Self-explanatory. I’m clueless. I just want to know how much money I’m going to be getting every month in total for my job.
In: Economics
In this situation the stock option is a contract that allows you to buy shares of the stock at a predetermined price on or before a certain date.
Let’s say you have an option price of $15/share. If the stock is trading at $30/share you can still buy them at $15, making an immediate profit.
If the shares are trading at $13/share, your options are worthless.
What exactly the options are worth will vary as the price of the stock moves. I got a large pile of options as part of my signing bonus with a previous employer and they were *never* worth anything, but some people do get rich this way too.
Your mileage will vary – I’d assume they’ll never be worth much unless they’re priced way below market already.
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