No. of Recommendations: 2
I believe your analysis of the tax and income consequences is correct for non-qualified stock options (NQSO).

Still, despite the higher tax burden, many people choose to perform "same-day sales" as you have done to eliminate the risk inherent in holding large chunks of stock in their employer.

Also, if you like the long-term prospects of your company and aren't planning on leaving soon, don't be too quick to exercise those options once they vest. Options are often valid for a long time (10 years is typical) and you could end up with a lot more money down the road. Of course, there is opportunity cost risk in that approach, but I find that more appealing than the very real risk of stock depreciation if you exercise and hold.

hope this helps,
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