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Technology Stocks : Intel Corporation (INTC)
INTC 36.82+1.5%Dec 19 9:30 AM EST

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To: rkral who wrote (180915)4/28/2005 10:07:13 AM
From: willcousa  Read Replies (1) of 186894
 
I am simply saying that the option plans of a company with a volatile stock are working in such a way that the employee with options can't lose as long as the company is reasonably sound. I don't like "can't lose" as an incentive program. There are plenty of ways to fix this. Also stock bonus plans mixed with some cash bonus don't seem bad to me. But the employee should be dollar cost averaged into the position.

What doesn't seem to work is an option plan where the options are cancelled and replaced whenever the stock takes a big drop. Doing that eventually means that options will get priced somewhere near an irrational bottom.

Will
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