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Which any wise person would sell immediately to diversify.

simonh 9y ago
Sure, but until those options vest you’re still doubly exposed. I’m in this position right now. A fixed amount from my pay goes into buying options which vest in 3 years time. Fortunately I could afford to lose that money if it came down to it, but it’s a real issue and in a worst case scenario that’s money I might need. It’s certainly a consideration.
- rebuilder 9y ago
  There's a reason you get a discount. Are employees who buy options generally unaware of the risks?
- wolco 9y ago
  Investing in options that vest in three years. Hopefully you are part of a big stable corporation.
dash2 9y ago
That is not necessarily true. As an employee, you may be in a good position to judge whether a firm is likely to succeed, with perspectives not available to the market. This is why markets often react when CEOs buy/sell their own stock.
- gaius 9y ago
  A CEO is an "insider" in market-speak. Jo(e) Engineer is just a punter like anyone else.
  - morgante 9y ago
    That's not strictly true. Depending on the company, it's very possible for mere engineers to have access to material non-public information. There's a reason many companies impose broad blackout dates on trading.
    - jessaustin 9y ago
      Mere engineers would be prosecuted long before CEOs for the totally-at-Justice-Dept-discretion crime of "insider trading".
  - anigbrowl 9y ago
    That's self-evidently false. Engineers have insight into the internal culture of a firm and how it may differ from public perceptions, not to mention their own opinions on the quality of the back end technology and awareness of future plans or possibilities.
- Marazan 9y ago
  The average employee would be in a terrible position. Ref: Enron.
- _ph_ 9y ago
  The advantage of the employee isn't insider knowledge - it would be illegal to deal based on it - but understanding what the company does and which market it works in in the first place. This purely technical knowledge might give investment decisions some better factual support. But
- underwoodley 9y ago
  Isn't it more likely that you don't know your employer as well as market analysts, but that you do have much more severe cognitive biases?
morgante 9y ago
You'd be amazed how many people willingly keep large portions of their net worth invested in their employer.

Sure, but until those options vest you’re still doubly exposed. I’m in this position right now. A fixed amount from my pay goes into buying options which vest in 3 years time. Fortunately I could afford to lose that money if it came down to it, but it’s a real issue and in a worst case scenario that’s money I might need. It’s certainly a consideration.

rebuilder 9y ago
There's a reason you get a discount. Are employees who buy options generally unaware of the risks?
wolco 9y ago
Investing in options that vest in three years. Hopefully you are part of a big stable corporation.

dash2 9y ago

That is not necessarily true. As an employee, you may be in a good position to judge whether a firm is likely to succeed, with perspectives not available to the market. This is why markets often react when CEOs buy/sell their own stock.

gaius 9y ago
A CEO is an "insider" in market-speak. Jo(e) Engineer is just a punter like anyone else.
- morgante 9y ago
  That's not strictly true. Depending on the company, it's very possible for mere engineers to have access to material non-public information. There's a reason many companies impose broad blackout dates on trading.
  - jessaustin 9y ago
    Mere engineers would be prosecuted long before CEOs for the totally-at-Justice-Dept-discretion crime of "insider trading".
- anigbrowl 9y ago
  That's self-evidently false. Engineers have insight into the internal culture of a firm and how it may differ from public perceptions, not to mention their own opinions on the quality of the back end technology and awareness of future plans or possibilities.
Marazan 9y ago
The average employee would be in a terrible position. Ref: Enron.
_ph_ 9y ago
The advantage of the employee isn't insider knowledge - it would be illegal to deal based on it - but understanding what the company does and which market it works in in the first place. This purely technical knowledge might give investment decisions some better factual support. But
underwoodley 9y ago
Isn't it more likely that you don't know your employer as well as market analysts, but that you do have much more severe cognitive biases?

morgante 9y ago

You'd be amazed how many people willingly keep large portions of their net worth invested in their employer.