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Subject:  Underwater NQSO about to expire Date:  4/20/2007  8:08 PM
Author:  dab64 Number:  2038 of 2049

I have a NQSO grant that is about to expire (the original grant was 7 years ago).

The options are actually slightly underwater today (strike price was $30, today's closing price was $29.02). Over the last 52 weeks, the price has ranged between $21.45 and $31.48.

The grant is 2,200 shares, so it would cost me $66,000 to exercise, which is a significant amount of money for us. I am doubtful that the stock price will increase tremendously any time soon, so that's 66K that will be tied up in stock, and unavailable for other things like home improvement, etc.

Should I just let these options expire? The stock price would have to gain $1 for me to just break even. Even if it increased $2 (which doesn't seem likely in the short term), that's only a 3.3% ROI before taxes. It seems more likely that the stock could lose even more value.

Looking at it this way, it seems like very little reward for a significant amount of risk, so I'm inclined to just leave these options on the table. Are there other things I should consider?

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