What happens to my stock options if I leave the company?

You usually have a limited post-termination exercise window — commonly around 90 days, though it varies — to exercise your vested options before they expire. Unvested options normally lapse when you leave. For ISOs, the favourable tax treatment generally ends 90 days after leaving even if the company allows a longer window. Check your grant for your exact deadline.

What happens to unexercised options if my company is acquired?

It depends on the deal terms. Vested options may be assumed or converted into the buyer's equity, cashed out for their net value, or — if out of the money — cancelled. Some grants also accelerate vesting on a change of control. If your exercise window closes before the deal completes, you may have to decide whether to exercise (and pay) before knowing the outcome.

Should I exercise before an acquisition closes?

It's a genuine judgement call with no risk-free answer. Exercising commits cash (and possibly tax) on the bet the deal closes on good terms; letting the window lapse avoids that risk but means you get nothing if the deal closes high. Weigh the strike-vs-value gap, your acceleration terms, the deal certainty, and get professional tax advice before committing.

Exercising options · US

What happens to your stock options if you leave — or the company is acquired — during your exercise window?

Two deadlines can collide: the limited window to exercise vested options after you leave, and a company sale that lands in the middle of it. Here’s what actually happens to your options, and how to avoid losing them.

This is one of the most stressful — and misunderstood — situations an option-holder can face. You’ve left (or are leaving) a company, you hold vested but unexercised options, and something is moving: an acquisition, or just the ticking clock of your post-termination window. Get the timing wrong and options worth real money can simply vanish.

The post-termination exercise window

When you leave a company, you usually have a limited time to exercise your vested options before they expire — the post-termination exercise (PTE) window. It’s commonly around 90 days, but it varies widely: some companies offer longer (a few years), and for ISOs specifically, the favourable tax treatment generally ends 90 days after leaving even if the company allows a longer window (they convert to NSO treatment after that). Check your own grant — this single deadline is often the most urgent thing on the page.

If the company is acquired while you still hold options

What happens to unexercised vested options in an acquisition depends entirely on the deal terms, but the common outcomes are:

Assumed or converted. The buyer swaps your options for options (or shares) in the acquiring company on agreed terms.
Cashed out. Your options are paid out for the difference between the deal price and your strike (the “net” value) — sometimes only if they’re “in the money.”
Cancelled. Out-of-the-money options (strike above the deal price) are frequently cancelled for nothing.
Accelerated. Some grants have acceleration on a change of control — single-trigger (vesting speeds up on the sale) or double-trigger (on the sale and if you’re let go). This can turn unvested options into vested ones.

The trap: if your PTE window closes before the acquisition completes, you may have to decide whether to pay to exercise now — committing real cash and possibly tax — on the bet that the deal closes on good terms. If you let the window lapse to avoid the risk, and the deal then closes high, you get nothing. There’s no free option here; it’s a genuine judgement call.

What to do

Find your exact PTE deadline and whether it differs for ISO tax treatment. Ask the company in writing.
Get the current value and your strike — the gap tells you if exercising is even worthwhile. Our free calculator shows the cash (strike + estimated tax).
Ask about any pending transaction and your acceleration terms — these change the maths completely.
If exercising is right but the cash isn’t there, some people sell a slice of shares (once exercised and transferable) or use financing rather than paying fully out of pocket.
Confirm the tax with a professional before you commit — exercising can trigger AMT (ISOs) or ordinary income (NSOs).

What happens to your stock options if you leave — or the company is acquired — during your exercise window?

The post-termination exercise window

If the company is acquired while you still hold options

What to do

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