Comments by "Magic Beans" (@Magic_beans_) on "Before You Buy a Stock Option - How They Work and Why They're High Risk" video.

  1. It can vary by employer. Typically your agreement with them (your contract or incentive program documents) will specify how you earn the options (the “vesting” period or requirements), what the strike price and expiration date are, and how to execute the options (for example: Do you buy the shares directly from the company or on the open market? Do you have to come up with enough cash to cover the strike price, or do you just give the order and they’ll exercise the options for you?) And of course they’ll always be call options because the point is to align incentives. If you help them be profitable and increase their share price, you get paid more.
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  2. 1:45 That should be a sign right there. If an introductory video is over your head, maybe you’re not ready to jump in yet.
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