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


To: vegetarian who wrote (76205)3/11/1999 3:55:00 PM
From: John Hull  Read Replies (1) | Respond to of 186894
 
M-, no, I think you're mistaken here. Intel options are granted at market price and then don't vest for five years. (there are some minor exceptions in vesting period in the case of options granted to board members - but that's a nit in this discussion)

Then, once vested, the options live on for five more years. So, some of these options you see being exercised are ten years old. Now go do the math on the stock price and the split adjustments and see what that gets you. ($25 in 1989, three 2/1 splits since then...) I have options with strike price <$20, and those are less than 5 years old. Great to have a stock that appreciates over time.

The "big fishes" you mention have been here a looooonnnnngggg time.

regards,
jh