ISO & NSO Basics
Incentive stock options, non-qualified stock options, strike prices, the $100k rule and early exercise — explained in plain English.
- ISO vs NSO: what's the tax difference?In depth
ISOs and NSOs are taxed completely differently. See who can get each, when tax hits, and a full worked example comparing both.
- What is a stock option strike price?In depth
The strike price is the fixed price you pay per share to exercise your options. Learn how it's set, why it never changes, and how to find yours.
- Incentive stock options (ISOs) 101
ISOs are the tax-favoured option type available only to employees. Here is how they vest, exercise and qualify.
- Non-qualified stock options (NSOs) 101
NSOs are the simple, flexible option type: ordinary income at exercise, capital gains after.
- What is the $100k rule for stock options?In depth
Only $100,000 of ISOs (valued at grant) can vest per year. Learn how the $100k rule splits your options into ISO and NSO portions.
- How does an early exercise option work?
Early exercise lets you buy unvested shares now, starting the capital gains clock while the spread is small or zero.