Suppose that you work at some private company and that company offers some stock options to you as part of employment. For the sake of discussion, suppose they offer 100 000 options at $0.50 an option, vesting along a simple schedule of 25 000 options per year.
Things don't work out, and you decide to leave. Again, for the sake of discussion, assume that you leave after two year. Normally, when a person quits, they have thirty days to exercise their stock. So, as that employee, you can do one of the following:
- Exercise your options ($25 000 + taxes)
- The options disappear :(
What other ways can an employee keep the upside of stock options without paying to exercise out of pocket? What services exist to aid in this scenario?