Delawaredave5
Full time employment: Posting here.
- Joined
- Dec 22, 2004
- Messages
- 710
Wife has a small amount of Megacorp options expiring.
Says there's 4 ways to execute:
1. Cashless Sell: options are executed and net proceeds are cash to you
2. Cashless Hold: options are executed and net proceeds are shares of Megacorp to you
3. Cash Purchase: you supply cash and you end up with shares bought at lower price
4. Stock Swap: I guess you supply other shares of stock which are sold/exchanged to execute options (I didn't follow this).
For 1 and 2 above - any proceeds are short term gains - right ?
For 3 and 4, you end up with shares of Megacorp - which if you hold for a year and then sell results in long term gain - right ?
Thanks !
Says there's 4 ways to execute:
1. Cashless Sell: options are executed and net proceeds are cash to you
2. Cashless Hold: options are executed and net proceeds are shares of Megacorp to you
3. Cash Purchase: you supply cash and you end up with shares bought at lower price
4. Stock Swap: I guess you supply other shares of stock which are sold/exchanged to execute options (I didn't follow this).
For 1 and 2 above - any proceeds are short term gains - right ?
For 3 and 4, you end up with shares of Megacorp - which if you hold for a year and then sell results in long term gain - right ?
Thanks !