Thanks V,
I was going to say in the last post, imagine if you had
options on Nortel, executed them and held onto the stock
instead of immediately selling (they're sure to go back up,
you think). Say executed them at 110, stock went up, then
slipped, then crashed. 5,000 options executed at 110.
550,000. Stock now worth 60 thousand at 12.00 a share.
Income tax owed 45% x 550,000. Then I thought naw, nobody
would be that dumb but....
The good thing is that having read the article is that
I'm not so condemnatory of people exercising their options
and immediately selling the stock. Especially in a spec
environment. It does though indicate that they don't think
the stock is going hirer. or they need grocery money.
Neither is very encouraging. Still, I was offered a PP
recently and turned it down. However, if I'd taken it,
I'd have exercised and flipped once I had a decent profit.
Waiting for the big kill has nearly always cost me money. |
