Fundamentally, an option is actually a protection bought from 1 Trader to a different. The choice buyer pays a top quality to the choice author (the individual selling the derivative).

Also, look at how the equity impacts your overall economic position. By way of example, you may want to promptly promote shares from RSUs and ESPSs and utilize the proceeds to click here diversify your portfolio. Or else, your money and a big percentage of your portfolio could count on an individual firm's good results.