Contact your company’s plan administrator and indicate you’d like to cash out your stock. Investors will buy your shares, just as they’d buy other shares of publicly-traded stock. The stockbroker will take a percentage of the price you receive as a fee for handling the trade and you’ll receive a check for the rest.

Are stock options worth anything?

This right has the potential to be very valuable. If the future stock price equals the grant price or is lower than the grant price (a bad market), your stock options have no current value. The value in the stock option lies in the opportunity to profit if the stock price goes up in the future.

How do I know what my stock options are worth?

The quick way of calculating the value of your options is to take the value of the company as given by the TechCrunch announcement of its latest funding round, divide by the number of outstanding shares and multiply by the number of options you have.

What’s the difference between stock options and cash options?

For cash-settled options, upon exercise, a cash payment is exchanged rather than delivery of the actual physical underlying asset. An employee stock option is a grant to an employee giving the right to buy a certain number of shares in the company’s stock for a set price.

Can a stock option be granted out of the money?

In the vast majority of cases, options are granted “at the money, ”which means that the exercise price matches the stock price at the time of the grant. A small minority of options are granted “out of the money,” with an exercise price higher than the stock price—these are premium options.

Are there commissions for cash-based option exercises?

Notably, most brokerage firms charge commissions for cash-based option exercises. Not surprisingly, there are a host of indices that underlie cash-based options. These include the New York Stock Exchange, the S&P 500 Index, and the S&P 100 Index.

What are the advantages of cash based options?

This option is advantageous for investors who want to capture movements in stock prices only but don’t want to be required to enter a position after the exercise of an option. In other words, the holder is not required to purchase the underlying asset in cash-based options.