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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: rudedog who wrote (64004)	9/5/1998 11:54:00 PM
From: Haim Barad	Read Replies (1) \| Respond to of 186894

You are responding to this message from rudedog on Sep 5 1998 9:50AM EST Badger - when thinking about the gain on your options, remember that your cost basis is 0. If you're referring to Badger receiving employee options, then I don't understand why everyone thinks that these are some gift from heaven or something. Employees work hard for these and should view them as part of the entire compensation (the company could have skipped the options and given you more salary instead - but then this doesn't have the incentive that options do to help the company). When an employee is awarded options, they're given options with a certain expiration date (this is why you often see lots of Intel employee sells during the spring... some options might be expiring) and at a base price EQUAL to the current INTC price when awarded. Think of them as LEAPS. Do they have a value as LEAPS? YES. Think of this value as the amount that you're receiving from the company in leu of some salary. That's all. So, the cost basis might be small if the company does real well over the term of the option... but that's true of anyone who also bought LEAPS during the same term. Don't view your options as some gift to be embarrassed about. View them as part of your hard earned salary. When making future decisions about them... keep in mind that you DID pay for this investment as anyone else who bought a similar LEAP. Haim