When should I cash out my stock options? I have 400 @ $35 now worth $41 So I net $6 each.?
Answers:
Not enough info to answer the question. Which company is it? Since you work there, you should have a good idea where the company is headed. Will they be making more money or less over the next few years. Also when do the options expire? Do you need the money now?
You already understand the math. Do you understand greed?
The typical option is good for 10 years. If it's 6 bucks net times the 400 shares = 2400.00 minus the taxes you pay, the real pocket money won't be much. If you need it you need it, but if you don't need it leave it there for a while. If it's close to expiring, then pull the trigger before you do lose it.
Either way it's more than you had.
there is no definitive answer, but if the company looks promising, I would wait until the stock trends up on a weekly basis and then sell when the upward trend is broken. (i.e. starts heading down). I would try to sell them at least a year before expiration, the reason being, that a year is not a long time for a recovery of stock price. Also, be cognizant that your options are most likely NSOs (non-qualified Stock options) so the difference between the strike price and exercise price will be taxable to you at you marginal tax rate and will be reported on your W-2, not as a long-term capital gain.
dude, if you had no plan when you got in you should get out now. how can you put up that much cash without knowing what you expect. I agree with parisbound, get out before greed/fear takes you to the cleaners. it's a number 1 cause of traders failure, next to lack of knowledge and planning.
Before they expire.
The answers post by the user, for information only, BAnswer.com does not guarantee the right.
More Related Questions and Answers...