Over the course of employment, a company generally issues employee stock options to an employee which can be exercised at a particular price set on the grant day, generally the company's current stock price. Depending on the vesting schedule and the maturity of the options, the employee may elect to exercise the options at some point, obligating the company to sell the employee its stock at whatever stock price was used as the exercise price. At that point, the employee may either sell the stock, or hold on to it in the hope of further price appreciation or hedge the stock position with listed calls and puts. The employee may also hedge the employee stock options prior to exercise with exchange traded calls and puts and avoid forfeiture of a major part of the options value back to the company thereby reducing risks and delaying taxes.
"For everyone's sake just shut up.
Your description of options was pathetic, and full of errors.
You do not know what you are talking about."
"Sure you did ;)
You lost a bundle. I read your "opinions", and you don't know jack-sh it. You come here and start running your mouth off about options, and again you don't know sh it.
I'm not sure how much clearer I can say this? Why don't you take what you have left and buy a nice used Winnebago, get out and see the world ;)"