Bi-Weekly webcasts for ESO holders and their Financial Advisors
Very few of the millions of employee/executives understand the nature of or the value of the grants of employee stock options. Even fewer understand the risks of holding ESOs or how to efficiently manage those ESOs.
We explain how a professional options market maker would manage his ESOs to lower risk, enhance the value and delay or reduce taxes.
The naive strategies of making premature exercises together with diversifying the proceeds from selling the stock has been discredited.
The only viable management strategy, in our view, is to hedge by selling exchange traded calls or buying puts. The net after tax results are far greater than other strategies.
We use a slide presentation with graphs to illustrates the risks of holding ESOs, the values of the ESOs and the consequences of early exercise.
We then explain the hedging techniques, relevant tax issues and the claim of other restraints
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