Questions tagged [option-exercise]

In options trading, the option holder has the right but not the obligation to buy or sell the underlying instrument at a specified price on or before a specified date in the future. Exercise means to put into effect the right specified in an option contract.

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If my ISOs are converted to NSOs, do I still have 90 days to exercise my vested options as ISOs?

Let's say I have a bunch of incentive stock options (ISOs) in a company that have vested but I have not exercised yet. If I were to leave the company, I have 90 days to exercise them with ISO tax ...
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369 views

Exercise a stock option in a US-based company as a non US tax resident

I'm given 1000 stock options (all vested) at $100 strike price per option. Current stock valuation is $1000 per share. As I understand, if I exercise I'll pay $100K out of my pocket and I'll also get ...
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527 views

Can you keep exercised EMI options after leaving a company?

I'm fairly unknowledgeable regarding financial matters, so any help would be greatly appreciated. I have been granted EMI options with my current employer, half of which have vested. The company is ...
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1answer
64 views

If I have a fixed amount to invest, should I exercise and hold NSOs or ISOs of my company?

I am trying to play some scenarios to compare opportunity costs and hopefully decide on which route, to maximize my gains (after all taxations). I formulated a spreadsheet to help me calculate a few ...
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What tax forms should I expect if I exercise and sell options from a company where I am no longer employed?

This article suggests that if I were to exercise options that I was granted as part of an ISO grant and then sell them in the same year, the bargain element would be recorded in my W-2 form. What ...
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1answer
888 views

No margin account and put expires ITM

This question is a followup to a recent and similar question on buying a put: When a long PUT expires in-the-money, whose shares are being sold?. Suppose I don't have a margin account, and I buy a ...
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94 views

Selling employee stock options now and waiting for Long Term Capital Gains or selling later

I've got some options that I'm looking to exercise and am trying to figure the best way to go about it. I always thought that exercising options and then waiting for long-term capital gains was the ...
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36 views

Availability of proceeds from the exercise of a long put

If I bought a put option in a cash account, it expired ITM and was exercised automatically on Friday, could I use the proceeds on Monday or would I have to wait T+2 working days until Wednesday for ...
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43 views

Hedging warrants & cashless exercise

For a given SPAC where the strike on the warrants is 11.50 and each warrant translates to 1 common share, if the company opts for cashless exercise and announces it will deliver 0.37 shares for each ...
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2answers
297 views

Does options exercise increase a stock's trading volume?

When I buy or sell a stock, the transaction will increase the stock's trading volume. Instead, suppose I buy an option and decide to exercise it immediately (for whatever reason). When I exercise a ...
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90 views

Can any European-style options be exercised before expiration?

I found a page that says the following about European-style options (in the context of weekly and end-of-month options for S&P 500 futures): European-style options can be exercised only on the ...
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175 views

What happens to long otm oex puts if you exercise them?

Since OEX index options are cash settled and are American style, what would happen if you decided to exercise an out of the money put? Would you end up paying the difference between the strike and ...
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Options Help - Partial allocation of shares?

I'm still learning options trading and got into it recently on Robinhood - but I have a few quick questions. I have 2 contracts for ACB $12.5 Put 9/4. When I go through the steps to exercise it, I ...