at due based on the market price at the time of execution and not at the strike, or exercise, price. So if management were planning to exercise a great number of available options it would be to their benefit from a tax standpoint to option while the market is down. In our case, we sold at the same time we exercised. A person exercising and holding would be liable for taxes on the immediate profit from .0745 to .58 or whatever market value was at the time of execution. I could be totally out in left field here but I believe I am at least close...