In today's world, stock options are becoming an increasingly common form of compensation. Our advisors frequently consult with clients on the decisions related to the exercise of options and subsequent transactions in the securities acquired by the exercise of options. We are very familiar with the hazards of highly concentrated positions and are experienced with the use of various strategies designed to protect against the risk of a significant decline in price while maintaining the opportunity to gain from future increases in the price of the stock.

The three common types of options—Qualified, Non-Qualified and Incentive Stock Options, not only have different characteristics, but are also taxed very differently. We are experienced with Section 144 Rules pertaining to insider transactions and the complex tax and Securities Exchange Commission rules dealing with the exercise of options.

Holding a large position in a single stock exposes the holder to extreme volatility and the risk of dramatic declines in market value and net worth. We have worked with numerous clients holding concentrated positions. Over the years, we have developed and refined proprietary strategies designed to enable clients to successfully and comfortably deal with the conflicting issues created by concentrated positions.

Securities offered through Centaurus Financial, Inc., a Registered Broker/Dealer, Member FINRA/SIPC
James O. Davis, Registered Representative [California Insurance License #0712211]