minimize any ordinary compensation income resulting from exercise of the option; and start the capital gains holding period for the stock underlying the option before the option would otherwise vest.

“Early exercising” refers to exercising a stock option before it has fully vested, so you own the shares sooner (although they remain subject to the same vesting conditions as the stock option). For ...

Most options traders design their positions based on their outlook for the future and expect to hold their options until either they decide to close the trade or the options expire. Early exercise can ...