I was at Netflix and participated in the stock options program so have approx 450k in options expiring in 4-7 years. I could obviously sell the ones ITM now but would be leaving money on the table bc of the remaining time value. Is there any secondary market for these where I could sell them at a premium?
you know that time value aspect can work both ways and the stock can go down as well. If you want the capital but want to retain your equity, I’m sure you can use your equity as collateral for a loan.
The Netflix employee stock options program is 10 year options
im surprised you can continue to hold company/compensation options after leaving, even if vested. i think we have to exercise/sell them within a certain short time period after leaving.
Netflix doesn’t put restrictions on this
so, how do you exercise them? does netflix remain the counterparty even years after you have left?
Of course the stock could go up or down but I’m saying that the current value is clearly strictly greater than the value if i just exercised them. I want to know if anyone knows of a secondary market where I can realize that value.
same boat. same amt. did you plan doing long term by exercise to get stock units? thst way you sell afterwards as long term gains
Not sure I follow but my understanding is the spread between the exercise and strike prices is treated as normal income for tax purposes not capital gains since these were purchased with pretax money. If you hold the stock then anything moving forward will be capital gains.
I was informed by etrade it works. join netflix ex employee slack channel and ask main topic questions
You can't sell them on the secondary market as no one is making markets for such long dated options. When the maturity reaches something you can actually trade on an exchange, you could do it. But that's around the 2 year expiry mark.
Netflix options are not transferrable
Why did you buy options that long? 7 years out? 1 year options is already considered super long
I think he means he got them as a form of compensation as an employee. I don't think he bought them on the stock market, if I'm understanding both of you correctly
SF, you know options aren’t like RSUs right bud?