O'Reilly logo

Ten Minute Guide to Employee Stock Option Purchase Plans by Ken Little

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Chapter 8. Exercising Your Options

In this lesson, you will learn how to exercise your options and how to pay for the stock.

The Process

Exercising your employee stock options is not a complicated process. Your option agreement should spell out exactly what you need to do.

It is important to understand exactly what the process is and how long it takes. This can be especially important if the underlying stock is volatile. Many high-tech stocks can have big swings in the price in one day of trading. It is not uncommon for the stock price to fluctuate 10 points or more in a single day and that could mean trouble if you were counting on a specific price.

Tip

Exercising stock options is usually fairly simple; however, be sure you understand how the process ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required