? For Jetblue Pilots

[lostplnetairman]

It looks like they made a bundle if they sold it the first day. After that...I posted the stock history.

 

[ultrarunner]

http://www.washingtonpost.com/wp-srv/liveonline/02/business/alexander/business_neeleman061202.htm

They had the ability to purchase shares at $23/share. One has to have the cash to make the purchase, however, and it is a taxable event.

Those are the 'stock options' Lost. And the 23 bucks a share is the 'strike price'.

You only need cash to purchase options if they are getting close to their expiration date, and you want them.

Other than that, you simply do a 'same-day-exercise-sale'. Provided the options are not 'under water'.

But a 23 dollar stock option went quickly underwater.

 

[bluechunks]

It looks like they made a bundle if they sold it the first day. After that...I posted the stock history.

Bingo.

Here's the gotcha: the JetBlue options vested over time, and all the pre-IPO employees were also under a trading blackout for a period following the IPO (SEC rules.) They watched the stock zoom and could not exercise a single option.

Eventually a small number of pilots did very very well on some of their options when the blackout ended and their options were vested, but they were the exception and not the rule. Lots of pilots were sitting on enormous paper gains for a while but by the time the options vested they were under water.

Nobody retired early from the gains, although some pilots bought some pretty cool "toys" and more than one had a nice down-payment for a new house.

 

[AKAAB]

Bluechunks...

+1

 

[CosmoKramer]

Thanks for the quality info!!!!! Much appreciated.

 

[Bavarian Chef]

Been hear almost 5 years, have 9000 options at 12.76 and barely 6 years before they expire.

I expect to see nothing.

Who gives a sheet about the original question. Stock options are no longer issued to new pilots, so stock options have not been addressed in any of our PCG, PCRB or other alphabet soup pay and benefits analyses. Company position.

 

[CosmoKramer]

Been hear almost 5 years, have 9000 options at 12.76 and barely 6 years before they expire.

I expect to see nothing.

Who gives a sheet about the original question. Stock options are no longer issued to new pilots, so stock options have not been addressed in any of our PCG, PCRB or other alphabet soup pay and benefits analyses. Company position.

The question was asked because Spirit is voting on ratifying a contract that does not include any stock options when they go public. Some people here "give a sheet" because we would are pre-ipo employees and want to gauge how well the pre-ipo jetblue pilots did. 6 years is a long time, you still may be able to cash some in and add a pool to your house someday...

 

[Bavarian Chef]

The question was asked because Spirit is voting on ratifying a contract that does not include any stock options when they go public. Some people here "give a sheet" because we would are pre-ipo employees and want to gauge how well the pre-ipo jetblue pilots did. 6 years is a long time, you still may be able to cash some in and add a pool to your house someday...

If stock options are on your TA, I wouldn't count on them. THAT's MY POINT. They're not (from your quote above), so you won't (count on them).

In 6 years, JB will either be bought or merged or middling along at 5-7 bux like it has for the last few years. Mark my post now.