When you exercise an option, you are paying the strike price for something that ... | Hacker News

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		schrodinger on May 2, 2016 \| parent \| context \| favorite \| on: Handcuffed to Uber When you exercise an option, you are paying the strike price for something that may be worth more. For example, you may have an option with a strike price of $1, but the shares are currently worth $10. That $9 is considered taxable income.

URSpider94 on May 2, 2016 [–]

That's not quite right. It's not taxable income, per se, but it is figured into calculating the alternative minimum tax (AMT).

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