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Author: cfofool Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75776  
Subject: Re: Stock Options Date: 1/12/1999 6:01 PM
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There's no right answer in your situation. However, from my experience, I'd suggest holding the vested options unless you have a feeling the stock is headed south. It looks from your post that the stock has doubled in the year since you received your grant so the market looks pretty enthusiastic about your company (as am I because they've hired a 24 year-old Fool).

If you sell, you'll gross about $2,000, probably $1,600 after tax. Put this in an index fund and you can expect 10-12% returns annually.

Some other things to consider:

1) how many more options are you likely to receive and when

2) volitility and historical trading ranges of the company's stock

3) what is the buzz in the company regarding option exercises

4) is senior mgmt buying or selling

5) do you have a need for the cash (pay down debt, bet on a sure thing at the track, etc.)

Best of luck,

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