There are two types of stock options– incentive stock options (ISOs) and non-qualified stock options (NQSOs). They have many similarities, including a strike price, a vesting schedule, and an expiration date.
NQSOs are generally considered simpler, primarily because of tax. When you exercise NQSO, the bargain element is taxed as ordinary income. ISOs are more complicated, particularly because of the AMT, the potential for long-term capital gains, and the holding period requirements of a qualified sale.
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