Buying protective put to hedge values of RSUs

Mar 25, 2018 11 Comments

I recently got a job at Amazon and got RSUs as part of my comp package. I’m sure most ppl have this as it’s pretty standard at all major tech companies. I was wondering what rules for buying a protective puts are to hedge the values of our rsu’s. Has anyone thought of this? Even if we can’t hold an option or shout our company’s stock can a family member? Love to hear other people’s takes. I can understand why the company wants to give us equity but if we want to bank on steady income stream seems like protective put is smartest thing to do.


Want to comment? LOG IN or SIGN UP
TOP 11 Comments
  • Qualcomm JmFx26
    Many companies prohibit their employees from buying options in their own stock. Do check before going down that path.
    Mar 25, 2018 3
    • New DuQvV7
      I don’t know this to be true.

      At most it will be “some”, not “many”. And outside specific level of employees i don’t know if any specific restrictions.

      Care to share a link.

      Me: Decade doing dev work for a heavily regulated trading firm.
      Mar 25, 2018
    • Amazon hUlak
      This is the case at Amazon. Trading in options has to be approved by legal per insider trading policy. It probably won’t be approved.
      Mar 25, 2018
    • Amazon / Eng ᕕ( ᐛ )ᕗ
      Yes, I thought of this too, and no you can’t do it. Option trading is prohibited for employees unless you specifically get approval.
      Mar 25, 2018
  • New Hbj864
    Sell covered calls on the vested stocks for generating monthly incomes
    Mar 26, 2018 2
    • Facebook lylak
      They have to check rules for this. Some companies do not allow any derivative trading of their stock for employees.
      Mar 27, 2018
    • New Hbj864
      Covered calls are generally exempt since it doesn’t fall under the class of speculation.. But, yeah better to confirm first..
      Mar 27, 2018
  • Juniper lDvY67
    Seems like you could do this prior to becomng a fte, as you wouldn't yet have these restrictions and know the rsu totals
    Mar 25, 2018 0
  • Facebook lylak
    Insider trading includes family members
    Mar 25, 2018 0
  • FactSet jnel
    I am aware I may not be able to do it but how about if a family member does it? Or a spouse?
    Mar 25, 2018 0
  • Tableau mwky30
    If you’re allowed to you should. It’s we worth the option premium even tho it fees expensive
    Mar 25, 2018 0


    Real time salary information from verified employees