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Lesson 7. When to Exercise Your Options > Cashing In on Your Options - Pg. 32

32 Chapter 7. When to Exercise Your Options In this lesson, you will learn when to exercise your employee stock options. Cashing In on Your Options Employee stock options can be a great wealth-building tool if you know how to fit them into your total investment plan. Even if you don't have an investment plan, you can use stock options to help you meet long- or short-term financial goals. Options don't require you to do anything, but if you are going to take advantage of their potential, you'll have to make some decisions. These decisions involve when and how to exercise your op- tions. (This, of course, assumes your options are "in the money.") Many owners of nonstatutory stock options exercise their options and immediately sell the stock. This may not always be the best strategy. Tip You have many alternatives to consider when deciding how to handle your options. This