4 ms·

There really isn't much tax liability for exercising options when the fair market price is still minimal unless you have an awful lot of them.

• jjav 3y ago
  You'd want to buy when exercise price and FMV price are the same, so quantity doesn't matter.
  • robocat 3y ago
    Returns are highly skewed. If your prior is: exercise price and Fair Market Value are equal, my bet would be that the shares are most likely loser shares. Winning shares are much more likely to have a fair market value that exceeds the option exercise price. The rules of the game are written by the winners!
    • jjav 3y ago
      > Winning shares are much more likely to have a fair market value that exceeds the option exercise price. You can't have that, options can't be granted below FMV. See e.g. https://rsmus.com/insights/services/business-tax/stock-options-and-section-409a-frequently-asked-questions.html https://rsmus.com/insights/services/business-tax/stock-optio... "The exercise price may never be less than the fair market value (FMV) of the underlying stock on the date the option is granted." If you are able to early exercise, the exercise price and the FMV can be the same though. Which is ideal since the taxable delta is then zero and you file the 83(b).