As I recall, by exercising now, if Ray holds the shares for 12 months, they will be considered long term gains for Federal Income Tax purposes. So if he thinks the shares will be worth a lot more a year from now, might as well pick up the shares now.
He could realize some money a year from now on a long term tax basis and still have alot options to exercise at some future date. Sounds to me like a very prudent strategy if he believes the stock is going up!
News 
Market Data 
Discover 
