Anyone still have theirs? What did you do - buy or sell?
12 replies (most recent on top)
@cq Big NO if it’s a NSO but YES if it’s an ISO or ESPP shares purchased.
@cv You are not technically holding anything other than an “opportunity”, because the shares are not issued. Reach out to the to the stock plan services advisors if you can. Those who sold (same day sell to cover) when Rick did before the RTO announcement and even now are solid. Those who are holding because they see the option worth $1750 now thinking they are “holding” that value without exercising are unfortunately going to lose that value the min. The price drops and no holding benefits until you exercise. You have to exercise (aka buy) low and sell high. For those not doing anything with your NSOs thinking your “holding” your not holding shares just the opportunity to buy shares at the lower price. There is no benefit not exercise it during this rally. No tax benefits and no dividends to be paid.
@cq not necessarily, that would be a case of the OP was granted an ISO grant award with nice long term holding tax benefits. The number reason to hold is if OP is getting dividends paid on those options which if it’s the NSOs granted to everyone back in 2023, there is no point. but OP needs to do his due diligence around holding requirements for that capital gains tax benefit if any. Also, there is the real possibility that this rally where the Schwab stock price is holding between $90 + just might drop back down below near those averages around $70 per share in 2026, then there is a trade off to be considered. Remember, it’s an option to “buy” at the stroke price stated in your online grant agreement and you still need to “pay” (exercise price plus taxes) whether it’s out of pocket or a sell to cover. You can exercise the option and hold the shares to get dividends on those shares but you have to pay cash or sell to cover reducing the shares you get transferred into your EAC account. Then holding those shares for at least one year and then sell triggers the long term holding benefits of paying lower capital gains taxes. But by that time, you the difference between the capital gains tax & short term ordinary income taxes can be negligible. Holding that option now provides no benefits until the shares are issued - this requires exercising the stock option to trigger the holding requirements. At this point do a sell to cover to capture this $90+ appreciation because 2026 ain’t looking too hot. Remember the NSOs don’t offer holding benefits until you exercise, you only have the option to buy the stock at the strike price in your grant agreement. It’s the biggest mistake to hold it like an ESPP share which is issued when purchased. Holding it with the hope the price skyrockets doesn’t remove the obligation to buy, it just puts the onus on the employee to know when to exercise at the optimal price. So if you think the price is only going up from here, then your not holding, your just waiting to exercise. You can’t hold shares until you exercise the option when the shares are issued AND ONLY then do you actually “hold”
Well you have to buy as it’s a stock option, make sure you do a sell to cover which will cover the exercise cost (price to be paid) and the taxes owed (which will likely be ordinary income assuming your talking about the stock options granted back at the end of 2023 and of course read your grant agreement around those details bc could be different for you). I’d say $95 is that sweet spot so do it before it drops below $90. There are those who believe the price could get up to $100/share but that was a while ago. So if you need/want your money now - do a same day exercise, sell to cover.
There's always that class clown that's holding. Diamond Hands. Nice Very Nice.
Life is all about quick doubles. Sell ASAP LOL. Were you asleep in your Math Class ?
10x that ish with Pepe
Still have some, but I have a sell order now. A nice bump up and I'm out
Thanks for the replies, I'll keep holding.
Most of the value in an employee stock option is due to the long duration. If you're not planning to leave soon, you should hold onto them.
Still sitting on them. Currently they are worth about $1750.
SOLD - just like Walt, baby.