Comment Re:WOw, what a neat idea (Score 1) 84
I read about 50 comments and your's is the most informed. However you still have a lot to learn about options.
The Google plan in my opinion is creative but not well thought out.
Any employee or executive can presently hedge his options with exchange traded calls quite easily.
Proper hedging will increase his return, reduce taxes and risk with the Employee getting about 50% more after tax compared to some elementary strategies promoted for mass consumption.
The Google plan will merely end up by putting money in Morgan Stanley's pocket at the expense of Google and the employees.
It will be interesting how it developes.
Yesterday there was a drop in call and put premiums in the longer options of Google in anticipation of Morgan selling the premium to hedge its expected purchases.
Cheers: