Exercising stock options means purchasing the option stock granted to you at the exercise price , grant price , or strike price , which means you now own common stock of the company. Prior to exercising your stock options, you did not technically own common stock in the company.
What is the best way to exercise stock options?
There are three main strategies you can take when you exercise your stock options:
- Cash for stock: Exercise-and-Hold. You purchase your option shares with cash and hold onto them. ...
- Cashless: Exercise-and-Sell. You purchase your option shares and then and immediately sell them. ...
- Cashless: Exercise-and-Sell-to-Cover.
Can you exercise stock options?
Exercising a stock option means purchasing the issuer's common stock at the price set by the option (grant price), regardless of the stock's price at the time you exercise the option.
