Exercise Strategy & Timing
Exercise timing, pre-IPO decisions, option valuation, exercise financing and what happens to your options if you leave.
- When should I exercise my stock options?In depth
There's no single rule for when to exercise stock options. It depends on concentration, remaining time value, and your cash-flow needs.
- Should I exercise my stock options before an IPO?In depth
Exercising stock options before IPO means paying now for an illiquid, uncertain asset. Here's the real trade-off, with worked numbers.
- Stock option valuation and Black-Scholes
Your options are worth more than the current spread. Understanding option value stops you from exercising too early.
- Exercise financing explained
Third-party financing lets you exercise without your own cash, in exchange for a share of the upside.
- What happens to your options if you are laid off?
Unvested options are usually forfeited, and vested options usually come with a short exercise window.