How to Manage your Employee Stock Options

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Here is an article form Futures Magazine, the largest and oldest magazine on derivatives, by John Olagues.



http://www.futuresmag.com/Issues/2011/December-2011/Pages/How-to-manage-your.aspx


 


John Olagues

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Complexity is the main reason why employees and advisors don't use hedging strategies to manage employee stock options.  When people don't understand something they usually don't proceed.  Your article explains "why" hedging strategies can be effective, but the "how-to" is another matter that requires lots of knowledge and expertise.


In order for people to start using market traded options (puts and calls) to manage their employee stock options they have to first understand the concept of "time value" and be able to calculate it for their grants. 


There are several videos at the following link that explain "time value" and show how this can be used and monitored to make timely and profitable stock option exercse/sell decisions: http://blog.stockopter.com/category/how-to-and-concept-videos/

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