4 ms·
This isn't accurate. Options are discounted by their expected dividend payout. Unless a company is issuing either 0 dte or decades out expiration options, no op
by iakh 4y ago
This isn't accurate. Options are discounted by their expected dividend payout. Unless a company is issuing either 0 dte or decades out expiration options, no options are giving any corporate exec 100x leverage.
- mitthrowaway2 4y agoThat doesn't sound right. Can you explain in more detail? The only mention of 100x was in regards to a buyback, not a dividend. Options are generally issued with a strike price equal to the current market value, to minimize the tax liability. Following the options grant, a subsequent decision to perform a share buyback would be new information to the market, not expected. Even the execs who received that options incentive package wouldn't have known at the time that they'd be doing a buyback down the road, even though they'd be rewarded for doing it.