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Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?


To: burn2learn who wrote (56076)9/22/2001 10:28:26 PM
From: BilowRead Replies (1) | Respond to of 275872
 
Hi burn2learn; Cool! Someone asking for advice! Take the money and run. Even if that company happens to be AMD, which isn't so over valued. But if this is the usual option deal where they give you 4 or 5 years to vest, it would only be 1000 shares per year. To make it worth your while (and your risk), you want to have a realistic chance of making triple your money. If you're giving up 50K per year, that means an options package worth (assuming 4 years) maybe triple 4 x 50K = 600K. With 4000 shares, that means you want to see a good chance of seeing that stock rise by $150 per share.

No way is AMD going to be $160 per share 4 years from now, I think.

It's almost undoubtedly a better deal to take the money. There are some other considerations. The other company could be a lot more fun to work at. Money isn't everything.

In addition, there are probably some good options deals at small (preferably private) companies out there. Those stocks have sometimes exploded. But those are chancy things, and I'd only do it if it was something I liked doing anyway.

-- Carl



To: burn2learn who wrote (56076)9/22/2001 10:55:14 PM
From: Jim McMannisRead Replies (2) | Respond to of 275872
 
Very hard to give any advice given the information you provided...
If it was me I'd take or stay at the more secure job. At least until we get thru' this.



To: burn2learn who wrote (56076)9/23/2001 1:19:28 AM
From: Eric K.Respond to of 275872
 
OT learn to burn--

Why not just value the options using Black-Scholes? If you're already investing in stocks, there isn't any particular "value-added" to getting long-term options in one company (which there would be for people who would spend all of the $100k a year or aren't motivated enough to invest their money). Two easy online options pricers are available at the following urls. Just check if the value of the stuff you're getting is >= 50,000. If not, make your decision based on likely personal gratification from your jobs.

intrepid.com

negosystem.com

-Eric



To: burn2learn who wrote (56076)9/23/2001 1:30:54 AM
From: Dan3Read Replies (1) | Respond to of 275872
 
Re: The new position would also grant options every year

I'd go with whatever offered the most interesting and satisfying work.