Exhibit 10.69

     STOCK  OPTION  AGREEMENT  made as of September  19, 2002  between  NATIONAL
MEDICAL HEALTH CARD SYSTEMS,  INC., a Delaware corporation (the "Company"),  and
Tery Baskin (Optionee").

     WHEREAS,  the  Optionee  is an  employee  of the  Company  or a  subsidiary
thereof;

     WHEREAS,  the  Company  desires to provide to the  Optionee  an  additional
incentive to promote the success of the Company;

     NOW,  THEREFORE,  in  consideration  of the  foregoing,  the Company hereby
grants to the Optionee  (the  "Grant")  the right and option to purchase  Common
Shares of the Company under and pursuant to the terms and conditions of the 1999
Stock Option Plan (the "Plan") and upon and subject to the  following  terms and
conditions:

     1. GRANT OF OPTION. The Company hereby grants to the Optionee the right and
option (the  "Option") to purchase  Five Thousand  (5,000)  Common Shares of the
Company (the "Option Shares") during the following periods:

     (a) All or any part of Six Hundred  Sixty Seven (667) Common  Shares may be
purchased  during  the  period  commencing  one year  from the date  hereof  and
terminating at 5:00 P.M. on September 19, 2007 (the "Expiration Date").

     (b) All or any part of Six Hundred  Sixty Seven (667) Common  Shares may be
purchased  during  the  period  commencing  two years  from the date  hereof and
terminating at 5:00 P.M. on the Expiration Date.

     (c) All or any part of Six  Hundred  Sixty Six (666)  Common  Shares may be
purchased  during the period  commencing  three  years from the date  hereof and
terminating at 5:00 P.M. on the Expiration Date.

     2.  NATURE OF OPTION.  Such  Options  to  purchase  the  Option  Shares are
intended to meet the requirements of Section 422 of the Internal Revenue Code of
1986, as amended, relating to "incentive stock options".

     3. EXERCISE PRICE. The exercise price of each of the Option Shares shall be
Eight Dollars and 15/100 Cents ($8.15) (the "Option  Price").  The Company shall
pay all original issue or transfer taxes on the exercise of the Option.

     4. EXERCISE OF OPTIONS.  The Option shall be exercised in  accordance  with
the provisions of the Plan. As soon as  practicable  after the receipt of notice
of exercise (in the form annexed  hereto as Exhibit A) and payment of the Option
Price as provided  for in the Plan,  the Company  shall  tender to the  Optionee
certificates  issued in the  Optionee's  name  evidencing  the  number of Option
Shares covered thereby.

     5. TRANSFERABILITY. The Option shall not be transferable other than by will
or the laws of descent and  distribution  and,  during the Optionee's  lifetime,
shall not be exercisable by any person other than the Optionee.

     6  INCORPORATION  BY  REFERENCE.  The terms and  conditions of the Plan are
hereby incorporated by reference and made a part hereof.

     7. NOTICES.  Any notice or other  communication  given  hereunder  shall be
deemed  sufficient  if in writing and hand  delivered or sent by  registered  or
certified mail, return receipt  requested,  addressed to the Company,  26 Harbor
Park Drive,  Port Washington,  New York 11050,  Attention:  Secretary and to the
Optionee at the address  indicated  below.  Notices shall be deemed to have been
given on the date of hand  delivery  or  mailing,  except  notices  of change of
address, which shall be deemed to have been given when received.

     8. BINDING  EFFECT.  This Agreement  shall be binding upon and inure to the
benefit  of the  parties  hereto  and their  respective  legal  representatives,
successors and assigns.

     9. ENTIRE AGREEMENT.  This Agreement,  together with the Plan, contains the
entire  understanding  of the parties  hereto with respect to the subject matter
hereof and may be modified only by an instrument executed by the party sought to
be charged.

     10.  CHANGE IN  CONTROL.  Notwithstanding  anything  to the  contrary,  all
options  granted  hereunder  shall  immediately  vest and be  exercisable by the
Employee  pursuant  to  the  terms  hereof  in  the  event:  (1)  the  Company's
stockholders   and/or  the  board  of  directors  approve  a  merger,   sale  or
consolidation  of the Company;  (2) the Company's  stockholders  and/or board of
directors  approve the sale or  disposition of all or  substantially  all of the
Company's assets; (3) the Company's stockholders approve the sale or disposition
of all or  substantially  all of the capital  stock of the  Company;  or (4) the
Company's   stockholders   and/or  the  board  of  directors  adopt  a  plan  of
liquidation.

     IN WITNESS WHEREOF,  the parties have executed this Agreement as of the day
and year first above written.

                                                     NATIONAL MEDICAL HEALTH
                                                     CARD SYSTEMS, INC.
                                                     By:

                                                     -------------------------
                                                     Bert Brodsky, Chairman

                                                     -------------------------
                                                     Signature of Optionee

                                                     --------------------------
                                                     Name of Optionee

                                                     -----------------------
                                                     Address of Optionee

<PAGE>

                                    EXHIBIT A

                   NATIONAL MEDICAL HEALTH CARD SYSTEMS, INC.
                              OPTION EXERCISE FORM


     The  undersigned  hereby  irrevocably  elects to exercise the within Option
dated  __________________  to the extent of purchasing  ________________  Common
Shares of National  Medical  Health Card Systems,  Inc. The  undersigned  hereby
makes a payment of $______________ in payment therefor.


                                                 -----------------------
                                                 Name of Optionee


                                                ------------------------
                                                Signature of Optionee


                                                ------------------------
                                                Address of Holder


                                                ------------------------
                                                Date