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  1. I have a certain amount of stock options (NSO) that I can acquire at the startup I work for. For personal reasons, I will have to eventually leave the company. I do believe in the company, and the price at which I can exercise is very low.

  2. I am a complete newbie when it comes to stock options. I was convinced that I had to sell the shares to a third party in a given limited time, while instead it looks like that's just the exercise period.

My first question would be, does it make sense to hold onto stocks that might eventually have a certain value or will I find myself paying taxes year after year? I am based in Europe (Belgium).

My second question would be related to point 2. Does such a thing exist or was I confused? The agreement is about 30 pages in lawyer language so I am not super confident in what I am inferring.

Thank you.

Chris W. Rea
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the_camel_of_lies
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1 Answers1

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Ask yourself a couple questions -

Do you have enough capital to exercise those options?

Do you want to hold the stock past the option expiration date?

As long as the options are ITM (in the money) at expiration, you have the capital to exercise, and you want to hold long term then keep your options.

You could make more money off theta if the stock is/goes public and sky rockets at some point like GME. That would be a great time to sell those options early but other than that you can wait to exercise at expiration. Then hold the shares long term to avoid short term capital gains tax.

RAZ_Muh_Taz
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