can you do option trade against your company stock

Jun 11, 2020 25 Comments

as part of your company trading policy, is it allowed to do option trading against your company stock while being an employee.

open window or black out period doesnt matter but can you option trade at all ??

any comments?

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TOP 25 Comments
  • New
    Coatue

    New

    Coatue
    I don't have money left over from my SPY shorts so this isn't relevant for me
    Jun 11, 2020 0
  • Walmart
    AFamilyMan

    Go to company page Walmart

    BIO
    Been there, done that. Grey hairs.
    AFamilyMan
    Can not do put, call is allowed in many companies.
    Jun 11, 2020 0
  • Amazon
    rasp58

    Go to company page Amazon

    rasp58
    Amazon doesn’t allow it for any employee unless you get special clearance. That being said, it’s pretty hard to enforce as compliance doesn’t have your brokerage account info like they would in a bank.
    Jun 11, 2020 3
  • It might not be technically called Insider trading nor it is illegal. Companies allow ESPP for a reason that employees share a success by going long on company stock.
    The moment you bring in Options, you can sell calls, buy puts or any other strategy that is equivalent to shorting. It is unethical to do so for the company you work for. How can you explain to your shareholders if they know that your company allows options trading to employees?
    Jun 11, 2020 3
  • VMware
    fqAa27

    Go to company page VMware

    fqAa27
    Zero companies allow option trading against your own company stock.
    Jun 11, 2020 10
    • VMware
      fqAa27

      Go to company page VMware

      fqAa27
      Microsoft lets you buy put options on MSFT stock as an employee? That cannot possibly be correct

      I'm sure they don't have a way of checking or enforcing their policy however...
      Jun 12, 2020
    • It sucks but it's a conflict of interest. I'm really disappointed I can't do it. But you could potentially buy puts or even short calls and then purposely do something stupid at work like cause sevs, etc and profit. Really dumb.
      Jun 13, 2020