Options Trading Tutorial

How do you determine whether to buy stock options?

I work for a startup. I have vested stock options. I am leaving the company to go to another career. How do I know whether I should buy my stock options?

Public Comments

1. Always take the cash when you leave. If you do nothing, the options will expire worthless. If you take the stock, you'll have to pay income tax on the gain, but if the stock drops later (Enron....), you'll owe more to the IRS than you can collect selling the stock.