Should I exercise an option immediately to buy stock that is still subject to vesting and a company repurchase right? What is the risk?

Early exercise gives employees who can pay the exercise price the opportunity to start their capital gains holding period early. If your plan permits this strategy, it makes sense in certain situations, such as...

For access to this answer, please sign in or register.

Forgotten your username or password?

This feature is a benefit of Premium membership.

Registering as a Premium member will give you complete access to our award-winning content and tools on stock options, restricted stock/RSUs, SARs, and ESPPs.

Who becomes a Premium Member? See our long list of paid subscribers.

Are you a financial or wealth advisor? Learn more about MSO Pro Membership.

View Homepage