@yashK I actually read over Rule 39-22-109 at this link and found some pretty interesting facts. The general rule states that "a Nonresident who derives income from sources in Colorado and who has Nexus must file a Colorado income tax return and pay Colorado income tax on Colorado net taxable income. Deferred recognition of any income from sources in Colorado remains Colorado-source income when such income is finally recognized".
Based on this, my opinion is since the stock option was granted in Colorado, then it is Colorado sourced income. Further more, there was deferred recognition of income when the options were exercised but according to this rule, it still remains Colorado-Source income and I would report it as such.
Thank you for making me aware of this document.
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