How to decide if I should exercise my options?

New PooChoo
Jun 14, 2018 6 Comments

I've got a good chunk of options from my last company that would cost about $20k to exercise. They haven't changed in value for 2 years, and I see maybe a 25% chance of the company being marginally successful.

Company is not transparent at all about financials, so I'm not really sure what to go on other than gut feel. I only have a week left to decide.

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TOP 6 Comments
  • NAVEX Global HollaBackG
    Make sure you check what the tax implications will be.
    Jun 14, 2018 1
    • New PooChoo
      OP
      FMV is almost equal to exercise price, so tax implications are $0
      Jun 14, 2018
  • Oracle puji66
    And when you ask if you would buy now at current price, consider all the other stocks you could buy with that money too.

    Chances are there are better purchases out there...
    Jun 14, 2018 0
  • Oracle puji66
    If strike is market price then just ask yourself "would I buy this stock right now over the counter at current price?". If yes, then go for it, if no, then they expire, no real harm.
    Jun 14, 2018 0
  • New PooChoo
    OP
    Strike is market, and no sell to cover option because they are not liquid options.
    Jun 14, 2018 0
  • Oracle puji66
    Is sell to cover an option here or are is your strike essentially market value at this point?
    Jun 14, 2018 0