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Old 10-04-2007, 10:10 PM
RiverDancer RiverDancer is offline
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Join Date: Sep 2002
Location: NYC
Posts: 37
Default Re: Cashing in my options

I've never had employee stock options, as I'm a professional self-employed options traded. This means I don't know the rules for employee options as far as hedging and the like. I will give you a few pointers, though. First of all: Long Call, Short Put = Long Stock. This means that Long Put, Short Call = Short Stock. Long Call, Short Stock = Long Put. Long Put, Long Stock = Long Call. The list goes on but it's pretty easy to derive. Secondly, If you have options that are ITM and expire in several years it is probably a bad idea to exercise them. Options have intrinsic time value which makes them worth more than simply how much they are ITM. It would be a better idea to sell the options on the open market if that is allowed.

RiverDancer
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