Ask HN: High cost to exercise startup options – what happens if they go to zero?

Re:Ask HN: High cost to exercise startup options – what happ... by m463 on Thursday July 11, 2019 @10:25PM (#20417598)

Are you considering exercising pre-ipo options that are unvested, to hold? If so, file an 83b otherwise you could be destroyed by taxes on unrealized income.

Normally though, people hold their stock options and sell them when they are with something. People are granted stock options say 100 shares at $20, they wait until they vest and are worth something like $60 and do a "same day sale". In this case they would be lent $20 per share, sell them, pay back the $20 netting $40 per share.

[ Parent | on HN ]

Re:Ask HN: High cost to exercise startup options – what happ... by equity-question on Friday July 12, 2019 @12:10AM (#20418062)

The problem is that I may have to buy and hold. For example, if I leave the company, I have to buy the options within 6 months or else they expire.

Otherwise, of course, waiting until the options are profitable is the best move and is risk-free.

[ Parent | on HN ]