TRCPA....
An option has a lifespan. The price is set at the time it is granted. If the pps does not increase beyond that price, during the lifespan an option is worthless.
People who accept options in liew of salaries or goods, must look at it in one of two ways: 1. The pps will no doubt increase. 2. I don't have much of a chance of getting my salaries. I GUESS that they could look at it another way (Just gamble,)...If the pps does not increase above the option price there would not be any reason to exercise the options. That is how I see it.
I exercised 50000 options on WMI at 19. the pps had retracted down to 18. just a month prior. In that same year, I sold WMI at 28. made some money for me and some for Uncle Sam and even some for my broker. ( which is a convential broker.). He does not like BB stocks, so I went to Ameritrade for stuff that I make all of the decisions on. I have done fairly well, but I want to take my broker out to lunch and give him a GOOD up to date report on FASC. Ha ( I believe in FASC.) Do you think I might have a luncheon date for4 the near future? LOL
