To: ken5050
"Something like 95% of NQSOs are flipped same day..."Since this is a primer and since some of us are totally new to the stock option game, can you define "flipping an option"? Thanks.
63 posted on
07/17/2002 10:06:38 PM PDT by
sultan88
To: sultan88
Flipping means that the stock options are exercised, and the stock is sold, in a simultaneous transaction. And the employee doesn't have to front the cash. In the example I quoted, of the NQSO for 100 shares of XYZX at an exercise price of $10, with the stock now selling for $30, the employee merely fills out a form saying that he want to exercise and then sell....The employee "buys" the stock for $1000, then it is sold for $3000..the employee nets $2000 gain, and the employer withholds the $400 in taxes, and the employee gets a check for $1600..
66 posted on
07/18/2002 6:18:12 AM PDT by
ken5050
To: sultan88
To flip, in this context, is to exercise an option one owns and then immediately sell the shares.
86 posted on
07/19/2002 2:48:21 PM PDT by
SAJ
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson