I have about the same net value in each. I'm not sure it make a difference but was just curious.
Hi David, I have a few questions before I can offer advice. Where these stock options incentive stock options (ISO) or non-qualified stock options (NSO)? Or Restricted Stock Units (RSU) that were granted to you? If so, long since they were granted and exercised? Have you paid taxes on the options yet? Understanding your cost basis in an important part of your decision of which to sell. Have you owned the stock longer than 12 months? Sorry I cannot just give you an answer...need more details! -Steve
Hi, I would additionally ask whether the stock options pertain to a stock that is lightly traded and therefore subject to volatility or the risk of illiquidity. Or are the options for a high quality blue chip stock?
In addition to the above points, there may be significant tax implications to selling the stock options. Have an advisor or accountant review this closely so you understand all of the downstream effects of this decision.
This is a great question! I wrote a pretty extensive article on this subject a couple years ago that outline all the advantages and disadvantages of each. Hope it's helpful: http://olesenwm.com/2011/12/rsus-or-options-which-should-employees-choose/
Please have a personalized analysis done by a professional to determine the answer to your question. Bottom line... it depends on the stock options and the stocks you own.
Examples - If an option is not yet in the money, you may want to wait and not sell depending on the time value. If you own a stock that pays a great dividend, you may want to wait and not sell so you do not give up the cash flow.