Scripts for modeling the value of vesting stock options
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Early employee option pricing.ipynb
README.md
options.py
plot_sensitivity.py
plot_trajectory.py
requirements.txt

README.md

Scripts for modeling the value of vesting stock options

These scripts provide the Python source code for the model in this blog post, which compares the expected value of a job offer from a startup (with stock options and lower cash compensation) to that from a big company.

If you want to use this to look at your own offer, here's where to go:

  1. Make a python 3 virtualenv.
  2. pip install -r requirements.txt
  3. Open options.py. Edit the COMMON_PARAMS dict with the parameters from your offer. Edit the calls to sensitivity_analysis at the end to control how the parameter space is explored in the sensitivity analysis.
  4. Run python options.py to get the expected value of the offer and produce a sensitivity analysis.
  5. Run python plot_trajectory.py to produce the equivalent of that post's first plot (heatmap trajectory of valuations, when you should quit, and probability of staying).
  6. Run python plot_sensitivity.py to produce the equivalent of that post's second and third plots (analysis of sensitivity to various parameters).