You can exercise stock options at Fidelity online without calling — most of the time
Fidelity lets you exercise vested stock options through your online account or mobile app in most cases. You do not need to call unless your options fall into a category Fidelity's system cannot handle automatically, such as non-may have access to stock options with specific tax situations, options from a company that has been acquired, or restricted stock units that require special handling. For standard incentive stock options (ISOs) or non-may have access to stock options (NSOs) from your current employer, the online route is faster and leaves a record you can read.
The online process takes about five minutes once you log in. You choose the number of shares to exercise, confirm the cost basis and any withholding elections, and submit. Fidelity then processes the transaction and deposits the shares into your brokerage account. If you hit a roadblock — an error message, a greyed-out button, or an option type the system does not recognize — that is when a call to Fidelity's stock plan services team makes sense.
Key Takeaways
- Most stock options can be exercised through Fidelity's website or app without speaking to anyone, and the transaction settles within one to two business days.
- You will see your vested options listed in the "Stock Plans" or "Equity Awards" section of your account, along with the exercise price and expiration date.
- When you exercise, Fidelity will ask how you want to pay (cash, sell-to-cover, or broker-assisted cashless exercise) and whether to withhold taxes automatically.
- If the online system rejects your exercise request or your options came from a company acquisition or bankruptcy, calling Fidelity's stock plan team is the right next step.
- Fidelity's stock plan phone line is available during market hours, and you will need your account number and the number of shares you want to exercise ready when you call.
Where to find your stock options in your Fidelity account
Log into your Fidelity account online or open the mobile app. Look for a section labeled "Stock Plans," "Equity Awards," "My Workplace Benefits," or sometimes "Brokerage" — the exact name varies depending on whether your account is tied to your employer's plan or if you manage it independently. Once you find it, you will see a list of all your options: the company name, the number of shares, the exercise price (also called the strike price), the vesting schedule, and the expiration date.
Only vested options can be exercised. If an option shows a vesting date in the future, you cannot exercise it yet, and the online system will not let you proceed. Fidelity displays the vested balance and the unvested balance separately so you know exactly how many shares you can act on right now.
How to exercise options online step by step
Once you have located your options, click on the option grant or the "Exercise" button next to it. Fidelity will open a form asking you to enter the number of shares you want to exercise. You must exercise at least the minimum number Fidelity requires (usually one share, but check your plan documents) and no more than your vested balance.
Next, Fidelity asks how you want to pay the exercise cost. Your choices are usually cash (you pay out of pocket), sell-to-cover (Fidelity sells enough shares when ready to cover the cost and taxes), or broker-assisted cashless exercise (Fidelity borrows against the shares to cover the cost). Sell-to-cover is the most common choice because it requires no cash upfront. After you choose, Fidelity displays the tax withholding amount and asks whether you want to withhold taxes automatically or handle it separately.
Review the summary, confirm your choices, and submit. You will see a confirmation number. The shares will appear in your brokerage account within one to two business days, and you can read a confirmation document for your records.
When you need to call Fidelity instead
Call Fidelity's stock plan services team if the online system shows an error, will not let you proceed, or if your options fall into a special category. This includes options from a company that was acquired or merged, options from a company in bankruptcy, restricted stock units (RSUs) that require a different process, or options with unusual vesting schedules or tax elections.
You may also need to call if you want to exercise options but do not have enough cash and your plan does not allow sell-to-cover or cashless exercise. Fidelity's team can sometimes arrange a broker-assisted cashless exercise or other payment method that the online system does not offer. Have your account number, the number of shares you want to exercise, and your plan documents handy when you call.
What happens after you exercise
Once your exercise is complete, the shares belong to you and appear in your brokerage account. If you paid cash or used sell-to-cover, Fidelity handles the money movement automatically. If you used broker-assisted cashless exercise, Fidelity will send you a statement showing the loan and how it was repaid from the sale proceeds.
You are responsible for reporting the exercise on your taxes. For incentive stock options, the tax treatment depends on when you sell the shares and how long you hold them. For non-may have access to stock options, you owe ordinary income tax on the difference between the exercise price and the fair market value on the exercise date. Keep your Fidelity confirmation documents and any tax forms your employer sends (usually a Form 3921 for ISOs or Form 3922 for NSOs) to give to your tax preparer.
Sell-to-cover versus other payment methods
Sell-to-cover is the easiest option if you do not have cash on hand. Fidelity automatically sells enough of your newly exercised shares to cover both the exercise cost and your tax withholding. You keep the remaining shares, and the whole transaction settles in one to two business days. The downside is that you lose some shares to the sale, so your net gain is smaller.
If you have cash in your account or can deposit it, paying cash keeps all the shares you exercise. You own them outright and can hold or sell them whenever you want. Broker-assisted cashless exercise is similar to sell-to-cover but may offer more flexibility if your plan restricts which payment methods are allowed. Ask Fidelity which methods your specific plan supports before you exercise.
Tax withholding when you exercise
When you exercise non-may have access to stock options, Fidelity must withhold taxes on the gain (the difference between the exercise price and the stock price on the exercise date). The withholding rate varies by state and your tax situation, but Fidelity will calculate and display it before you confirm. You can usually choose to have Fidelity withhold automatically (deducted from the sale proceeds if you use sell-to-cover, or from your cash balance if you pay cash) or to handle withholding separately.
For incentive stock options, withholding works differently and may not be required at exercise time. Check your plan documents or ask Fidelity's team about the tax treatment of your specific options. Withholding is not the same as your actual tax bill — you will still owe taxes when you file your return, and you may owe more or less depending on your income and how long you hold the shares.
Frequently Asked Questions
Can I exercise options on a weekend or after market hours?
You can submit an exercise request through Fidelity's website or app at any time, but Fidelity processes it during market hours (9:30 a.m. to 4 p.m. Eastern, Monday through Friday). Requests submitted after hours or on weekends will be queued and processed the next business day. The shares will settle one to two business days after processing.
What if I do not have enough cash to exercise and sell-to-cover is not an option?
Call Fidelity's stock plan team to ask about broker-assisted cashless exercise or other payment arrangements. Some plans allow this method even if it is not shown in the online system. Fidelity can also tell you whether your plan allows a loan against the shares or a delayed payment option.
Do I have to exercise all my vested options at once?
No. You can exercise any number of vested shares up to your total vested balance, and you can exercise the rest later. Each exercise is a separate transaction. This lets you spread out the tax impact or wait for the stock price to rise before exercising the remaining shares.
What if my company was acquired and my options are now with a different company?
Call Fidelity's stock plan team. Acquisitions often change the terms of options or move them to a new plan administrator. Fidelity can look up your options under the new company name and tell you whether they can still be exercised online or if special handling is needed.
Can I undo an exercise after I submit it?
Once Fidelity processes your exercise, it cannot be undone. If you submitted a request by mistake, call Fidelity when ready — if the request has not yet been processed, they may be able to cancel it. If it has already settled, your only option is to sell the shares you just received.