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Old 09-04-2014 | 12:12 PM
  #1481  
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tsquare
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From: 767er Captain
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Originally Posted by Herkflyr
They are not inconsistent. They are both "at risk" but one (profit sharing) is based solely on the company's financial performance. The others (stock and options) are based in part on what the market thinks of the company's performance.

While the market is very rational in the long term, it can be very irrational in the short term. That is the problem with stock options. Not only do they have a limited shelf life, thus more subject to the silly short term fluctuations of the market, but you also have to be right not only about the predicted direction of a stock price, but also the magnitude of the direction.
Options can be rolled. Just today I rolled a few AAPL options when the stock took a hit and netted a little beer money and strengthened my position. That is why I was saying that if they are placed in a trading account (preferably one of my choosing) and immediately available to me, I would be all over options. If I have to wait.. not interested.
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