What do we as TM'S do with our empty stocks? Shall we sell what we can now or wait it out?
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3hyy you are correct! Many people think they are getting $42 a share, they get the difference from strike etc.. you said it well. 450 shares is not a lot but might as well take advantage
Why someone would get more than the buyout price of $42/Share:
I'm not an expert (so I may have this incorrect) but as I understand it, if a competing corp. comes in with another offer (ie. $45/share) it would force Amazon to make a decision to make a new offer or abandon the deal. Part of Amazon's contract includes absorbing all of WFM's debts as well (this in included in that $42/share = $13.7 billion as I understand it) so the competitor would have to consider that as well. If Amazon stays in, a new offer higher than the competitor's will be presented. Two competing companies could potentially drive up the purchase price ($/share) from the original $42 to potentially the $50 range. It's highly unlikely it would go above that. BUT, WFM stock on the market (NASDAQ) could get driven up as well and could go well beyond $50/share, depending on whom the competing bidder(s) are. If the competing company is on the same playing field as Amazon, WFM stock could shoot up to $60/share on the market. Only those whom have accepted their 2017 grants (go to Fidelity and do this now!) can exercise (essentially acquire then sell) their stock options and profit from this.
EXERCISING STOCK OPTIONS - Forbes: "...if the current stock price is $75/share and your strike price is $50 per share, then by exercising your option you can buy the shares (basically cash them out) at $50 (strike price) and immediately sell them for the current market price of $75, for a $25/share profit (minus applicable taxes, fees, and expenses)."* STRIKE PRICE: the price set in your account/contract that you can buy it at. For some it may be $10.50/share, others $30.70/share, I believe it primarily depends on when the options/shares were granted and their value on the market at that time. *Exercising Stock Options: Forbes - https://www.forbes.com/sites/financialfinesse/2012/03/13/when-should-you-exercise-your-options/#2b9da3121680 Strike Price: Investopedia: http://www.investopedia.com/terms/s/strikeprice.asp) Hope that helps. Feel free to correct any and all mistakes. Again I AM NOT AN EXPERT.
The stock closed over 42 on friday. People who shorted in the 30s expecting it to go down to the 20s are in deep crap.
Wait for the deal to be final with the SEC, then they will vest at the final price of the deal. Anything you have above the merger price( most likely $42) in grants will be worthless and cancelled. Anything below will be available to cash out in your Fidelity account. Tax man will withhold a cut, and depending if you own them..i.e. TM purchase plan or grants will depend on the amount of money you get. If they are vested already you can sell them now if you wanted. But if they are not you have to wait for the deal to close and they will vest
But what can we do I have 450 shares please somebody explain to me?
Not likely But it is possible... Bidding War. It's on the news now. If someone bids higher, Just to make amazon pay more. Not a real bid. But drive up the price per se...happened before with mergers not likely but have my hopes up...that's why the stock was trading above 42$ a share today...and the dumb shorts covering...I hate bears!!!
I'm curious as to why you would think anyone would get more than the buyout price of $42 a share. This is a genuine question, as I have quite a bit stock but don't work for the company anymore and am wondering what will happen.
I'm curious as to why you would think anyone would get more than the buyout price of $42 a share. This is a genuine question, as I have quite a bit stock but don't work for the company anymore and am wondering what will happen.
@stv - yes, same here - I hope we get $50
Some of us have alot of PTO hours. Any guess what's going to happen to them?
If they are empty...(strike price vs Grant) not much we can do...a bidding war might get it above $42 but I think it's doubtful...I hope we get $50