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Technology Stocks : Orbital Engine (OE)

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To: Dr Mike who wrote (4532)10/17/2000 9:03:53 AM
From: q39  Read Replies (1) of 4908
 
Everyone needs to remember that if you exercise an option you have to invest some money from your personal accounts because you are buying the stock, albeit at a discount. Taking profits immediately is therefore commonplace. This is why most options traders just close the position.

P.S. I tend to vote against issuance of options on my proxies (except for way out-of-the-money ones) because they dilute the stock and most employees, even corporate officers, will sell the shares received from exercised in-the-money ones right away. The reason I vote for well out-of-the-money options is that A) by then, I will probably have sold my stock or B) the dilution is worth the cash received or C) I'm so far ahead I don't care at all.
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