Weddingbee boards

Stock options are basically the option to purchase a stock at a certain price for a certain amount of time.  This is a good deal if you get a good option price (ex. $25) and the price of the stock is at something high when you exercise the option (ex $100).  Then you get a profit of $75 on every option you exercise and sell.  I would be wary of putting too much of your money in your company's stock.  You are already depending on them to provide a paycheck, you don't want to lose all your money too if something were to happen to your company (like Enron).  I think advisors say to have less than 10% of your retirement assets in your company stock or options.

I would put enough money into your 401k to get a match if there is one, then try to contribute the max to a ROTH IRA for both of you ($5k each) every year.  Then after that you could use some money to buy options and put more in your 401k.