Has it occurred to you that there is an opportunity to roll your ESOPs into cash while continuing to participate in your stock?

You can use a stock loan to advance the amount you need to convert your options into stock.

By rolling your options into stock loans immediately, there’s no out-of-pocket expense and you maximize leverage in the your equity. Interestingly enough, your exercising the option gives the issuer a cash infusion which, if managed correctly, could in turn assist the value of the stock.

Example

Suzie Shareholder owns 100,000 stock options exercisable @ $1 per share. The stock trades at $3/share. Suzie wants to exercise the options, but she doesn't have $100,000 at the moment (who does?)

The stock loan advances the $100,000, and goes against the $300,000 portfolio that comes about by way of the options exercise.

A 90% advance would be $270,000, minus the $100,000 advanced. Suzie receives $170,000 (the cash difference) and the loan has leveraged the full 100,000 share position – all without writing that $100,000 check.

 Call me Traci Gregory 678.677.7669

or send me an email - traci@tracigregory.com