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


To: Johhny Options who wrote (747)5/26/2005 1:15:29 PM
From: R2ORead Replies (1) | Respond to of 786
 
employee can best manage those options

Since the 'options' are simply a promise by the company, made to an 'at will' employee (usually), subject to arbitrary conditions, what would you propose to 'manage'?

What would a put or call be worth when the seller can decide to just not deliver the underlying security? In fact, for employees that would realize a large profit on their options, the company has an interest in firing them and 'canceling' the options. The option (at grant) doesn't give you a property interest in anything. Maybe Cisco can, but it seems doubtful.

Since (my understanding) as soon as an option becomes exercisable the 'gain' is taxed few in the money options are kept after they are exercisable.

Should you be able to find somebody to buy such 'options', please tell us.