etrade /cvs options

[sosoo]

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i believe there should be a link somewhere in etrade to accept cvs stock options grant for this year. does anyone know how to get there? i saw the link to "grant acceptance" but i don't see anything to sign or review /etc.

 

[abcpharm]

i believe there should be a link somewhere in etrade to accept cvs stock options grant for this year. does anyone know how to get there? i saw the link to "grant acceptance" but i don't see anything to sign or review /etc.

Where's the link at ? I didn't even see the link

 

[SClENCE]

How does the stock option work? You get the stock at 15% discount and have to hold it for 2 years correct? Is the 15% discount based at the time you accept it or what? Is the stock option within the 401k or do you just buy it with your own cash as an investment? How much stock can you buy? Do staff pharmacists get stock options or just PIC?

Sorry for so many questions lol!

 

[sosoo]

the 15% discount is optional ESPP purchase. u can sell it after 1 year, except it will be taxed as short term.... 401k has option for u to invest in cvs stocks also, simply specify the percent u want to weigh in...... stock options are grants given every two years by company, awards of $1,000 worth of company stocks.

etrade has the "grant acceptance" on the homepage at the bottom after u log in.

 

[SClENCE]

Its's only 1k worth of stocks every 2 years? So you get a $150 dollar discount every 2 years if you want to buy the stock. Doesn't seem very significant. Unless you mean that the 15% discount can be up to $1,000 meaning you can buy $6,667 worth of stock for $5,667?

And if you sell it within 1 year you just pay income tax on the total value of the stock? How does the taxing change if you hold it for over 2 years?

And the ability to purchase CVS stock within your retirement plan is unrelated to ESPP correct?

 

[zelman]

Stock options are like a bonus, so it's $1k free. The ESPP is a %of your paycheck taken out to buy stock at a discount. Two separate things.

 

[owlegrad]

I couldn't activate my account so I called eTrade and they said CVS hasn't purchased the stocks yet and to expect them sometime in May. Anyone else having this problem?

 

[PharFromNormal]

Little clarity on options vs. restricted stock awards...

True "stock options" typically means you've been granted an option to purchase a set amount of stocks at the issue date price on or after the date of vestment. For example if today you were granted $1k in options and your company was priced at $50/share you would have 20 options at $50. Typically you have a vesting period, for this example we will use 2 years. 2 years rolls around and your options are vested. Currently the stock price is $100/share. If you execute the options you purchase 20 shares (at cost of $50/share) for $1000. You now have the option to immediately sell them (at cost of $100/share) for $2,000. This gives you (a still untaxed gain) of $1,000. I won't get into the tax rules but hopefully this explains pure options more.

There are also stock grants where you may recieve for example $1k in restricted stock awards. In this situation you would recieve 20 shares of stock (based on the award date price of $50). After vestment period elapses the 20 shares are yours at whatever the price of the stock.

Options can be great if you believe in the growth of your company, but if the price plummets the value of the option kind of goes out the window. Stock grants can be great for the one receiving as atleast you'll get something but the company loses a little in using a financial incentive to align their employees with growth of the company.

If any investment/more sophisticated financial person wants to correct me on anything or go into more detail feel free.

 

[SClENCE]

Little clarity on options vs. restricted stock awards...

True "stock options" typically means you've been granted an option to purchase a set amount of stocks at the issue date price on or after the date of vestment. For example if today you were granted $1k in options and your company was priced at $50/share you would have 20 options at $50. Typically you have a vesting period, for this example we will use 2 years. 2 years rolls around and your options are vested. Currently the stock price is $100/share. If you execute the options you purchase 20 shares (at cost of $50/share) for $1000. You now have the option to immediately sell them (at cost of $100/share) for $2,000. This gives you (a still untaxed gain) of $1,000. I won't get into the tax rules but hopefully this explains pure options more.

There are also stock grants where you may recieve for example $1k in restricted stock awards. In this situation you would recieve 20 shares of stock (based on the award date price of $50). After vestment period elapses the 20 shares are yours at whatever the price of the stock.

Options can be great if you believe in the growth of your company, but if the price plummets the value of the option kind of goes out the window. Stock grants can be great for the one receiving as atleast you'll get something but the company loses a little in using a financial incentive to align their employees with growth of the company.

If any investment/more sophisticated financial person wants to correct me on anything or go into more detail feel free.

So In option #1 you are paying 1k for the stocks, in option #2 the company is just giving you 1k worth of stock for free? I don't think it's really clear to me. How is option #1 any different than me just buying the stock right now? Where does the 15% discount come into play?

 

[PharFromNormal]

So In option #1 you are paying 1k for the stocks, in option #2 the company is just giving you 1k worth of stock for free? I don't think it's really clear to me. How is option #1 any different than me just buying the stock right now? Where does the 15% discount come into play?

In option 1 if the stock price drops, you don't have to excercise the option and you don't lose money. If you bought now at 50 and it dropped to 25 you lose. If it dropped to 25 and had options you don't have to use the option.

Yea to option 2, usually if you remain an active employee through the vesting period.

I don't know cvs's policies on their ESPP but I know some techs that have it so I assume it's available for all full time employees. Generally, an ESPP is a benefit but not a performance reward like cash bonuses, options, restricted stock etc.

Over a period of time called a purchase period (let's use 6 months) an employee contributes a % of their paycheck (posttax) for the ESPP. At the end of purchase period the company provides stock at a discounted rate off of the lowest available stock price during that 6 months. All the contributions made are executed at that discounted share price and the employee gets that many shares. Usually this has to vest and time periods must occur to avoid some tax penalties but all in all if you feel the company is growing and the % discount is a lot (if it really is 15% seems like a no brainier) then I'd recommend.

Looking at CVS's growth in a year is pretty impressive and then tack on an additional 15%? Wish I could get in on that action. Seems like some positive ROI.

 

[zelman]

In option 1 if the stock price drops, you don't have to excercise the option and you don't lose money. If you bought now at 50 and it dropped to 25 you lose. If it dropped to 25 and had options you don't have to use the option.

Yea to option 2, usually if you remain an active employee through the vesting period.

I don't know cvs's policies on their ESPP but I know some techs that have it so I assume it's available for all full time employees. Generally, an ESPP is a benefit but not a performance reward like cash bonuses, options, restricted stock etc.

Over a period of time called a purchase period (let's use 6 months) an employee contributes a % of their paycheck (posttax) for the ESPP. At the end of purchase period the company provides stock at a discounted rate off of the lowest available stock price during that 6 months. All the contributions made are executed at that discounted share price and the employee gets that many shares. Usually this has to vest and time periods must occur to avoid some tax penalties but all in all if you feel the company is growing and the % discount is a lot (if it really is 15% seems like a no brainier) then I'd recommend.

Looking at CVS's growth in a year is pretty impressive and then tack on an additional 15%? Wish I could get in on that action. Seems like some positive ROI.

Espp at cvs doesn't give you the shares at the lowest price during the offering period. It's the price when the period started or ended, whichever is lower. Otherwise, this.

 

[Aznfarmerboi]

In option 1 if the stock price drops, you don't have to excercise the option and you don't lose money. If you bought now at 50 and it dropped to 25 you lose. If it dropped to 25 and had options you don't have to use the option.

Yea to option 2, usually if you remain an active employee through the vesting period.

I don't know cvs's policies on their ESPP but I know some techs that have it so I assume it's available for all full time employees. Generally, an ESPP is a benefit but not a performance reward like cash bonuses, options, restricted stock etc.

Over a period of time called a purchase period (let's use 6 months) an employee contributes a % of their paycheck (posttax) for the ESPP. At the end of purchase period the company provides stock at a discounted rate off of the lowest available stock price during that 6 months. All the contributions made are executed at that discounted share price and the employee gets that many shares. Usually this has to vest and time periods must occur to avoid some tax penalties but all in all if you feel the company is growing and the % discount is a lot (if it really is 15% seems like a no brainier) then I'd recommend.

Looking at CVS's growth in a year is pretty impressive and then tack on an additional 15%? Wish I could get in on that action. Seems like some positive ROI.

The ROI on ESPP is about 10k every year assuming you sell it right away. (You can only purchase 25k per year max).

I got a 3k return from my free stock option when I sold it two years ago. I am going to sell some more come August.

 

[WVUPharm2007]

I couldn't activate my account so I called eTrade and they said CVS hasn't purchased the stocks yet and to expect them sometime in May. Anyone else having this problem?

I'm glad I'm not the only one. I was all "WTF?"

 

[redmuskan]

My first Etrade options should have appeared in June-July and its Novemeber and I am not sure how to go about finding stock options that I am given. How long did it take for you guys for these options to appear in your account?

 

[sosoo]

best to call HR to find out for sure. but i think (not completely certain) its given to everyone every other year, so next up is 2017? call HR...... also you can ask again during your annual review with district supervisor around march. they usually have a print out with the grant acceptance for etrade.