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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: gdichaz who wrote (26906)	4/13/1999 5:13:00 PM
From: Sawtooth	Respond to of 152472

<<Will exercise some and sell some Would appreciate ideas as to whether to exercise those deepest in the money and sell those less deep or vice versa?>> Basically: Selling those deepest in the money now gives you more cash now but a higher current taxable gain on the sale of the options. Exercising those least in the money costs you more cash to exercise but gives you a higher basis on the deferred taxable gain. Consider whether your tax rate is going to rise or fall over the time you plan on holding the stock, your current cash position and cash needs, time value of money and the opportunity costs of committing the funds. Selling those least in the money now gives you less current cash and less of a current tax consequence on the gain. Exercising those deepest in the money costs you less cash now and defers the larger gain resulting from the lower basis. Again, consider whether your tax rate is going to rise or fall over the time you plan on holding the stock, etc. That's as complicated as it gets for me; you probably have thought those items through already. As a tie breaker, I opt for deferring taxes on gains whenever I can. Looking forward to corrections or other views. ...Tim