ISO vs NSO planner

Exercise now, or later?

Compare four exercise-and-sell strategies side by side, after federal and state tax, and find the share price where holding pays off.

Your tax profile (used by every tool)

Filing status

2026 wages + other income ($)

State income tax rate (%)

Option scenario planner

Option type

Shares to exercise

Strike price ($)

Share price today ($)

Expected price at future sale ($)

Assumes your income is the same in the exercise and sale years. "Hold over 1 year" for ISOs also assumes the sale is more than 2 years after the grant date. FICA is applied to NSO spreads only (ISOs are exempt).

After-tax profit by strategy

Strategy	Cash upfront	Total tax	Net profit
Exercise & sell today	$0	$63,440	$126,560
Exercise now, sell after 1+ yr	$105,586	$102,706	$137,294
Exercise now, sell within 1 yr	$60,000	$85,201	$154,800
Wait, exercise & sell later	$0	$83,301	$156,700

Holding 1+ year beats selling today only if the stock is above $28.59 when you sell (+14% from today), before any AMT credit you recover later. The hold path needs $105,586 in cash upfront, including $45,586 of AMT. Weigh that against how much of your net worth rides on the next catalyst.

ISO vs NSO

NSO: the spread at exercise (price minus strike) is taxed as wages: income tax plus Medicare/FICA. Your basis resets to the exercise price.
ISO: there's no regular tax at exercise, but the spread counts toward AMT if you hold past December 31. Hold more than 1 year after exercise and 2 years after grant, and the whole gain is long-term.

The biotech twist

Holding ISOs for long-term treatment means a year of single-stock risk. One readout or complete response letter (CRL) can wipe out the tax savings.
Exercise and sell in the same calendar year and the AMT goes away, because the sale is disqualifying.
AMT you pay can come back over later years as a credit, but slowly.

Coming next

Built for the moments that only happen in biotech.

Taxes

RSU withholding gap

Your company withholds 22% on vests, but your bracket may be 35%. See what you'll owe in April before it's a surprise.

Compliance

10b5-1 & trading windows

Plan sales around blackout periods and set up a 10b5-1 plan before the next readout.

Playbook

"We're being acquired"

What happens to your unvested RSUs, underwater options and ESPP in a deal.

Get the full tracker first

Live share prices, vest reminders, readout-risk alerts and a biotech equity newsletter. Free for early members.

We'll only use your email for BiotechFIRE updates. See our privacy policy.