What is the most popular strategy for exercising stock option grants?
Unfortunately, the most popular “strategy” seems to be “take the money and buy a boat.” Many option-holders view their grants as found money, and use it for a discretionary purchase rather than a long-term investment. Before addressing whether ALAP, ASAP, or some other strategy will generate the most immediate cash, an advisor is well advised to understand their clients’ current financial situation, long-term plans (if any), and their sense of the role their options play in their total net worth. Don’t let the tail wag the dog.
