"Or In Other Words, Sell MAG Silver." Otto Not so quick, Byz. The tax implications are an immediate result of the exercize price of the Co whose options are exercized so as protection from a price drop, shares exercized are in most cases sold the day of exercize. John Roth of Nortel fame brought public attention to the practice the day he exercized $140MM in Nortel options selling them the same day to cover his tax bill resulting from that day's share price. If he'd have waited untill they traded at $0.19, his tax assessment would have been based on the SP the day he exercized, not $0.19! RUF