information stocks|Getting Started In Employee Stock Options
An A to Z guide for understanding employee stock options (ESOs).
In Getting Started In Employee Stock Optionsauthors John Olagues and John Summa provide a full understanding of ESOs and demonstrate how to make the most of them. Page by page this author team, a highly experienced options market maker and a professional trader, share essential information that you’re probably not hearing anywhere else. This book contains the keys to managing and hedging ESO opportunities in addition to important tax and valuation guidance appropriate for the highest executives to the non-officer managers and the newly arrived employee.
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Examines essential ESO issues, including tax consequences, risks, and industry pitfalls
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Written by an experienced pair of stock option experts
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Enables employees and executives to make more informed decisions regarding their stock options grants
Written in a straightforward and accessible style, Getting Started In Employee Stock Options will help protect the value of your options, help you avoid costly mistakes, and allow you to take advantage of certain friendly tax rules. Some of the world’s foremost authorities on options have endorsed Getting Started inEmployee Stock Options.
List Price: $ 19.95
Price: $ 6.95
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June 6th, 2011 - 11:19
Core resource for hedging employee stock options,
The SEC in June 2009 approved a change in the CBOE and ISE rules to let vested employee stock options be considered usable collateral for selling listed call options on the underlying stock, as long as its approved by the company, and other steps must be followed. In Getting Started In Employee Stock Options, the authors John Olagues and John Summa go far beyond the basics indicated by the title and detail a call-options strategy that can help employees avoid prematurely exercising options and losing some of their value. While there are other resources that covers some of these topics, such as the articles in the Financial Planning: High Net Worth section on [...], anyone serous about this strategy for employee stock options will want to have this resource handy.
According to the authors (an experienced options market maker and a professional trader), the primary objective of their book is what they call “efficient management of ESOs” to allow individuals to maximize the “capture of time premium and intrinsic value of ESOs while minimizing the risk and tax liabilities.” Although they understand the occasional need to exercise and sell to generate liquidity, their strategy, which is not covered in detail in other books, is to hedge employee stock options to increase the net gains. While the topic of hedging and selling call options remains controversial at many companies, this book explains how it can rejuvenate the perceived value of stock options and provide a better alternative to the transferable options programs set up by a few companies, such as Google.
The book’s chapters give a detailed step-by-step approach to the strategy and a justification for it. For example, in one chapter it recommends “the 7 percent solution.” This says that employees, soon after getting grants, should sell listed call options (known as “writing”) equal to 7% of the number of employee stock options granted. The employees should also sell additional listed call options equal to between 7% and 10% of the stock held, if they already own a chunk of company stock. The chapter then covers the steps to follow, for the remaining years of the employee stock option term. While this is a highly technical topic, the information (along with some other ideas for companies to consider in their plans) is attractively presented, with side boxes for key definitions and tips, and examples to highlight key points.
Bruce Brumberg
Editor
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|June 6th, 2011 - 12:01
The ONE to buy!,
Contains strategies and astute viewpoints designed to help you get a monetary edge from owning those Employee Stock Options. Useful facts and perspectives and something for everyone whether you are an expert or a novice. You will glean a new outlook and perhaps a revelatory point of view on what can be done in the world of stock options.
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|June 6th, 2011 - 12:15
Fabulous read. Packed with useful information.,
As a newcomer in stock potions I found this book to be a valuable source of knowledge no matter what your your level of expertise. I would recommend this to anyone in finance and the options business.
Highly recommended.
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