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Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?


To: bacchus_ii who wrote (81260)6/1/2002 2:17:55 PM
From: semiconengRead Replies (2) | Respond to of 275872
 
With the IRS rule that force you to assume profit in the year you exercise an option and at the exercise price, nobody would take a chance to keep those shares if expiration time was forcing you to exercise.
Gottfried


Nothing says you have to sell the stock when your options are about to expire. You can send the Managing Broker enough money for the Option Grant Price, and they will issue you the Shares. You wouldn't have to pay any Capital Gains taxes until you sold the shares. Of course, if you "Think" (or know) that the stock is about to crash, then you exercise the Options, sell, and pay the Capital Gains Tax on the difference between the Grant Price, and the Sale Price.

Semi