Stock Option Planning

Michael S. Patinella, P.L.L.C.

Certified Public Accountants

Maximizing the value of your Employee Stock Options (ESOs) is part art and part science. The challenge is to carefully consider the many variables that impact your ESOs and to plot a course that will result in achieving your personal financial goals. While many option-holders choose to either wait until expiration and hope for the best or cash-out their options when they need the money, a disciplined approach will enable you to make informed decisions regarding your ESOs.

To facilitate our planning discussions, we will utilize a 3-step “High Value Stock Option Planning” (HVSOP) process designed to:

Help you understand the value and dynamics of your option portfolio so that we can establish goals and an option strategy to guide future actions.
Monitor key changes in your option position so that appropriate actions are taken on a planned and timely basis.
Analyze various exercise & sell strategies when your monitoring criteria are triggered so that you can achieve your diversification, wealth accumulation and cash flow goals.

The HVSOP process begins with the development and review of your Personal Option Profile. This report is divided into four sections:

· Portfolio Value: The current in-the-money, cash-out and Black-Scholes values of your vested and unvested options.

· Investment Risk/Reward: The value and leverage of your options as the price of your company stock increases or decreases.

· Personal Risk/Reward: An evaluation of your option holdings in relationship to achieving your financial goals, and an analysis of the risk inherent in your current position.

· Monitoring: The events and ratios that will be used to monitor your option portfolio.

View Sample Personal Option Profile report

As you can see, a Personal Option Profile is a very comprehensive and valuable tool in assessing your stock option portfolio. Please contact us if you would like to discuss the details of the Sample Personal Option Profile report or if you would like us to develop a Personal Option Profile for you.

Information that we would need to develop a Personal Option Profile for you:

	Download and complete the Personal Option Profile Questionnaire.
	Your latest Grant Summary, similar to that on Appendix B, (page 11 of 11) of the Sample Personal Option Profile report.

Contact Information

Electronic mail
	Mike Patinella, CPA mike at patinella dot com (substitute"@" for "at" and "." for "dot" and remove spaces)	The e-mail address is presented in this fashion to help prevent phishing.
Office	Michael S. Patinella, P.L.L.C. 7025 N. Scottsdale Road Suite 115 Scottsdale,AZ 85253 Phone: (480) 663-6012 Fax: (480) 361-6204	Located one block northof Indian Bend Road on the East side of Scottsdale Road. view map