Stock Options - When to cash in

Discussion in 'Off-Topic Discussions' started by JoAnnP38, Feb 18, 2004.

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  1. JoAnnP38

    JoAnnP38 Member

    As part of my long term plan for financing my PhD, I've got a couple of different savings accounts, I've got a house I bought in 1997 in which I now have considerable equity due to the housing boom and I have a considerable amount of stock options in which I'm currently underwater, but after the runup on the market -- just barely. These stock options will expire in 2010. For you MBA/DBAs out their, what strategy should I use for exercising my options? Should I let them ride until the last minite? Or, should I exercise them prior to that and reinvest the money somewhere else? Any free advice?
     
  2. Tom57

    Tom57 Member

    JoAnn,

    It's a tough call that depends on a lot of factors (the stock itself, and the outlook for the company, your own needs for cash, taxes, alternative investments etc.).

    Here's a site that I've heard some good things about. Also search on "Tim Kochis". He's a nationally known financial planner who specializes in incentive stock option issues. He has an article on the the website (I think you have to register first)>

    http://www.mystockoptions.com/home/home.cfm

    I hope this helps.

    Tom
     

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