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Strategies & Market Trends : Employee Stock Options - NQSOs & ISOs -- Ignore unavailable to you. Want to Upgrade?

To: Stock Farmer who wrote (41)	6/14/2002 8:43:13 AM
From: rkral	Read Replies (2) \| Respond to of 786

I noted: "this approximation produces an error of n/N" You said: "Ron, in some companies, that's enough error to drive a billion dollars through." John, you're a funny guy. I *duplicate your result* (except for your P=A/N sub) and *now it's my approximation? Give me a break. I was subtly pointing out the approximation in your equation*. (The irony: I was trying to be polite by not pointing out your error in the link provided. IMO you weren't even consciously making the approximation at the time .. you just flat out made a mistake when you multiplied by (N+n) instead of N. And then you jump on my note.) >>"Before the transaction [edit: ...] a pile of cash worth $70.00 + x$, whatever x is." "After the transaction [edit: ...] a pile of cash worth $0.00 + x$, whatever x is."<< Had x$ .. still have $x. It's clear that an x$ we don't need .. as I said previously. John, this approximation and x$ stuff is nitpicking stuff. Let's try to move forward on substance. >>"So through Mr Market's ownership of The Company, Mr. Market only gains or loses 100.0000000% of what the company gains or loses, minus the $70 in cash that Mr. Market paid the employee for the share."<< Congratulations! A cogent and substantive argument. And I cannot find a specific logic error .. at least right now. However, I am still suspicious .. since it has verbalized the P=A/N math sub .. i.e., it still mixes equity and market valuations. Yes, I know about the ownership viewpoint. I think we can move to parallel arguments and counter arguments. As counter, I propose we discuss why giving a share of stock to the employee on the "grant date" is virtually identical to the 1 share grant, but yields completely different numbers. I presented this counter argument to you in the past .. but you never addressed it. (SI search doesn't seem to work on the big big threads, QCOM Buy Range being one of them. Anyone else having the same problem?) Gotta run. Mr market calls. I see QCOM at $28.30 in pre-market. Did I ever luck out. Sold all my long position yesterday at $33.673000. <g> Got to take an SI break .. to decide if I want to bet on an upside bounce today. Ron