Buying protective put to hedge values of RSUs
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.
If you’re allowed to you should. It’s we worth the option premium even tho it fees expensive
I am aware I may not be able to do it but how about if a family member does it? Or a spouse?
Insider trading includes family members
Seems like you could do this prior to becomng a fte, as you wouldn't yet have these restrictions and know the rsu totals
Sell covered calls on the vested stocks for generating monthly incomes
They have to check rules for this. Some companies do not allow any derivative trading of their stock for employees.
Covered calls are generally exempt since it doesn’t fall under the class of speculation.. But, yeah better to confirm first..
Many companies prohibit their employees from buying options in their own stock. Do check before going down that path.
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.
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.