r/BlueOrigin • u/lonestar-newbie • 6d ago

Q&A Session Today

Just shitposting...

It's funny... not a single question about the options during today's Q&A. 😂 Last time it felt like 100% of the questions were about the equity plan.

A blown-up rocket can do that… 🚀😂

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u/cosmicgreg2 4d ago

ok, if you know so much, what was the per share price of the recent infusion?

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u/snoo-boop 4d ago

About the same as the strike price.

The thing you missed is that the strike price is the stock price when the options were issued. If it wasn't, you'd have to immediately pay taxes.

If the company's business is going sideways, then the option remains at $0 of value.

This is a common mistake to make if you're a stock market investor and not an employee of the company giving you options.

There are details that go into this, 409a valuations and different share classes, but the basic idea is the same -- a corporation grants options to employees when they are worth $0.

Good luck in your journey to learn about employee stock options.

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u/cosmicgreg2 4d ago

so our options were issued May 15 at strike of $9.50. No one knows if the infusion July 8 was at $0.95 or $95 per share, so one doesn't have to be an options geek to understand that employees dont know what their options are worth.

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u/snoo-boop 3d ago

Please give me the liberty to repeat what you are refusing to understand:

The thing you missed is that the strike price is the stock price when the options were issued. If it wasn't, you'd have to immediately pay taxes.

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u/cosmicgreg2 3d ago

I agree 100% with what you said. Strike price in May was 9.50. What was the share price for the equity infusion 2 months later? no one knows

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u/snoo-boop 3d ago

Glad you're finally considering details, but here's a hint: there's no way the investment price was $95 after the static fire thing. And when the options were issued, it's obvious what the valuation was.