Fascination About stock options

Fascination About stock options

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When exercised, theres no quick taxable revenue, and if held for your necessary time period, any revenue on sale is taxed as lengthy-term capital gains rather than ordinary income.

An extended expiration is also handy because the solution can retain time price, even if the stock trades underneath the strike cost. An alternatives time click here value decays as expiration ways, and options buyers dont want to look at their procured options decrease in benefit, possibly expiring worthless In case the stock finishes below the strike price tag.