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What should you do with stock options during a recession?

every.to

101–110 of 243 posts

Re: What should you do with stock options during a recession?

#101

I'd like to know what to do with ~10 000 euros, right now. Where should I put it so it doesn't lose its value and keep a bit with inflation ? edit for a bit of context: Western Europe, renting, unlikely to be able to buy/invest into a house/flat, looking at gold ingots, not the nerve for crypto.

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Re: What should you do with stock options during a recession?

#103

I gave my Wife money to exercise her ISO's(startup before IPO) for her first 1.75 years of shares when the company valuation hadn't changed. Her company went public and the stock jumped and then crashed, I think the current price per share is lower than her exercise price so she is underwater and the money I gave her is worth less as shares vs. cash I originally gave her. Really a huge bummer as this job up-ended our…

I advise you to think 'if I had the value of these shares as cash would I spend 100% of it on shares of this company?' The loss already happened, that part is done. The shares have no memory and won't 'rebound' like a rubber-band just because they were down before. What matters is new things that the company does going forward, relative to all other companies.

sure, but if you sell out of every investment every time it goes down in value you won't be very successful

Re: What should you do with stock options during a recession?

#106
post #65
post #9

Earlier quoted context omitted.

Equities have been decimated. The housing market is starting to look like it's next. There is nowhere to hide right now.

Just a nitpick but s/decimated/devastated/ Decimated means 10% death rate (usually as an brutal lesson). Did stocks lose 10% or did 10% of stocks just get liquidated?

Just a nitpick but you're making an etymological fallacy.

https://en.m.wikipedia.org/wiki/Etymological_fallacy

The word "decimate" is explicitly mentioned in the article above.

Re: What should you do with stock options during a recession?

#107

I'd like to know what to do with ~10 000 euros, right now. Where should I put it so it doesn't lose its value and keep a bit with inflation ? edit for a bit of context: Western Europe, renting, unlikely to be able to buy/invest into a house/flat, looking at gold ingots, not the nerve for crypto.

Keep it as a cash reserve IMO. Save more.

Re: What should you do with stock options during a recession?

#109

> If you leave the company, your options will expire if you don’t exercise them. Let me repeat that: if you leave the company, your options will expire if you don’t exercise them. The exact timeline of how quickly they expire depends on option type and company policy, but the termination window is commonly as short as 90 days. So, exercising your options enables you to actually own what you helped build. This is why…

Can someone explain to me why stock options are better than RSUs?

Re: What should you do with stock options during a recession?

#110

Earlier quoted context omitted.

I advise you to think 'if I had the value of these shares as cash would I spend 100% of it on shares of this company?' The loss already happened, that part is done. The shares have no memory and won't 'rebound' like a rubber-band just because they were down before. What matters is new things that the company does going forward, relative to all other companies.

sure, but if you sell out of every investment every time it goes down in value you won't be very successful

I don't think that's what he's saying. He's saying the fact that it went down doesn't matter and you need to decide now would you invest that capital in that stock.
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