New Step by Step Map For stock options

New Step by Step Map For stock options

Blog Article

When exercised, theres no instant taxable earnings, and if held for your necessary period, any income on sale is taxed as prolonged-phrase money gains as opposed to regular revenue.

The price you purchase a possibility, called the high quality, has two factors: intrinsic value and time worth. Intrinsic value more info is definitely the distinction between the strike rate as well as the share selling price, if the stock price tag is higher than the strike. Time value is whatsoever is remaining, and factors in how volatile the stock is, enough time to expiration and desire prices, amid other things.