The Case for Early NSO Exercise: Why Planning Now Could Save You Big Later

“When should I start planning around my stock options?” It’s a question I get all the time from startup employees. And my answer is usually simple: Right now. Waiting for liquidity often means missing your best shot at tax savings. In this article, we will focus on Non-Qualified Stock Options (NSOs). If you have Non-Qualified Stock Options (NSOs), one move to consider is exercising them before a liquidity event, usually when your "spread" is tighter.