The Stock Options Game

[Shy Tall Guy]

Who here has won?

Who has lost?

Who has broke even or just about?

I exercised my stock options a little over a year ago when I was laid off. The way they talked we were all going to be almost millionaires. Without going into details I found out differently today. I still don't know whether I am going to be a winner or loser as I don't have all the details yet, but even if I am a winner, I probably won't win by much.

 

[cybergirly]

Broke even.

 

[Shy Tall Guy]

Broke even.

Does that include the interest you could have earned on the money you invested, had you put it elsewhere?

Yeah I know, it isn't that much these days, but it is better than breaking even. With inflation, breaking even usually means actually loosing money.

 

[cybergirly]

Does that include the interest you could have earned on the money you invested, had you put it elsewhere?

Yeah I know, it isn't that much these days, but it is better than breaking even. With inflation, breaking even usually means actually loosing money.

No it wouldn't include the interest. But it does include some company match, so I still say about even.

 

[Shy Tall Guy]

No it wouldn't include the interest. But it does include some company match, so I still say about even.

Company match?

We are talking about the same thing aren't we? I am talking about options that you can exercise to buy stock in the company you work for - at a supposedly discounted price. Then, if the company is public you can sell the stock at a profit, if the company is private, then when the company goes public, you may really hit it big time with stock splits, etc. If the company is sold then you get cash or stock in the buying company.

I didn't mean putting money into a 401k, IRA or other pension plan.

 

[cybergirly]

Yep we're talking about the same thing. 2 years ago part of our new union contract was the option to buy so many stocks... don't remember the numbers now. Part of the deal was that if you bought before a certain date, the company would match 5%. It's a public company and if I remember correctly the date was "before January 1". So by the company adding to the employees purchases it made them look more profitable.

 

[Texan]

Yep we're talking about the same thing. 2 years ago part of our new union contract was the option to buy so many stocks... don't remember the numbers now. Part of the deal was that if you bought before a certain date, the company would match 5%. It's a public company and if I remember correctly the date was "before January 1". So by the company adding to the employees purchases it made them look more profitable.

cybergirly..... you and STG are talking apples and oranges.....

STG...... I have options that are worthless.... I've been receiving options for 8 years. The company went public 3 years ago. I'm still in the window to exercise some of the options, but unless something amazing happens to the markets, none of my options will be worth exercising..... damn shame too.......

 

[sandy_folsom]

Luckily for me, I was in the market before the big run-up in 2001 and I was able to take some profits before the crash. It still hurts to see my holdings drop by a third.

One good thing is that I spend less time watching the stock market and more time dreaming about sex.