exercising stock options

So wanted to get money talk's thought on this.

So I have a non trivial number of stock options, and our stock is over its 52 week high and within 5% of our 10 year high. So I think its ripe to exercise them. Anyway, I really see two potential ways to do this:
- Execute and sell - net the proceeds
- Execute, sell enough to cover costs and hold [Cash isn't a problem but its a "special" account which is a pain to transfer funds to]

Ideally I would hold them to minimize my tax burden but I dunno what is going to happen with the fiscal cliff.

here are some additional details
- I am bullish on the company's future. I like our strategy and ability to execute.
- Our stock price is a fricking yo-yo. Our price will fluctuate 30% in a year.
- This year wasn't a great year for our personal income, it was a good 15% off of last year. I expect our income to be higher next year.
- Our 401k match is in company stock, so I have a good bit invested in the company long term (maybe 3-5% of our net worth)

I am leaning to an exercise and sell, but wanted to see if I was missing anything.