July 14, 2020
Should You Exercise and Sell Your Employee Stock Options Right Now? – Daniel Zajac, CFP®
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When to Exercise Your Stock Options? Three Options.

9/18/ · You decide to sit on the stock option for a while until your company’s stock reaches $/share on August 1, , which is when you decide to exercise your options. When you exercise your options, you’ll buy the 2, shares for $40, (the rate of $/share that you . 11/25/ · Some articles say you should hold onto your employee stock options as long as possible. Don't exercise them until they're near their expiration dates. In theory, at least, this gives the stock an opportunity for additional price appreciation. But this may not always be the right advice. 4/5/ · Many places will automatically exercise your options at the expiration date as long as they are “in the money” (the opposite of “underwater”) so you may want to check and see if that’s the case. If not, you’ll want to keep track and make sure you exercise them before they expire. Do you have too much invested in your company stock?

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More like this:

8/12/ · 4 Reasons to Exercise an Employee Stock Option Before the Expiration Date Many people believe that it is wise to wait until just before the expiration date to exercise their stock options and purchase the option shares. And they may be right, under most circumstances. There are times, however, when exercising your options early is a good idea. 3/5/ · Most companies will require that you exercise your vested options within days from the day you leave the company. During this time frame you will need to come up with the money required to exercise your options – the strike price times the number of options you have vested. 2/5/ · A second reason to exercise and sell immediately is if you are risk averse and cannot handle the volatility of a single stock position. A single stock position can move severely in a short period of time. As it does, the value of your employee stock options can .

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Your individual circumstances will determine when the time is right

11/25/ · Some articles say you should hold onto your employee stock options as long as possible. Don't exercise them until they're near their expiration dates. In theory, at least, this gives the stock an opportunity for additional price appreciation. But this may not always be the right advice. 3/5/ · Most companies will require that you exercise your vested options within days from the day you leave the company. During this time frame you will need to come up with the money required to exercise your options – the strike price times the number of options you have vested. 8/12/ · 4 Reasons to Exercise an Employee Stock Option Before the Expiration Date Many people believe that it is wise to wait until just before the expiration date to exercise their stock options and purchase the option shares. And they may be right, under most circumstances. There are times, however, when exercising your options early is a good idea.

When to Exercise Stock Options
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Two types of stock options

8/12/ · 4 Reasons to Exercise an Employee Stock Option Before the Expiration Date Many people believe that it is wise to wait until just before the expiration date to exercise their stock options and purchase the option shares. And they may be right, under most circumstances. There are times, however, when exercising your options early is a good idea. 2/5/ · A second reason to exercise and sell immediately is if you are risk averse and cannot handle the volatility of a single stock position. A single stock position can move severely in a short period of time. As it does, the value of your employee stock options can . 9/18/ · You decide to sit on the stock option for a while until your company’s stock reaches $/share on August 1, , which is when you decide to exercise your options. When you exercise your options, you’ll buy the 2, shares for $40, (the rate of $/share that you .

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Reader Interactions

2/5/ · A second reason to exercise and sell immediately is if you are risk averse and cannot handle the volatility of a single stock position. A single stock position can move severely in a short period of time. As it does, the value of your employee stock options can . 4/5/ · Many places will automatically exercise your options at the expiration date as long as they are “in the money” (the opposite of “underwater”) so you may want to check and see if that’s the case. If not, you’ll want to keep track and make sure you exercise them before they expire. Do you have too much invested in your company stock? 3/5/ · Most companies will require that you exercise your vested options within days from the day you leave the company. During this time frame you will need to come up with the money required to exercise your options – the strike price times the number of options you have vested.