def question_4(self):
self._qst(4, "How much cash if we sell it all (starting with the expensive NSOs)?")
orders = myMeager.sales_orders_all(self.m,
nso_first=True,
cheap_first=False)
self.m.override(self.e.sales_orders, orders)
self.rep.print_grants()
self.rep.print_tax_summary()
print()
print("Share Price: $ %.2f" % m.ipo_price_usd)
print("NSOs Sold: %s" % comma(m.shares_sold_nso_n,
dec=False, white=False))
print("NSO Income: $ %s" % comma(m.nso_income_usd,
dec=False, white=False))
print("ISOs Sold: %s" % comma(m.shares_sold_iso_n,
dec=False, white=False))
print("ISO Income: $ %s" % comma(m.iso_sales_income_usd,
dec=False, white=False))
print("RSUs Sold: %s" % comma(m.shares_sold_rsu_n,
dec=False, white=False))
print("RSU Income: $ %s" % comma(m.rsu_income_usd,
dec=False, white=False))
print("Sale Income: $ %s" % comma(m.rsu_income_usd
+ m.nso_income_usd
+ m.iso_sales_income_usd,
dec=False, white=False))
print("Owed: $ %s" % comma(m.outstanding_taxes_usd,
dec=False, white=False))
print("We Clear: $ %s"%comma(m.cleared_from_sale_usd, dec=False, white=False))
print()
print("This is AFTER paying all outstanding taxes.")
def question_6(self):
self._qst(6, "If we sell it all, how many ISOs can we buy w/o AMT?")
orders = myMeager.sales_orders_all(self.m)
self.m.override(self.e.sales_orders, orders)
self.rep.print_grants()
self.rep.print_tax_summary()
print()
print("Just using the first ISO strike price we find for starters.")
cleared = m.cleared_from_sale_usd
(amt, n, strike, cost) = self.amt_free_iso()
remaining = cleared - cost
print("AMT Income Gap: $ %s" % comma(amt, dec=False, white=False))
print("Exercisable shares: %s" % comma(n, dec=False, white=False))
print("Strike Price: $ %s" % comma(strike,
dec=True, white=False))
print("Exercise Cost: $ %s" % comma(cost, dec=False, white=False))
print("Cash Cleared: $ %s" % comma(cleared,
dec=False, white=False))
print("Cash Remaining: $ %s" % comma(remaining,
dec=False, white=False))
def question_9(self):
self._qst(9, "What does exercisable ISOs look like vs IPO price?")
m = self.m
e = m.enum
# Set up the loop
lo = 12.0 # low fmv
hi = 15.0 # high fmv
up = 100
orig = m.ipo_price_usd
x = []
y_iso_n = []
y_gross = []
y_tax = []
y_cleared = []
y_ex_cost = []
y_rem = []
y_test = []
y_amt_diff = []
m.override(self.e.query_date, '3/15/21')
#m.override(self.e.query_date, '12/31/35')
# triggers for vertical lines
amt_exemption_rolloff = -1
amt_exemption_gone = -1
iso_saturated = -1
rolloff_val = -1
gone_val = -1
for i in range(up):
fmv = (i * (hi - lo) / up) + lo
x.append(fmv)
m.override(e.ipo_price_usd, fmv)
orders_all = myMeager.sales_orders_all(m,
nso_first=True,
cheap_first=False,
prefer_exercise=True,
restricted=False,
price=fmv)
orders_opts = myMeager.sales_orders_options(m,
nso_first=True,
cheap_first=False,
prefer_exercise=True,
restricted=False,
price=fmv)
orders_rsu = myMeager.sales_orders_rsu(m, price=fmv)
self.m.override(self.e.sales_orders, orders_all)
(amt, iso, strike, cost) = self.amt_free_iso()
if (0 > amt_exemption_rolloff and m.amt_base_income_usd >
m.amt_exemption_rolloff_threshhold_usd -
10 * m.ipo_price_usd and m.amt_base_income_usd <
m.amt_exemption_rolloff_threshhold_usd +
10 * m.ipo_price_usd):
amt_exemption_rolloff = fmv
rolloff_val = iso
if (0 > amt_exemption_gone and 0 < amt_exemption_rolloff
and m.amt_exemption_usd == 0):
amt_exemption_gone = fmv
gone_val = iso
if ((0 > iso_saturated)
and (iso >= m.shares_vested_outstanding_iso_n)):
iso_saturated = fmv
m.override(self.e.iso_exercise_income_usd, amt)
a = m.fed_reg_income_taxes_usd
b = m.amt_taxes_usd
y_iso_n.append(iso)
cleared = m.cleared_from_sale_usd
y_gross.append(m.total_income_usd)
# y_tax.append(m.outstanding_taxes_usd)
y_cleared.append(cleared)
y_ex_cost.append(cost)
# y_rem.append(cleared - cost)
m.override(e.ipo_price_usd, orig)
# Let's make our plots
fig, ax_shares = plt.subplots()
ax_shares.set_xlabel('Share Price (USD)')
ax_shares.set_ylabel('ISOs (n)')
ax_shares.plot(x,
y_iso_n,
label='AMT Free ISO Exercises',
color='tab:purple')
color = 'tab:green'
ax_dollars = ax_shares.twinx()
ax_dollars.set_ylabel('Value ($k)')
y_cleared = [x / 1000 for x in y_cleared]
y_gross = [x / 1000 for x in y_gross]
y_ex_cost = [x / 1000 for x in y_ex_cost]
y_rem = [x / 1000 for x in y_rem]
ax_dollars.set_ylim(0, y_gross[-1] * 1.1)
ax_dollars.plot(x, y_gross, label='Pre-Tax Income')
ax_dollars.plot(x, y_cleared, label='Post-Tax Cash from Sale')
# ax_dollars.plot(x, y_tax, label='Taxes Owed')
# ax_dollars.plot(x, y_cleared, label='Post-Tax Income')
#ax_dollars.plot(x, y_ex_cost, label='Cost to Exercise')
# ax_dollars.plot(x, y_rem, label='Remaining')
if 0 < amt_exemption_rolloff:
ax_shares.axvline(amt_exemption_rolloff)
ax_shares.text(amt_exemption_rolloff,
rolloff_val * 1.05,
'AMT Rolloff',
rotation=45)
if 0 < amt_exemption_gone:
ax_shares.axvline(amt_exemption_gone)
ax_shares.text(amt_exemption_gone,
gone_val * .95,
'AMT Exemp. Gone',
rotation=45)
if 0 < iso_saturated:
ax_shares.axvline(iso_saturated)
ax_shares.text(iso_saturated,
m.shares_vested_outstanding_iso_n * .95,
"All ISO's Available",
rotation=0)
fig.suptitle('ISO Outlook vs FMV')
ax_shares.legend(loc=3)
ax_dollars.legend()
fname = 'iso.png'
path = os.path.join('.', fname)
fig.savefig(path, transparent=False, dpi=600)
def question_8(self, rsu_only=False):
augment = "RSU + NSO"
if rsu_only: augment = "RSU Only"
self._qst(8, "Basic financials vs share price (%s)" % augment)
m = self.m
e = m.enum
# Set up the loop
lo = 5.0 # low fmv
hi = 25.0 # high fmv
up = 100
orig = m.ipo_price_usd
x = []
y_gross = []
y_net = []
y_tax = []
y_amti = []
amt_exemption_rolloff = -1
amt_exemption_gone = -1
for i in range(up + 1):
fmv = (i * (hi - lo) / up) + lo
x.append(fmv)
m.override(e.ipo_price_usd, fmv)
orders = myMeager.sales_orders_all(m,
nso_first=True,
cheap_first=False,
prefer_exercise=True,
restricted=True,
price=fmv)
if rsu_only:
orders = myMeager.sales_orders_rsu(self.m, price=fmv)
self.m.override(self.e.sales_orders, orders)
if (0 > amt_exemption_rolloff and m.amt_base_income_usd >
m.amt_exemption_rolloff_threshhold_usd):
amt_exemption_rolloff = fmv
if (0 > amt_exemption_gone and m.amt_exemption_usd == 0):
amt_exemption_gone = fmv
m.override(e.iso_exercise_income_usd, 0)
m.override(e.ext_amt_income_usd, 0)
y_gross.append(m.total_income_usd - m.reg_income_usd)
y_tax.append(m.outstanding_taxes_usd)
y_amti.append(m.amt_taxable_income_usd)
y_net.append(m.cleared_from_sale_usd)
# Reset our state
m.override(e.ipo_price_usd, orig)
# Let's make our plots
fig, ax = plt.subplots()
ax.set_ylabel('Value (USD)')
ax.plot(x, y_gross, label='Gross Sales Income (post Withholding)')
ax.plot(x, y_tax, label='Outstanding Tax Bill')
ax.plot(x, y_amti, label='AMTI')
ax.plot(x, y_net, label='Net Income from Sale')
if 0 < amt_exemption_rolloff:
ax.axvline(amt_exemption_rolloff)
ax.text(amt_exemption_rolloff,
m.amt_exemption_rolloff_threshhold_usd * 1.1,
'AMT Rolloff',
rotation=45)
if 0 < amt_exemption_gone:
ax.axvline(amt_exemption_gone)
ax.text(amt_exemption_gone,
m.amt_exemption_rolloff_threshhold_usd * 1.1,
'AMT Exemp. Gone',
rotation=45)
ax.grid()
fig.suptitle('Financials vs FMV (%s)' % augment)
ax.legend()
fname = 'fin_all.png'
if rsu_only: fname = 'fin_rsu.png'
path = os.path.join('.', fname)
fig.savefig(path, transparent=False, dpi=600)