I just read the Q&A on nonqualifed stock options. It made me wonder if the tax laws do not provide and incentive to exercise options sooner rather than later.Consider the following example:Suppose I am granted an option to buy 5000 shares of my company's stock for $10. Three years later, the stock is selling for $20.Suppose I exercise the options and sell the stock three years after the options are granted. My total tax bill--assuming that I am in the highest tax bracket--is $19800. If I had exercised the options as soon as possible, say after one year, when the price was $13, my tax bill would be much lower:.396*3*5000 + .2*7*5000 = $12940.This is a big difference! The incentive to exercise options sooner was sweetened when the capital gains tax rate was cut last year. I understand that there are other considerations, mainly that you have no downside risk with options, but you do with stock.Nevertheless, I have never seen any articles that mention the effect I described above. Any thoughts on this would be welcome.