What happens if I sell my employee granted stock options that are underwater?

[oceanbay]

I came into my current company at a horrible time. We just acquired another big company and the day I started (and the day of my strike price) is currently triple what the stock has traded for the three years I have been here. I plan on quitting in a few months and I highly doubt my stock will be above water then.

So my question is, is there any benefit to me at all (tax or otherwise) for me selling a big chunk of stock options that are underwater? If not, they are completely useless anyway, so I thought I'd ask.

Thanks!

[tacpoly]

It will not benefit you at all to exercise options when they are underwater.

Usually the ISO plan is set up so that former employees have 90 days after they leave the company to exercise stock. So I would still keep an eye out on stock in case it in the money. You can also set up a sell order at a certain price.