Guide to Exercising Stock Options: Timing, Taxes, & Tradeoffs

Описание: If you have stock options as part of your compensation, understanding when and how to exercise them could save you tens of thousands in taxes or cost you that much if you get it wrong.

In this comprehensive guide, I break down everything you need to know about Incentive Stock Options (ISOs) and Non-Qualified Stock Options (NSOs), including how Alternative Minimum Tax (AMT) works and why it matters more than ever starting in 2026.

Whether you're currently employed or leaving your company, this video will help you make informed decisions about your stock options before that 90-day window closes.

We cover:
The critical differences between ISOs and NSOs (and why it matters for your taxes)
How Alternative Minimum Tax (AMT) works and the major 2026 rule changes
Smart timing strategies: when to exercise to minimize your tax bill
What to do when leaving a company (don't wait until day 89!)
The spread vs. time value calculation for optimal exercise timing
How to avoid the cash crunch from AMT on ISOs
Charitable giving strategies with appreciated shares

Timestamps:
(00:00) Introduction: Two Types of Stock Options
(01:00) Incentive Stock Options (ISOs) Explained
(03:00) Non-Qualified Stock Options (NSOs) Explained
(04:30) Alternative Minimum Tax (AMT) Complications
(06:00) 2026 AMT Rule Changes You Need to Know
(07:30) When to Exercise Your Options
(11:00) Strategic Exercise Timing for ISOs
(12:00) NSO Exercise Strategies
(13:00) What Happens When You Leave Your Company
(16:00) Summary: Five Key Takeaways

I'm Bjorn Amundson, a certified financial planner with Quarry Hill Advisors. We're a financial planning firm in Minnesota, and stock option planning is something we deal with regularly. The goal is to exercise your options strategically to maximize your after-tax wealth.

Need help with your specific situation? Check out our website where you can schedule a strategy session at quarryhilladvisors.com

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