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“The more the gap exists between these two events, the risk also increases dramatically,” said Sandeep Jethwani, co-founder of Dezerv. The company could go through a difficult period, its sector could see a downturn or the broader market could correct between the exercise and sale, he said. Jethwani recommends keeping the gap between exercise and sale as short as possible instead of exercising early primarily to optimize taxes.
