Stock Markets Exposed
Should I sell my company stock options?
Hello, Recently my company has been on an upswing and the stock price is trading at its highest level ever (it took over 6 long years, never thought this would happen). I have thousands of exercisable options. If I exercise the options and sell my shares tomorrow, I would see a gain of 23 dollars per share. No doubt I would be way ahead of what I started at. The problem is, I'm curious as to whether I should wait a little bit more for a possible gain in the share price. Some have told me that if I don't need the money, not to sell. My broker is worried that there really isn't anymore of an upside to the stock price. I am already well off with the stock if I sell but is it worth it to gamble and perhaps wait a little more? Will selling and investing in other mutual funds/money market end up being worth more in the long run than waiting and selling?
Public Comments
- I would personally sell them, as that is a nice profit and in this market, there is more pressure to the downside than support to the upside. If you really believe the stock is going to continue to appreciate, why not exercise some of your options to lock in the profit, then let the others ride. This will allow you to take that profit and invest it elsewhere like a S&P 500 index fund for the time being, or even a money-market fund. This would support you some if your company's stock experiences a dramatic drop. While it may restrict your gains if your company's stock continues to gain substantially, you still have to consider that you reduced your risk and that you locked in $23 per share. Just my opinion, I hope it helps some. Best of luck! Brendan Prewitt
- Without a company name its pretty hard to answer. You have the advantage in knowing how your company is doing. Its business getting better or worse? Either way $23 is a huge gain. I would sell at least sell some of the options. The amount depends on how well your company is doing, and how much of a drop you can tolerate. Selling half and keeping half is good method in general.
