If you exercise early and hold it for an year before selling them for cash then you pay less tax.
The way I see is options only make sense when you have the following aligned.
1) Employer grants options.
2) Every pay check you save enough for strike price and estimated tax hit.
3) Exercise early when the price is low (assuming IPO will happen while you're still employed)
4) Sell when IPO or later when price is good after one year or more of exercise.
Or may be sell in bits to stay under the aggressive tax rates.
The way I see is options only make sense when you have the following aligned.
1) Employer grants options. 2) Every pay check you save enough for strike price and estimated tax hit. 3) Exercise early when the price is low (assuming IPO will happen while you're still employed) 4) Sell when IPO or later when price is good after one year or more of exercise.
Or may be sell in bits to stay under the aggressive tax rates.