Talking stocks, trading, and investing in general

[patrickBOOTH]

I welcome market declines at my age.

 

[Piobaire]

You and UnF are not wrong but I'll need a crazy bull when it comes time for me to start liquidating and pivoting over to some interest/dividend type stuff one day.

 

[ThinkDerm]

I welcome market declines at my age.

Still painful though

 

[UnFacconable]

Starting to get decent traction in my job search. Should be able to tease out any offers to beyond when my year end bonus is paid at the end of the month, which is nice.

Assuming I do leave, still have to figure out whether I can get extended exercise for my current company stock options or if I can finance my option exercise. I’m in a bit of a precarious position given statements I’ve made to the CEO in the past combined with how my resignation will be perceived. I have a decent slug of equity so would be a shame to have to walk away from it entirely.

Has anyone had a good experience with one of the funds who financed stock option exercise (like ESO Fund)?

 

[Omega Male]

Sounds like you need a lawyer.

Sorry I got nothing but banter.

 

[jbarwick]

They're called golden handcuffs for a reason.

 

[lawyerdad]

They're called golden handcuffs for a reason.

Unless you're at the intersection of bdsm and water sports, in which case it's an entirely different reason.

 

[venividivicibj]

I thought they were fluffy handcuffs

 

[UnFacconable]

They're called golden handcuffs for a reason.

I think golden handcuffs generally refers to incentives that you earn over a period of time. I'm just talking about the finances of paying for my exercise of already vested options, so the handcuffs are more of a secondary consequence.

I spoke with a potential funding source for my exercise and wow the economics are horrible. They take a substantial percentage of the entire exit amount in addition to their initial loan. so in rough numbers, if I have to spend $10 to exercise now and my stock is worth $20 in an exit, they take $6-8 out of the total and then they take back their $10. I was thinking they take back their $10 and then get like $2 out of the remainder. Obviously these aren't real numbers since my stock is worth more like $27 but wanted to make the math simpler for you knuckledraggers.

I understand where they are coming from since it's basically a zero recourse loan but this only seems like it's worth doing as a last resort. I guess that's what I get for talking to a loan shark.

 

[brokencycle]

I think golden handcuffs generally refers to incentives that you earn over a period of time. I'm just talking about the finances of paying for my exercise of already vested options, so the handcuffs are more of a secondary consequence.

I spoke with a potential funding source for my exercise and wow the economics are horrible. They take a substantial percentage of the entire exit amount in addition to their initial loan. so in rough numbers, if I have to spend $10 to exercise now and my stock is worth $20 in an exit, they take $6-8 out of the total and then they take back their $10. I was thinking they take back their $10 and then get like $2 out of the remainder. Obviously these aren't real numbers since my stock is worth more like $27 but wanted to make the math simpler for you knuckledraggers.

I understand where they are coming from since it's basically a zero recourse loan but this only seems like it's worth doing as a last resort. I guess that's what I get for talking to a loan shark.

I hate when the math is easy.

 

[lawyerdad]

I think golden handcuffs generally refers to incentives that you earn over a period of time.

And even more specifically to incentives that have a delayed vesting date so that if you leave you’re forfeiting incentives awarded for past years of service but don’t vest for, say, several years.

 

[Omega Male]

That's nuts. Is cashless exercise an option?

 

[UnFacconable]

No on cashless exercise. My goal is to extend exercise for a few years and hpe the company exits during that period.

It is definitely coloring my requirements for the next gig. Either public company, late stage unicorn with RSUs or early stage company with low strike price and early exercise. Extended post-employment exercise cures a lot of ills though and could make other opportunities work too

 

[brokencycle]

No on cashless exercise. My goal is to extend exercise for a few years and hpe the company exits during that period.

It is definitely coloring my requirements for the next gig. Either public company, late stage unicorn with RSUs or early stage company with low strike price and early exercise. Extended post-employment exercise cures a lot of ills though and could make other opportunities work too

Can you hook me up with a sweet gig though?

 

[otc]

How confident are you in a successful exit?