Dear Bud :

I would like to ask a couple questions of you.

Fiduciaries have a duty to advise clients holding substantial positions in employee stock options to understand and reduce risk.

Would you say that an employee holding 10,000 ESOs, with an exercise price of $50 and three years to expiration, has a greater chance of loss with the stock at $75 or at $115? Would you advise risk reduction at $75 or wait till $115?

John Olagues