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

To: Petz who wrote (155557)4/10/2005 8:15:20 PM
From: DRBESRespond to of 275872
 
SEXY...no ? When I "fingered" this out I bought some shares on "general principles". I already own so many that further purchases make no sense for me.



To: Petz who wrote (155557)4/10/2005 8:18:34 PM
From: DRBESRespond to of 275872
 
BTW: "Option Exercise at $7.16 - $7.36 per share"
finance.yahoo.com



To: Petz who wrote (155557)4/10/2005 11:24:24 PM
From: BiomavenRead Replies (2) | Respond to of 275872
 
>>I did not realize that early exercise, as Hector has done, results in immediate tax liability taxed at ordinary income rates. (PS, it is probably even worse than that, since this income is for-sure taxed at even-higher-than-ordinary "AMT" rates.)<<

1. The options are sufficiently deep in the money that their exercise doesn't give up much time value. But it does involve paying tax now instead of later.

2. In terms of tax, this seems to have been a NQ option. That means the spread gets taxed at ordinary income rates upon exercise. ISO grants don't get taxed at exercise, but because of AMT optionees are in practice forced to sell the shares and disqualify the ISO - that essentially turns them into a NQ (except withholding on the taxes is not required).

3. The dramatic difference between the ordinary income rates and the long term cap gains rates surely provides the motivation for this transaction. Thus I concur that this is bullish, with a > 1 year time horizon.

Buy out of the money LEAPS.

Peter



To: Petz who wrote (155557)4/12/2005 6:44:43 AM
From: DRBESRead Replies (1) | Respond to of 275872
 
RE: "Obviously he doesn't expect the stock to go down" WOULD SOMEONE HERE PLEASE WAKE PRAVIN UP TO THIS DISCUSSION ? He seems to be good at this timing stuff.
So, everything considered, the stock is not going to go down much more AND it will go up a lot more: WHAT SHOULD WE DO ? WHAT SHOULD WE DO ? AND WHEN ???


HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News