Quote:
Originally Posted by Dean
I understand how options work and was not claiming to know what your financial position is. I used to work with people who had the majority if not all of their 401K in the company stock. That is what I am saying was not a good practice. there are also people who either hold their options beyond when they vest/mature or exercise options and then hold the stock. Those are equally bad.
An option that has not yet vested is not an investment, it is a promise or a hope and should be treated as such, just like bonuses and to some extent dividends.
And if you think your company's stock is going down, nothing prevents you from shorting the stock against those options using the options as a hedge. If you are right, you make money on the short, if not, you exercise the options which cost you nothing and close the short position flat. Talk about a low risk option. A free covered short or long position is an investor's dream and it is legal.
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I'm not bitching about IGT stock specifically, other than to use it as a reference that we're at a 4 year low only months after we hit our all-time high.
I could have picked any one of 100 other stocks as an example of the economy tanking.
And like JC said, I could have just pointed out the Canadian dollar is worth more than the US dollar.