SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 73.87-0.1%Jan 9 9:30 AM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Stock Farmer who wrote (44705)12/18/2000 9:43:58 AM
From: The Phoenix  Read Replies (1) of 77400
 
John,

I knew the answer to my question... I was looking to see if bambs could answer.... Thanks anyway.

As for your postulation on my point 2 you are right if you look at it in absolute terms however you have ignored the psychology of the situation. Employess who hope to exercise and hold (buy low sell high) will exercise a larger percentage of options when the price is depressed and will be less likely to exercise when the price is high.

Your comment.

One could argue price would play a part determining exercise. But this would be sophistry because facts (review of 10K) show differently.
Approximately 20% of outstanding options are exercised in any given year, without much price sensitivity.


would have merit if Cisco had seen previous plateuing/softening in the stock price in the past... it has not so you haven't much to base this assumption on. We will have a better view of this going forward. My thesis stands - that more shares will be exercised at lower prices.

OG
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext