Friday, July 03, 2020 9:35:13 AM
How do I exercise my stock options?
Depending on your company, there may be a variety of ways you can exercise your options:
Pay cash (exercise and hold): You use your own money to buy your shares and keep all of them. This is the riskiest method because you’re not guaranteed to make a profit (or even get your money back). Plus, your money is tied up in your shares until you sell. However, it could pay off if your shares end up being worth a lot.
Cashless (exercise and sell to cover): If your company is public or offering a tender offer, they may allow you to simultaneously exercise your options and sell enough of your shares to cover the purchase price and applicable fees and taxes. You can do whatever you want with the remaining shares—keep the rest or sell some.
Cashless (exercise and sell): If your company is public or offering a tender offer, they may allow you to exercise and sell all your options in one transaction. Some of the money from the sell covers the purchase price plus applicable fees and taxes, and you pocket the rest of the money.
https://carta.com/blog/exercising-stock-options/#when
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