Stock Options and Wealth
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But then I got to thinking that I shouldn’t really be worrying about it right now. I won’t be fully vested for another 2 .5 years. In addition, I stand to receive another grant in the spring of ‘07 so the lower the price is then, the cheaper my options will be priced and the more value I can hope to earn from them. Also, I buy shares through a share purchase plan every month and don’t plan on selling anytime soon (I will sell some when my company position becomes 5 - 7% of my portfolio). The lower the price they are the more shares I can accumulate. If you believe some of the news reports out there then this is the beginning of an extended retreat in energy stock prices - but I have written about being cautious with the media before.
What do I plan to do? (1) Hope that as my options start to vest I will realize some good money out of them but not banking on them in any concrete fashion - they have no cost to me from a cash perspective so in effect I don’t really lose anything if they don’t go anywhere, and (2) Monitor my stock holdings through the share purchase plan and ensure that it does not become too big a chunk of my portfolio - as the shares appreciate over time I will trim back my holdings to diversify myself into other areas (i.e. dividend growth stocks).
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finance girl said:
stock options are a huge incentive for me, and I hope you have good luck with yours. Me, not so good luck. I had MSFT stock options as an employee from 2000-2006, including some stock options that had been with a company (know Visio?)purchased by MSFT in Jan 2000 that got converted wholesale over to MSFT.
I had to put on scuba gear to see most of those options, if you know what I mean.
October 9th, 2006 at 8:56 pm
