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I’m Ready To Exercise My Company Stock Options. What’s Next?
 
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So you've been rewarded for a job well done with some company stock options. Congratulations! In my previous episode of No Dumb Questions, I explained ways you might want to fit this new investment into plans for your financial future. Today I'm going to explain some things to consider once you've exercised that option. Share your experience with company stocks in the comments below! Don't forget to watch my previous video What Are Stock Options? For more context: https://youtu.be/MSDFmWNmxBs Watch What's a Smart Strategy When Investing? https://www.youtube.com/watch?v=jJLWsWSqR_8 ------------------------ Visit PWL Capital: http://www.pwlcapital.com/ottawa Follow PWL Capital on: - Twitter: https://twitter.com/PWLCapital - Facebook: https://www.facebook.com/PWLCapital - LinkedIN: https://www.linkedin.com/company/105673 Follow Nancy Graham on - Twitter: https://twitter.com/NancyGrahamPWL - LinkedIN: https://www.linkedin.com/in/nancy-graham-cpa-ca-cfp-cim-4579aa8
Options Exercise Process
 
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http://optionalpha.com - Video Tutorial on Options Exercise Process ================== Listen to our #1 rated investing podcast on iTunes: http://optionalpha.com/podcast ================== Download a free copy of the "The Ultimate Options Strategy Guide": http://optionalpha.com/ebook ================== Still working a day job? Then our "Take 5" segment is for you. 5 mins videos each day on 1 thing you can apply trading options: http://www.youtube.com/playlist?list=PLhKnvfWKsu40z0EnsX0TNqCgUzb8tmM04 ================== Start our 4-part video course (HINT: these videos are NOT posted anywhere else online): http://optionalpha.com/free-options-trading-course ================== Just getting started or new to options trading? Here's a quick resource page we made that you'll love: http://optionalpha.com/start-here ================== Register for one of our 5-star reviewed webinars: http://optionalpha.com/webinars ================== - Kirk & The Option Alpha Team
Views: 12347 Option Alpha
Exercising (Options)
 
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What does exercising mean? When should I exercise and what is the math involved? What are the basic tax implications?
Views: 16645 Quatere
How To Exercise A Call Option
 
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http://optionalpha.com - It's very easy to exercise a call option and in this short video I'll show you exactly how and why you would want to do it if you are assigned short stock on a vertical credit spread like we were in WFC. ================== Listen to our #1 rated investing podcast on iTunes: http://optionalpha.com/podcast ================== Download a free copy of the "The Ultimate Options Strategy Guide": http://optionalpha.com/ebook ================== Still working a day job? Then our "Take 5" segment is for you. 5 mins videos each day on 1 thing you can apply trading options: http://www.youtube.com/playlist?list=PLhKnvfWKsu40z0EnsX0TNqCgUzb8tmM04 ================== Start our 4-part video course (HINT: these videos are NOT posted anywhere else online): http://optionalpha.com/free-options-trading-course ================== Just getting started or new to options trading? Here's a quick resource page we made that you'll love: http://optionalpha.com/start-here ================== Register for one of our 5-star reviewed webinars: http://optionalpha.com/webinars ================== - Kirk & The Option Alpha Team
Views: 15136 Option Alpha
Stock Options (Issuing, Exercising & Expired Options, Compensation Expense, PIC Options)
 
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Accounting for stock options issued, exercised & some options expired using the fair value pricing model which uses the stock option price rather than the stock market price as the accounting basis, using the fair value option method the stock price established by the market has no relevance for accounting, the option price is used for accounting, granting the stock options requirs recording compensation expense on the income statement and recording paid-in capital (stock options) equity account for the associated to the expense, upon exercising the options the PIC-Stock Options is reduced and transferred to common stock issued and the associated APIC-Common Stock, terminated options are transferred from PIC-Stock Options to PIC-Expired Stock Options (Re-titles PIC account), example 1-Granted options to executives to purchase 10,000 shares of $5 par Common Stock, 2-Options granted (1/1/X1) & were exercisable 2-yrs after date granted if still employeed by company, with 2-yr vesting (service) period, 3-Option price set at $40/shr, compensation expense $900,000 based on Fair Value Pricing Model, 4-Following Stock Option activities: a. 9,000 options were exercised on (5/1/X3) when market price $60/shr, b. The remaining 1,000 options expired (1/1/X4), company set this expiration date & the employees decided not to exercise their options, detailed accounting by Allen Mursau
Views: 9676 Allen Mursau
Stock Market : How to Exercise Stock Options
 
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The best way to exercise stock options is to use online trading to get out at a precise point by entering such instructions. Set up instructions ahead of time with a stock broker with help from a personal asset manager in this free video on investing in the stock market and money management. Expert: Roger Groh Bio: Roger Groh is the founder of Groh Asset Management. Filmmaker: Bing Hu
Views: 3228 ehowfinance
Exercise and Assignment | Options Trading For Beginners
 
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Understanding exercise and assignment is important for new options traders. In this video, we discuss both exercise and assignment in-depth. More specifically, you'll learn what happens calls and puts are exercised, and what happens to traders who are short those options. Additionally, you'll learn how extrinsic value is lost when an option is exercised, and how traders are chosen to be assigned on their short option positions. Lastly, you'll learn how to assess the likelihood of early assignment on a short option position. ---- Sign up for our FREE newsletter to receive our options trading research collection: https://www.projectoption.com Premium Options Trading Courses: https://www.projectoption.com/options-trading-courses/ ---- Music: You're No Help - Silent Partner https://youtu.be/wK6bwkuUYRo
Views: 4390 projectoption
What are Stock Options - How to Trade Options and Make Money
 
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What is a Stock Option? A stock option is the right or “option”, but not the obligation, to buy or sell a stock at an agreed upon price by an agreed upon date. Typically, 1 option represents 100 shares of the underlying stock. There are two types of options. Put options and Call Options. You buy call options when you believe the price of the underlying stock will rise in value. You would buy a put option when you believe the underlying stock will fall in value. The advantage to investing in options is they have the potential for enormous games relative to buying the just the underlying stock. With this potential comes enormous risk as well. Key terms Call options: You believe the underlying stock will rise in value Put Options: You believe the underlying stock will fall in value Strike Price (aka target price): the agreed upon price in which the option can be exercised at. Expiration Date: The date on which the “option” expires. The transaction must be completed by this date. ★☆★ Subscribe: ★☆★ https://goo.gl/qkRHDf Investing Basics Playlist https://goo.gl/ky7CJq Investing Books I like: The Intelligent Investor - https://amzn.to/2PVhfEL Common Stocks & Uncommon Profits - https://amzn.to/2DAV8h9 Understanding Options - https://amzn.to/2T9gFSp Little Book of Common Sense Investing - https://amzn.to/2DfFGG2 How to Value Exchange-Traded Funds - https://amzn.to/2PWSkRg A Great Book on Building Wealth - https://amzn.to/2T8AKZ1 Dale Carnegie - https://amzn.to/2DDAk8w Effective Speaking - https://amzn.to/2DBncAT Equipment I Use: Microphone - https://amzn.to/2T7JxL6 Video Editing Software - https://amzn.to/2RQM1vE Thumbnail Editing Software - https://amzn.to/2qIUAgP Laptop - https://amzn.to/2T4xA8Z DISCLAIMER: I am not a financial advisor. These videos are for educational purposes only. Investing of any kind involves risk. Your investments are solely your responsibility. It is crucial that you conduct your own research. I am merely sharing my opinion with no guarantee of gains or losses on investments. Please consult your financial or tax professional prior to making an investment. #LearnToInvest #StocksToWatch #StockMarket
Views: 18270 Learn to Invest
Bill Poulos Presents: Call Options & Put Options Explained In 8 Minutes (Options For Beginners)
 
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Bill Poulos and Profits Run Present: How To Trade Options: Calls & Puts Call options & put options are explained simply in this entertaining and informative 8 minute training video which uses 2 cartoon-based scenarios to help you learn how to trade call options and how to trade put options. If you've ever been confused by calls and puts in the past, this video will clear up any confusion you may have had. Also, if you're looking to learn how to trade options, you will learn some simple options trading strategies in this short video. For more training, get my free "dummies" guide to options trading here: http://www.prtradingresearch.com/simple-options-youtube3
Views: 1412271 Profits Run
Employee Stock Options: Taxes
 
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Understand the tax fundamentals of employee stock options to make the most of these grants, with expert insights in this video from the editor-in-chief of http://www.myStockOptions.com. Featuring animated examples, this video covers how taxes are calculated for nonqualified stock options (NQSOs), what types of taxes apply to NQSOs, how withholding works, and capital gains taxes at sale.
Views: 4463 myStockOptions
Holding An Option Through Expiration | Options Trading Concepts
 
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When an option is held through expiration, the broker will automatically exercise it and turn it into long or short shares, depending on the strategy. Let @tastytraderMike walk through some of the possibilities, and some things to be concerned about as well! New to options trading? Mike breaks down trading strategies and concepts in a visual way for beginner to intermediate investors. Follow: @tastytradermike ======== tastytrade.com ======== tastytrade is a real financial network, producing 8 hours of live programming every weekday, Monday - Friday. Follow along as our experts navigate the markets, provide actionable trading insights, and teach you how to trade. With over 50 original segments, and over 20 personalities, we’ll help you take your trading to the next level, whether you are new to trading or a seasoned veteran. http://ow.ly/EbzUU Subscribe to our YouTube channel: https://www.youtube.com/user/tastytrade1?sub_confirmation=1 Follow tastytrade: Twitter: https://twitter.com/tastytrade Facebook: https://www.facebook.com/tastytrade LinkedIn: http://www.linkedin.com/company/tastytrade Instagram: http://instagram.com/tastytrade
Views: 13660 tastytrade
Early Exercise of Call Options
 
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Beginning traders often think that they should exercise in-the-money calls before expiration, but that is rarely the case.
Views: 10634 InvestorPlace
Stock Options (Issuing & Exercising Options, Compensation Expense, Paid-In Capital Options)
 
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Accounting for stock options issued and exercised using the fair value pricing model which uses the stock option price rather than the stock market price as the accounting basis, using the fair value option method the stock price established by the market has no relevance for accounting, the option price is used for accounting, granting the stock options requirs recording compensation expense on the income statement and recording paid-in capital (stock options) equity account for the associated to the expense, upon exercising the options the PIC-Stock Options is reduced and transferred to common stock issued and the associated APIC-Common Stock, example On (11/1/1) Corp-A adopted a Stock Option Plan: 1-Granted options to executives to purchase 40,000 shares of $10 par Common Stock, 2-Options granted (1/1/X2) & were exercisable 2-yrs after date granted if still employeed by company, expire after 6-yrs with 2-yr vesting (service) period, 3-Option price set at $80/shr, compensation expense $1.2 mil based on Fair Value Pricing Model, 4-All options were exercised during (20X4): a. 30,000 shrs on (1/1/X4) when market price $134/shr, b. 10,000 shrs on (5/1/X4) when market price $154/shr, 5-Employees performed services equally in 20X2 & 20X3, detailed accounting by Allen Mursau
Views: 4263 Allen Mursau
Why you never exercise an American Call Option on a Non-Dividend Paying Stock
 
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A brief argument showing why you never exercise an American call option on a non-dividend paying stock
Views: 15119 Matt Brigida
Employee Stock Option Taxes: What You Need to Know
 
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To make the most of stock options, you must understand their taxation. Learn the tax basics of nonqualified stock options (NQSOs) and incentive stock options (ISOs) in this video. If you have both NQSOs and ISOs, it’s important to know the different tax, withholding, and filing rules that apply, which this video explains. With this core understanding, you can maximize the value of each type of grant and avoid overpaying taxes. The video features clear and concise explanations of NQSO and ISO tax rules by the editor-in-chief of myStockOptions.com, along with animated examples.
Views: 3022 myStockOptions
Call Options Strategy - Should You Ever Exercise A Call Option Early?
 
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Call Options Strategy - In this video Dan Meyer discusses the only time you might want to exercise a call option early.
Views: 3284 Earn With Options
3. Trading Put Options
 
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This is the third video in our series on trading options. Be sure to check out our previous videos on this subject to continue your education. Practice these concepts in a demo account: http://bit.ly/trademonster Join us in the discussion on InformedTrades: http://www.informedtrades.com/1265739-example-trading-put-option.html VIDEO NOTES Here are some notes from the video: Example of Selling a Put Option Assume a trader believes SLV will fall in price. A trader could short SLV outright, or they could buy put options. Consider the following scenario: 1. SLV is selling at $18.62 per share 2. A trader buys a put option with a strike price of $18, for a price of $0.33 per share (plus commission). From the previous videos in this series, we know that this means the trader has purchased the right to sell SLV at $18 per share. 3. If the price of SLV falls below $18, the trader can buy SLV and exercise the put option to sell at $18, which in turn will net a profit. For instance, let's say SLV drops to $17 per share. In such a scenario, the following can occur: 1. Trader buys SLV at $17 2. Trader exercises put option to sell at $18 3. $18 - $17 = $1. Minus the price of the option -- $0.33 -- and we see a gross profit of $.67 per share. If we bought options on 100 shares, this would net us a profit of $67, minus any commissions charged by the broker. From this, we can deduce the math of the some of the basics of the reward/risk in this option trade: 1. The option must fall below $17.67 before the option expires to be profitable 2. If the option does not fall below this price before expiration, the trader will not exercise the option. In such a scenario, the loss the trader experiences is at most the cost of the option. If SLV is between $17.67 and $18, the trader can exercise the option to net a small profit -- but one that does not offset the cost of the option. If SLV remains above $18, the trader can simply not exercise the option, and in such a scenario will lost only the cost of the option $0.33 per share. Shorting a Stock vs Buying a Put Option 1. Shorting requires more capital upfront. 2. Shorting has unlimited loss potential while an option has a fixed cost. Even if the trader uses a stop loss order, stops can be run in the event of an overnight market gap. 3. options can yield a greater percentage gain, and thus by extension, require a smaller move in the price of the underlying asset to generate the same return as would be needed if it were just a short trade. 4. Shorting a stock does not have an expiration date, while put options do. In subsequent videos, we'll compare the math for options based on different strike prices (which in turn will have different premiums and different profitability scenarios).
Views: 15389 InformedTrades
What Are Stock Options? - What Is A Stock Option?
 
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http://www.optionsizzle.com What are Stock Options? I was recently asked this question by a visitor to my web site, You may have seen the term "stock options" in the financial section while scanning the news. Or perhaps, you've encountered the term as an employee and were offered stock options in your company. So, what are stock options? Can these options be used to your advantage? Yes! There are two different types of stock options. Let me help you understand the difference. VISIT OptionSIZZLE.com FOR OUR 5 STEP FORMULA TO MORE PROFITABLE OPTION TRADES http://www.OptionSIZZLE.com SUBSCRIBE TO THE YOUTUBE CHANNEL! http://www.youtube.com/subscription_center?add_user=optionsizzle LET'S CONNECT! Facebook ► http://facebook.com/optionsizzle Twitter ► http://twitter.com/optionsizzle OptionSIZZLE ► http://www.optionsizzle.com Google+ ► http://gplus.to/optionsizzle What Are Stock Options -- Employee Stock Option (ESO) An Employee Stock Option (ESO) is a type of non-cash compensation that is typically issued to management as part of an executive compensation package. Technically, an ESO is classified as a non-standardized option because it has several differences from an exchange traded option. The reason companies offer this type of compensation to management is because it provides management with incentive to run the business well. The stock of a well managed company with good growth potential is likely to rise, rewarding the management team. Here are some differences between an ESO and an exchange traded option: 1) An ESO is may not be traded. That means that cannot be bought or sold in the open market on any kind of exchange. An ESO is strictly issued from the company to the employee. 2) The quantity of the ESO is determined by the company and is not standardized like an exchange traded option. The strike price or exercise price is usually the price of the company stock. 3) The duration of an ESO varies and it can be many years to expiration, unlike an exchange traded option that has a shorter life span to expiration. What Are Stock Options -- Exchange Traded Options An Exchange Traded Option is a standardized contract that is traded over the counter on a specific exchange. Standardized means that there is a standard set of rules governing the trading of that exchange traded option. These are the types of options that you will typically only have access to since they are traded on an exchange and available to the public. 1) Unlike an ESO, one standardized option contract represents one hundred shares. So if I bought one Apple (AAPL) option contract, I would actually control one hundred shares of that stock. If I decided to exercise that contract, then I would be purchasing one hundred shares of stock for every one option contract I exercised. 2) There are two types of standardized option contracts. You can be a buyer or a seller of an option and each gives you specific rights or obligations. To keep it simple in the example below, I will explain only the concept of buying the two types of options. A call option gives you the right to buy the underlying asset (stock or future) at a set strike price. It is a right and not an obligation. You pay a premium or deposit for the option contract which gives you the right to own the stock at a set price on or before a set date. When you buy a call option, you expect the price of the underlying asset to go higher in order for the option contract to become profitable. What you have at risk is only the premium that you paid for the option contract. So, in the case of purchasing a home, you would put down a deposit to show the seller you were a serious buyer. If a few days later a tornado destroyed the house, you would lose only your deposit amount and not the full value of the home. I know there are probably ways to get your deposit back, but I wanted to give you a visual.
Views: 4555 OptionSIZZLE
Options Expiration & Assignment
 
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http://optionalpha.com - Options contracts have finite expiration dates and are regulated by the Options Clearing Corp. In this video, we'll cover the entire options expiration and assignment process so that you have a clear understanding of what happens when contracts are exercised and assigned. ================== Listen to our #1 rated investing podcast on iTunes: http://optionalpha.com/podcast ================== Download your free copy of the "The Ultimate Options Strategy Guide" including the top 18 strategies we use each month to generate consistent income: http://optionalpha.com/ebook ================== Grab your free "7-Step Entry Checklist" PDF download today. Our step-by-step guide of the top things you need to check before making your next option trade: http://optionalpha.com/7steps ================== Have more questions? We've put together more than 114+ Questions and detailed Answers taken from our community over the last 8 years into 1 huge "Answer Vault". Download your copy here: http://optionalpha.com/answers ================== Just getting started or new to options trading? You'll love our free membership with hours of video training and courses. Grab your spot here: http://optionalpha.com/free-membership ================== Register for one of our 5-star reviewed webinars where we take you through actionable trading strategies and real-time examples: http://optionalpha.com/webinars ================== - Kirk & The Option Alpha Team
Views: 39494 Option Alpha
Stock Appreciation Rights (Stock Appreciation Plan, Share Based Liability & Compensation Expense)
 
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Accounting for stock appreciation rights (SARS) as share based liability, the company gives executives the right to rceive compensation equal to share appreciation, the excess of the market price of the stock at the date of exercise over a pre-established price, the company may pay the share appreciation in cas, shares or combination of both, this example is based on payment in cash, stock appreciation rights compensation expense is calculated (fair value SAR x number of SARS issued x percent allocation for service period = compensation expense), this is done for each reporting period based on the difference between last reporting period expense & current reporting period which equals expense for current period, setup as liability for stock appreciation plan & expense for stock appreciation plan, If the SAR's were not exercised at the end of the 4-year service period, adjust compensation expense when ever there is a change in market price for subsequent reporting periods until the rights are exercised or expire, example Corp-A issues 240,000 stock-appreciation rights (SAR'S) to its officers: 1-Receive cash for the difference between the market price of its stock at a pre-established price of $10/share, 2-Service period is (4) years & exercise period of (7) years, 3-Fair value of SAR's (Mkt. Price - Pre-established Price) Estimated at end of each year: 20X1: ($4), 20X2: ($1), 20X3: ($11), 20X4: ($9), detailed calculations by Allen Mursau
Views: 6615 Allen Mursau
How can I exercise stock options?
 
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This video by Theresa Oatman, CEP, explains the three common ways that you can exercise your stock options. You will learn how to sell for cash, sell to cover, or sell all of your stock.
Views: 130 StockConnections
Options 101:  Exercise vs  Assignment
 
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In this presentation we share the basics of option investing assignment and exercise, and handle the common questions such as: 1. What is the outcome of a sold call that is In-The-Money at Expiration? 2. What happens if I do not close a long call or long put that is In-The-Money at Expiration? 3. When will I be Assigned early? 4. How will my broker handle a vertical spread position where the stock is between the two strike prices at Expiration? 5. Should I allow my broker to exercise my long, far out option to deliver my short obligation in a Calendar Spread? In this class we will handle all these questions at once, and clear up any confusion investors might have on being exercised or assigned.
Views: 5679 PowerOptions
My First Stock Option Assignment! What should you Do?
 
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I've been trading Stock Options for a While now, and i have never been assign stock! Well It's going to happen at some point and it just did! My Short Put's Got assigned I receive 100 Stocks of Trip and My Option Broker Tasty Trade Send me a Crap load of Emails saying i need to fix it ASAP or they where going to! For More Hacks, Tricks, & Tricks Checkout (http://ReviewOutlaw.com)
Views: 1407 Review Outlaw
What to Know Before Exercising Stock Options
 
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View more details at https://projectethereum.com/?ref_id=incomeforu
Views: 10 Mary Lewis
Stock Options (Issuing, Exercising & Terminating Options, Compensation Expense, PIC Options)
 
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Accounting for stock options issued, exercised & some options terminated using the fair value pricing model which uses the stock option price rather than the stock market price as the accounting basis, using the fair value option method the stock price established by the market has no relevance for accounting, the option price is used for accounting, granting the stock options requirs recording compensation expense on the income statement and recording paid-in capital (stock options) equity account for the associated to the expense, upon exercising the options the PIC-Stock Options is reduced and transferred to common stock issued and the associated APIC-Common Stock, terminated options reduces the compensation expense & PIC-Stock Options, On (1/1/X1) Corp-A's Stock Option Included: 1-Granted options to executives to purchase 20,000 shares of $10 par Common Stock, 2-Options granted (1/1/X1) & were exercisable 2-yrs after date granted if still employeed by company, expire after 5-yrs with 2-yr vesting (service) period, 3-Option price set at $50/shr, compensation expense $800,000 based on Fair Value Pricing Model, 4-Following Stock Option activities: a. 3,000 options were terminated on (4/1/X2), employee resigned, market price C/S was $70/share, b. 12,000 options were exercised on (3/31/X3) when market price $80/shr, detailed accounting by Allen Mursau
Views: 2075 Allen Mursau
Options A to Z - Exercising Options in Think or Swim
 
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A mini trading tutorial from Options A to Z.com -- the website dedicated to teaching investors the art & science of options trading. Learn how to exercise options in Think or Swim (TOS) -- the option industry's most powerful software.
Views: 32402 optionsatoz
W is for Warrants - The Elite Investor Clubs A - Z of Investing
 
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As we reach the letter W in our A to Z of investing we really are on the home straight now. And today we’re going to cover one of the more arresting aspects of investing because W stands for Warrants – did you see what I did there?! Earlier in this series we talked about stock options, which give you the right but not the obligation to buy or sell shares at a particular price on or before a particular date. If you remember, you can buy a call option if you think the price is going up or a put option if you think the price is going down. The main advantage over buying the actual shares is leverage. For the same amount of money you can control a larger number of shares and therefore achieve a bigger bang for the buck IF your hunch proves correct. Options are bought and sold between investors without any involvement from the underlying company. Stock warrants offer the same benefits as stock options but have two fundamental differences. First of all, the warrants are issued by the company itself rather than another investor. So if you think Marks and Spencer shares are going up, you might look for call warrants issued by the company rather than taking an option on some shares belonging to another investor. The second difference concerns what happens when the option or warrant is exercised. If you exercise a call option with another investor to buy Marks and Spencer shares at five pounds, you’ll take delivery of the shares he owns. If you exercise a warrant to buy those same shares at five pounds, Marks and Spencer will provide the shares to fulfil the transaction. Why would the company do this? Simple. It’s a means of raising money. Why would you use warrants rather than options? Firstly, because they tend to be cheaper to buy than options so you could control even more shares for the same amount of cash. And secondly because warrants have a much longer lifespan than options. An option term will usually not be more than two or three years, whereas warrants can be valid for up to fifteen years. So if you’re a medium to long term trader you might find warrants acquired directly from the company can give you the perfect balance between risk, timescale and investment. In other words, you’ve got a much longer time period to prove your hunch than with options. A variation on the warrant theme is covered warrants, sometimes called naked warrants. Not sure why, you’d think if they’re naked they should be uncovered warrants. Anyway, these tend to be issued by financial institutions rather than companies and can have a mixture of financial instruments underlying them. This could be equities, bonds, currencies and so on and covered warrants will trade on a number of stock exchanges. The premium you pay for the covered warrant is the most you can lose – there’s no concept of margin calls so your liability is limited. They are called covered because the issuer will cover themselves or hedge their bet by buying the underlying financial instrument in the market. These tend to be shorter term than equity warrants, usually six to twelve months. They have more in common with options than traditional warrants, though they tend to have longer maturity dates. Just like spread betting, futures and options, warrants are a form of trading that you should only get involved with after you’ve been trained by people like my friends Marcus de Maria and Siam Kidd. They’re not for beginners and you can easily lose all your money if you’re not careful. On the other hand, if you know what you’re doing warrants can be cheaper and more flexible than options because they give you a longer period in which to be proved right. Put the work in so that you’re more often right than wrong and you’re on the way to making some serious wonga!
Views: 11634 Elite Investor TV
How To Buy And Sell Or Trade Options On Robinhood App
 
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Robinhood added options trading to their platform. Options gets confusing as they are not as simple as just buying and holding. A lot of factors make up the price and what the price of the options contract will be in the future. We go through the basics of how to buy and sell a call or put option. Join US vs HERD's free options trading group: http://bit.ly/UVHFreeOptionsGroup Follow and listen to our Spotify playlist: http://bit.ly/WorkEthicPlaylist Connect with Nick — Twitter: https://twitter.com/NickDChow Instagram: https://www.instagram.com/nickdchow Connect with US vs HERD — Twitter: https://twitter.com/USvsHERD Instagram: https://www.instagram.com/usvsherd Facebook: https://www.facebook.com/USvsHERD robinhood app for beginners options trading robinhood options trading explained robinhood app tutorial
Views: 82026 US vs HERD
What is 'Do not Exercise option' for trading members?
 
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What is 'Do not Exercise option' for trading members? This segment of Zee Business brings an update of the stock market. Experts on the show will tell you what actually is Do not Exercise option'. Watch full video to know more. About Zee Business -------------------------- Zee Business is one of the leading and fastest growing Hindi business news channels in India. Live coverage of Indian markets - Sensex & Nifty -------------------------------------------------------------- You can also visit us at: https://goo.gl/sXWpTF Like us on Facebook: https://goo.gl/OMJgrn Follow us on Twitter: https://goo.gl/OjOzpB Subscribe to our other network channels: Zee News: https://goo.gl/XBvkjZ
Views: 2988 ZeeBusiness
When Should I Exercise an American Stock Option - Finance Tutorial
 
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Buy The Book Here: https://amzn.to/2CLG5y2 Follow Patrick on Twitter Here: https://twitter.com/PatrickEBoyle People are often confused as to when it makes sense to exercise an option. Most of the time it does not make sense to early exercise American options. In this video we go through the scenarios where it might make sense. For an American-style call option, early exercise is a possibility whenever the benefits of being long the underlying outweighs the cost of giving up the option early (the benefits of being long the underlying outweigh the foregone time value of the option). For example, on the day before an ex-dividend date, it may make sense to exercise an equity call option early in order to collect the dividend. In general, equity call options should only be exercised early on the day before an ex-dividend date, and then only for deep in-the-money options when the dividend is sufficiently large For an American-style put option, early exercise might make sense if it is deep in-the-money. In this case, it may be wise to exercise the option early in order to obtain the intrinsic value (K – S) earlier so that it can start to earn interest immediately. This is somewhat more likely to be worthwhile if there is no ex-dividend date, which would probably cause the price of the underlying to fall further between now and the expiry date. This would usually require interest rates to be relatively high.
Views: 106 Patrick Boyle
Share Buyback and Stock Options (Excel)
 
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Should a company buy back shares when stock options are exercised? Valuation is demonstrated in Microsoft Excel. Download spreadsheet: http://www.hvass-labs.org/people/magnus/publications/share-buyback.xlsx Other videos in this series: https://www.youtube.com/playlist?list=PL9Hr9sNUjfsk2b8Y-MFU6W_rnCgwN51Ef
Views: 411 Hvass Laboratories
Pricing An Option on a Dividend Paying Stock Using The Binomial Tree Method - Trading Tutorial
 
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Buy The Book Here: https://amzn.to/2CLG5y2 Follow Patrick on Twitter Here: https://twitter.com/PatrickEBoyle This is the sixth video in our series on pricing options, to watch the whole series as a playlist, click here: https://www.youtube.com/watch?v=LHaftRA2N8A&list=PLHC72UlhAthDq-s_jRepKDrsaeGDU3PaJ Options on Dividend Paying Underlyings For an American-style call option, early exercise can make sense whenever the benefits of being long the underlying outweighs the cost of giving up the option early (the benefits of being long the underlying outweigh the foregone time value of the option). For example, on the day before an ex-dividend date, it may make sense to exercise an equity call option early in order to collect the dividend. In general, equity call options should only be exercised early on the day before an ex-dividend date, and then only for deep in-the-money options when the dividend is sufficiently large. Todays video illustrates a scenario where a dividend of $2.50 per share is expected to be paid immediately prior to expiration of an option. Call option holders, though holding "bullish" or "long" positions with respect to the underlying asset, are not eligible to collect dividends paid on the underlyings. Therefore, if a long American call option holder expects at T0 and at T1 that a dividend will be paid on the underlying stock just prior to the option's maturity at T2, they can evaluate whether or not it is optimal to early-exercise. Analyzing potential early exercise at T0 shows there is no benefit to early exercising since the option is not in-the-money. At T1, the up node is in-the-money, the American call holder evaluates if holding or early-exercising is optimal. Early-exercising has a value at T1 in the up node of $3.00 ($30 share price less $30 strike). Using the European options binomial tree pricing formula fu in the up node, the call option is valued at only $2.73. This valuation difference came about because the expected value of the spot at T2 is reduced by $2.50 just prior to expiration. This dividend payment is of sufficient size, in this case (it is not always optimal to early-exercise on dividend-paying stocks, prior to expiration, it depends on the relative size of the dividend), that the underlying asset's price drop due to the dividend payment makes early-exercise the optimal strategy.
Views: 111 Patrick Boyle
How To Exercise An Option After Assignment
 
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http://optionalpha.com - Early this morning one of our short options in a credit spread got assigned. In this video I want to walk through the simple task of exercising the corresponding option we are long to close out the position. ================== Listen to our #1 rated investing podcast on iTunes: http://optionalpha.com/podcast ================== Download a free copy of the "The Ultimate Options Strategy Guide": http://optionalpha.com/ebook ================== Still working a day job? Then our "Take 5" segment is for you. 5 mins videos each day on 1 thing you can apply trading options: http://www.youtube.com/playlist?list=PLhKnvfWKsu40z0EnsX0TNqCgUzb8tmM04 ================== Start our 4-part video course (HINT: these videos are NOT posted anywhere else online): http://optionalpha.com/free-options-trading-course ================== Just getting started or new to options trading? Here's a quick resource page we made that you'll love: http://optionalpha.com/start-here ================== Register for one of our 5-star reviewed webinars: http://optionalpha.com/webinars ================== - Kirk & The Option Alpha Team
Views: 4599 Option Alpha
The Risks Of Trading Options On Robinhood App
 
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Options are complicated and the risks are not clearly presented. Unfortunately Robinhood provided access to options to people who are not yet familiar with them or the risks. We also feel Robinhood doesn't do a great job of going over the basics of options to new traders. Join US vs HERD's free options trading group: http://bit.ly/UVHFreeOptionsGroup Follow and listen to our Spotify playlist: http://bit.ly/WorkEthicPlaylist Connect with Nick — Twitter: https://twitter.com/NickDChow Instagram: https://www.instagram.com/nickdchow Connect with US vs HERD — Twitter: https://twitter.com/USvsHERD Instagram: https://www.instagram.com/usvsherd Facebook: https://www.facebook.com/USvsHERD robinhood app for beginners options trading robinhood options trading explained robinhood app tutorial
Views: 25210 US vs HERD
Reporting taxable benefit for exercising employee stock options
 
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Generally, in the year the employee stock options are exercised, a taxable employment benefit equal to the difference between the exercise price and the fair market value of the stock on the date of the exercise has to be reported as income on the personal tax return Find out more here http://madanca.com/faq/will-i-have-to-report-any-taxable-benefit-on-the-personal-tax-return-for-exercising-employee-stock-options-at-a-private-corporation
Views: 186 Allan Madan
BDO Reminds Shareholders to Exercise their Tax Relief Election on Stock Options
 
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Stock options have been used for decades by companies to offer their employees financial incentives in lieu of higher salaries. Benefits from a stock option are generally included in the individual’s employment income in the year the option is exercised.
Stock & Options - Understanding the options
 
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Employee Stock Options are non standard contracts with the employer whereby the employer has the liability of delivering a certain number of shares of the employer stock, when and if the employee stock options are exercised by the employee. Traditional employee stock options have structural problems, in that when exercised followed by an immediate sale of stock, the alignment between employee/shareholders is eliminated. Ask any of your stock or options Questions in the Comments below and allow our fellow GURU's to help you learn and study your way to financial Freedom.
Views: 691 Prikol TV
How to buy & sell options W/ TD Ameritrade (4mins)
 
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How to buy & sell option trade W/ TD Ameritrade (4mins)
Views: 49911 The Investor Show
What is INCENTIVE STOCK OPTION? What does INCENTIVE STOCK OPTION mean?
 
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What is INCENTIVE STOCK OPTION? What does INCENTIVE STOCK OPTION mean? INCENTIVE STOCK OPTION meaning - INCENTIVE STOCK OPTION definition - INCENTIVE STOCK OPTION explanation. Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license. Incentive stock options (ISOs), are a type of employee stock option that can be granted only to employees and confer a U.S. tax benefit. ISOs are also sometimes referred to as incentive share options or Qualified Stock Options by IRS . The tax benefit is that on exercise the individual does not have to pay ordinary income tax (nor employment taxes) on the difference between the exercise price and the fair market value of the shares issued (however, the holder may have to pay U.S. alternative minimum tax instead). Instead, if the shares are held for 1 year from the date of exercise and 2 years from the date of grant, then the profit (if any) made on sale of the shares is taxed as long-term capital gain. Long-term capital gain is taxed in the U.S. at lower rates than ordinary income. Although ISOs have more favorable tax treatment than non-ISOs (aka non-statutory stock option (NSO) or non-qualified stock option (NQO or NQSO)), they also require the holder to take on more risk by having to hold onto the stock for a longer period of time if the holder is to receive optimal tax treatment. However, even if the holder disposes of the stock within a year, it is possible that there will still be marginal tax deferral value (as compared to NQOs) if the holding period, though less than a year, straddles the ending of the taxpayer's taxable reporting period. Note further that an employer generally does not claim a corporate income tax deduction (which would be in an amount equal to the amount of income recognized by the employee) upon the exercise of its employee's ISO, unless the employee does not meet the holding-period requirements. But see Coughlan, Section 174 R&E Deduction Upon Statutory Stock Option Exercise, 58 Tax Law. 435 (2005). With NQSOs, on the other hand, the employer is always eligible to claim a deduction upon its employee's exercise of the NQSO. Additionally, there are several other restrictions which have to be met (by the employer or employee) in order to qualify the compensatory stock option as an ISO. For a stock option to qualify as ISO and thus receive special tax treatment under Section 421(a) of the Internal Revenue Code (the "Code"), it must meet the requirements of Section 422 of the Code when granted and at all times beginning from the grant until its exercise. The requirements include: The option may be granted only to an employee (grants to non-employee directors or independent contractors are not permitted), who must exercise the option while he/she is an employee or no later than three (3) months after termination of employment (unless the option holder is disabled, in which case this three-month period is extended to one year. In case of death the option can be exercised by the legal heirs of the deceased until the expiration date). The option must be granted under a written plan document specifying the total number of shares that may be issued and the employees who are eligible to receive the options. The plan must be approved by the stockholders within 12 months before or after plan adoption.
Views: 1612 The Audiopedia
Employee Stock Options | Compensation Expense | Accounting
 
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In this video, we look at Stock options and Share-based compensation in detail. We will also see How a Stock options Agreement works and many more. 𝐈𝐧𝐭𝐫𝐨𝐝𝐮𝐜𝐭𝐢𝐨𝐧 𝐭𝐨 𝐒𝐭𝐨𝐜𝐤 𝐁𝐚𝐬𝐞𝐝 𝐂𝐨𝐦𝐩𝐞𝐧𝐬𝐚𝐭𝐢𝐨𝐧 --------------------------------------------------------------------- Stock options allow the employees to buy certain shares at a predetermined price. These options are allocated only for specific employees. These options are different from other options. 𝐇𝐨𝐰 𝐚 𝐒𝐭𝐨𝐜𝐤 𝐎𝐩𝐭𝐢𝐨𝐧𝐬 𝐀𝐠𝐫𝐞𝐞𝐦𝐞𝐧𝐭 𝐖𝐨𝐫𝐤𝐬? ---------------------------------------------------------------- We will take an example, lets say Sr executive of the company to whom the company has given the stock options of around 3000 shares. And the company will allow him to exercise his options only after 3 years. That shows how a company can use the vesting period as a motivation for the employee to stay with company. 𝐓𝐚𝐱𝐚𝐛𝐢𝐥𝐢𝐭𝐲 𝐨𝐟 𝐒𝐭𝐨𝐜𝐤 𝐎𝐩𝐭𝐢𝐨𝐧𝐬 ------------------------------------------ Mainly there are 2 types of Stock Options. They are: 𝟭. 𝗡𝗼𝗻 𝗤𝘂𝗮𝗹𝗶𝗳𝗶𝗲𝗱 𝗦𝘁𝗼𝗰𝗸 𝗼𝗽𝘁𝗶𝗼𝗻𝘀: These options are also referred as Non-Statutory Stock Options. These options are open for taxability. In simple words we can say these options are taxable. 𝟮. 𝗜𝗻𝗰𝗲𝗻𝘁𝗶𝘃𝗲 𝗦𝘁𝗼𝗰𝗸 𝗼𝗽𝘁𝗶𝗼𝗻𝘀: These options are also referred as Incentive share options or qualified share options. But these options get tax benefits. That means no tax is applicable for these options. 𝐄𝐱𝐚𝐦𝐩𝐥𝐞 𝐨𝐟 𝐍𝐨𝐧 𝐐𝐮𝐚𝐥𝐢𝐟𝐢𝐞𝐝 𝐒𝐭𝐨𝐜𝐤 𝐨𝐩𝐭𝐢𝐨𝐧𝐬 ---------------------------------------------------------------- Lets think that a employee gets non qualified stock options. And this option allows him to buy 200 shares of his company at a predetermined price i.e of $35. Now, the day the employee exercises his option, he will be eligible for tax. And the market price is $40 at the time of exercise. Now the tax will be based on the difference between the predetermined price & price at which the option holder exercises the option. In this case it is $(40-35)*200 = 1000 To know more about Stock Based Compensation, you can go this 𝐥𝐢𝐧𝐤 𝐡𝐞𝐫𝐞: https://www.wallstreetmojo.com/share-stock-based-compensation-expense/
Views: 507 WallStreetMojo
Options Expiration Explained
 
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http://optionalpha.com - Video Tutorial on Options Expiration Explained ================== Listen to our #1 rated investing podcast on iTunes: http://optionalpha.com/podcast ================== Download a free copy of the "The Ultimate Options Strategy Guide": http://optionalpha.com/ebook ================== Still working a day job? Then our "Take 5" segment is for you. 5 mins videos each day on 1 thing you can apply trading options: http://www.youtube.com/playlist?list=PLhKnvfWKsu40z0EnsX0TNqCgUzb8tmM04 ================== Start our 4-part video course (HINT: these videos are NOT posted anywhere else online): http://optionalpha.com/free-options-trading-course ================== Just getting started or new to options trading? Here's a quick resource page we made that you'll love: http://optionalpha.com/start-here ================== Register for one of our 5-star reviewed webinars: http://optionalpha.com/webinars ================== - Kirk & The Option Alpha Team
Views: 18498 Option Alpha
American call options | Finance & Capital Markets | Khan Academy
 
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American Call Options. Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/core-finance/derivative-securities/put-call-options/v/basic-shorting?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Finance and capital markets on Khan Academy: Options allow investors and speculators to hedge downside (or upside). It allows them to trade on a belief that prices will change a lot--just not clear about direction. It allows them to benefit in any market (with leverage) if they speculate correctly. This tutorial walks through option basics and even goes into some fairly sophisticated option mechanics. About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1 Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
Views: 368705 Khan Academy
The Basics Of Non-qualified Stock Options And Tax Repercussions
 
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This one minute video with Certified Equity Professional Theresa Oatman gives a brief synopsis of non-qualified stock options and what happens when they are exercised. The do work differently than incentive stock options and qualified stock options so learning the difference can save you a headache and help you make the right decision.
Views: 7186 Gloopt
Stock Options (Expired Vs Forfeited, Effect On Paid-In Capital Vs Compensation Expense)
 
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Accounting for stock options issued, exercised & some options expired versus vesting requirements not met & how the options that have expired versus forfeited thru vesting requirements not met, how these expired & forfeited stock options are treated differently, transferring expired option value to a re-titled equity account & forfeited options are a reduction to compensation expense on the income statement,using the fair value pricing model which uses the stock option price rather than the stock market price as the accounting basis, using the fair value option method the stock price established by the market has no relevance for accounting, the option price is used for accounting, granting the stock options requirs recording compensation expense on the income statement and recording paid-in capital (stock options) equity account for the associated to the expense, upon exercising the options the PIC-Stock Options is reduced and transferred to common stock issued and the associated APIC-Common Stock,Case-1: Expired options are transferred from PIC-Stock Options to PIC-Expired Stock Options (Re-titles PIC account), Case-2: Options lost thru vesting requirements not met are transferred from PIC-Stock Options to reduction to Compensation Expense on I/S, 1-Granted options to executives to purchase 10,000 shares of $5 par Common Stock, 2-Options granted (1/1/X1) & were exercisable 2-yrs after date granted if still employeed by company, with 2-yr vesting (service) period, 3-Option price set at $40/shr, compensation expense $900,000, 4-On (5/1/X3) 9,000 options were exercised, 5-The remaining 1,000 options (Case-A & B): A. Expired (1/1/X4), company set this expiration date & the employees decided not to exercise their options B. Assume that 1,000 options were attributed to one employee who did not meet the vesting requirements by leaving the company, forfeits stock option, detailed accounting by Allen Mursau
Views: 5031 Allen Mursau
What is a nonqualified stock option? Segment 4
 
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Geoff Zimmerman, CFP, Senior Advisor for Mosaic Financial Partners, Inc., discusses the basics of stock options in this recording from a webinar hosted by Mosaic Financial Partners. This short video discusses non-qualified stock options, explaining the tax consequences involved when this type of stock option is exercised. A tax event is created when non-qualified stock options are exercised. Non-qualified stock options are one of the most common form of equity compensation issued to employees. There may be other differences between qualified and non-qualified stock options, spelled out in the option agreement, but taxes are the main concern here. NQSOs are not qualified for tax exemption upon exercise. The difference between the strike price and the current price of the stock, also known as the bargain element, is taxed as normal income. Some of the taxes that may apply are: • Federal income • State Income • Social Security • Medicare • Payroll It’s important to remember that these taxes are due and payable, when the option is exercised, in addition to the cost of the stock. Financial planning services can help you determine when and how to exercise this kind of option, taking the tax ramifications involved into consideration.
Accounting for Stock Options
 
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http://www.accounting101.org Accounting for stock options: this is an example problem about how to account for stock options.
Views: 22256 SuperfastCPA
Understanding your Employee Stock Options
 
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Stock options are a valuable benefit. Learn how incentive stock options and non-qualified stock options work, maximize their benefits, and implement them into your financial plan!
How Options are Exercised, Segment 3
 
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Geoff Zimmerman, CFP, Senior Advisor for Mosaic Financial Partners, Inc., explains the key features of employer-granted stock options in this recording from a webinar hosted by Mosaic Financial Partners. The practical aspects of exercising options and the tax events created are discussed. The difference between the strike price and market price is treated as equity compensation, so the employee must pay applicable payroll taxes on the difference. Companies understand their employees may not have cash to cover these costs. Three strategies can be used when exercising options: • Exercise and hold – buy stock and keep. • Exercise and cover – buy stock but sell enough to cover costs. • Exercise and sell – buy stock sell all and keep the profit, minus the costs. This entails buying restricted stock units through a designated brokerage firm or through the company itself. The buyer must pay in full, with good funds, for all of the stock purchased and the payroll taxes due on the profit. Remember since the strike prices is below market value, the difference is treated like equity compensation, so payroll taxes must be paid by the buyer. Exercising options can be an important key to strategic wealth management.
What is NON-QUALIFIED STOCK OPTION? What does NON-QUALIFIED STOCK OPTION mean?
 
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What is NON-QUALIFIED STOCK OPTION? What does NON-QUALIFIED STOCK OPTION mean? NON-QUALIFIED STOCK OPTION meaning - NON-QUALIFIED STOCK OPTION definition - NON-QUALIFIED STOCK OPTION explanation. Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license. Non-qualified stock options (typically abbreviated NSO or NQSO) are stock options which do not qualify for the special treatment accorded to incentive stock options. Incentive stock options are only available for employees and other restrictions apply for them. For regular tax purposes, incentive stock options have the advantage that no income is reported when the option is exercised and, if certain requirements are met, the entire gain when the stock is sold is taxed as long-term capital gains. In contrast, non-qualified stock options result in additional taxable income to the recipient at the time that they are exercised, the amount being the difference between the exercise price and the market value on that date. Non-qualified stock options are frequently preferred by employers because the issuer is allowed to take a tax deduction equal to the amount the recipient is required to include in his or her income. If they have deferred vesting, then taxpayers must comply with special rules for all types of deferred compensation Congress enacted in 2004 in the wake of the Enron scandal known as Section 409A of the Internal Revenue Code.
Views: 513 The Audiopedia