[abalone]

I would add one thing: if you're really going to exercise options before you can sell them, which is what this article's about, you really should calculate the tax consequence beforehand. As is only hinted in the article, the AMT can be enormous if the valuation has grown a lot since the grant date.

[hesdeadjim]

Also an issue with NQSOs, though AMT doesn't enter the picture just regular cap "gains" (I use the term loosely because the IRS doesn't care that you have no way of actually realizing that gain as cash).