Tag Archives | non qualified stock options

Dan Zajac, philadelphia financial advisor

6 Strategies to Exercise Your Employee Stock Options

The choice to exercise your employee stock options can be a difficult one, regardless of whether you have incentive stock options or non-qualified stock options. Difficult because of the potential complexities of exercise and technical jargon required in the process. Other issues may be particularly paralyzing due to behavioral influences. For example, personal beliefs that the […]

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Dan Zajac, philadelphia financial advisor

Exploring the Details of A Cash Exercise of Stock Options

When it’s time to exercise your employer-provided stock options, you generally have one of two options: a cash exercise or a cashless exercise. You may choose a cash exercise in the hope of achieving preferential long-term capital gains treatment on further appreciation of the stock. In addition, you choose a cash exercise in order to […]

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The Math Behind a Cashless Exercise of Non-Qualified Stock Options

When the time comes to exercise non-qualified stock options, the question of whether to perform a cash exercise or a cashless exercise is a common one. In many cases, option holders default into a cashless exercise—and for good reason. Among other things, a cashless exercise may be an easy option and may result in zero […]

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Exploring Tax Rules for Non-Qualified Stock Options

On the surface, the tax rules associated with non-qualified stock options are relatively straightforward. Upon receipt of non-qualified stock options, no taxes are due. Furthermore, non qualified stock options are not taxable until you exercise the shares. This “exercise control” allows the option owner to defer income tax all the while potentially creating considerable wealth […]

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Dan Zajac, philadelphia financial advisor

The Basics of Non-Qualified Stock Options

Non-qualified stock options are unique in that they retain tax characteristics similar to restricted stock and employee control similar to incentive stock. One might say that they fall right in the middle of these two. From a tax standpoint, gains are subject to ordinary income tax rates.  In terms of control, employees have the ability […]

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stock options exercise

Evaluating 3 Non-Qualified Stock Option Exercise Strategies

Non-qualified stock options (NSOs) are commonly issued to allow employees to participate in the upside potential of a company.  They may also be used as the proverbial “golden handcuffs.”  Golden handcuffs may offer you a substantial value in the future, should you continue to work for your company. Non-qualified stock options are issued at a […]

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