Advanced Micro Devices - Moderated (AMD) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 256.70

+1.2%

1:04 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: DRBES who wrote (155521)	4/10/2005 8:06:58 PM
From: Petz	Read Replies (4) of 275872

re: <gratuitously early execution of options> I did not realize that early exercise, as Hector has done, results in immediate tax liability taxed at ordinary income rates. (PS, it is probably even worse than that, since this income is for-sure taxed at even-higher-than-ordinary "AMT" rates.) Obviously he doesn't expect the stock to go down. If the exercise price is $10 and it is currently at $16, he loses 35-45% (depends on state) of the $6 profit to taxes immediately, but if the stock goes to $50, the taxes on the additional $34 profit will be half as high compared to holding the options until then. Do any of the online services that evaluate insider buying/selling make note of whether option exercises are done earlier than they have to be? Petz

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next