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Stock Options - To Sell or not to Sell?

  • 05-04-2017 9:42am
    #1
    Clint180
    Registered Users, Registered Users 2 Posts: 2 ✭


    Hi All, I was granted options with my company (Financial Services) last year which are vesting today. In the first half of 2016 the stock fell from $34 per share to $26 p/s, and since then has risen to a high of $36.51 p/s per share in mid March. In the past couple of weeks however the price has begun to decline and has dropped below $35 per share today. 

    I am considering selling today in case the price plummets again like last year, however part of me feels that the drop in price now is very coincidental, and may be a deliberate move on behalf of my employer in anticipation of staff exercising their options, and that the price will begin to climb again once some people offload. I know it's impossible to know for sure, but are there any indicators etc that might give me a hint? 

    I'm not desperate for the cash just now, but at the same time I don't want to wait another 6 -12 months should the price continue to fall. 

    Any input would be greatly appreciated! 

    Thanks


Comments

  • #2
    keane2097
    Registered Users, Registered Users 2 Posts: 17,789 ✭✭✭✭keane2097


    If a load of people start selling now then supply and demand would suggest that it would lower the price rather than increase it.

    Realistically your company's share price is more than likely being dictated by external market forces rather than the fact that peoples' options are vesting at the moment.


  • #3
    Clint180
    Registered Users, Registered Users 2 Posts: 2 ✭Clint180


    Thanks for the responses. I don't have any evidence that they are doing anything wrong, was just a thought really, probably just paranoia. 
    From Keane's point it would stand to reason that the price isn't likely to improve in the short term if a significant amount of staff sell (which seems to be the plan from what I'm hearing on the floor).


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