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Well, they're financial instruments. And like any financial instruments, they need to be understood. I'm not sure most people understand how stock options work.
by chasing 11y ago
Well, they're financial instruments. And like any financial instruments, they need to be understood. I'm not sure most people understand how stock options work.
- w1ntermute 11y agoExactly, it's silly to say they're worth nothing. That's like staying stocks you buy are worth nothing because the value could drop to 0. It's a matter of understanding what the probable outcomes are.
- walshemj 11y agoquit right some times they have a negative value (after tax)
- exolymph 11y agoAgreed. However, the human mind doesn't cope well with probabilities, so I think letting yourself believe that stock options are worth nothing is a good intellectual shortcut.
- khuey 11y agoThe real disaster scenarios come not from when they're worth nothing, but when they're worth less than nothing.
- codeonfire 11y agoThey are probably worth nothing. In a couple jobs the company had two sets of options with different strike prices. The high priced ones went to employees and the low priced ones went to execs and investors. Of course the stock was offered at a price in between and employees got to wipe their ass with the worthless options.
- superuser2 11y agoI think in those context "consider them worthless" means "budget as if they don't exist, mentally allocate them if and only if you successfully cash them out."