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> if you want to capture any potential upside from your options, you're required to execute them, paying your own money for actual shares. If you want to captu
by yid 11y ago
> if you want to capture any potential upside from your options, you're required to execute them, paying your own money for actual shares.
If you want to capture upside, then you must believe that there is upside, so then surely you can offset the cost of buying the options into your expected return?
- dnr 11y agoIt's a question of liquidity: If you stand to make $1m but have to put up $200k right now, that only works if you have a liquid $200k right now, and are willing to risk it on a single company stock (as opposed to say a down-payment on a house).