How to sell RSUs outside trading windows
For companies with trading windows, such as Facebook / Google, how can one sell RSUs outside trading windows? Is "limit sell" an option to sell outside the trading windows? Meaning, set the limit sell order during trading window, and it can be triggered outside the trading window. Are there other ways to sell RSUs outside trading windows?
Look into 10b5 plans. Definitely do not try to play tricks to sell outside of window. Insider trading is no joke.
This is America, rich people don’t get in trouble
While I agree in part, tell that to that Netflix engineer who got 2 years.
If what you want to do is lock in the profit with current price, you can buy puts. It's like an insurance, caveat is you also loose potential gains.
Most companies don't allow you to trade options on their stock as an employee, so that's probably not an option (no pun intended).
leave the company
You’re supposed to cancel existing orders when the trading window begins. Some companies have insider trading agreements which allow exceptions to let you participate in ESPP or sell a stock grant the day it’s received. I’d take a look at that, and contact your company to ask (the agreement should have a POC).
Got it. So, if I set a limit order with expiration date set to a date before trading window closes, than this is ok, but limit orders triggered outside trading window is still a case of insider trading.
What do u know OP
Follow-up question: How about selling covered calls? Should the covered call strike date be inside the trading window, and is this the only way one can sell covered call? Both the start date and end date of the covered call sell must be inside the trading window (which is usually a month)?
People can always exercise your call anytime before expiration
This is not allowed. If you do what you are proposing. You will be fired for violating insider trader policy When you put limit sell that order only applies within trading window. Once trading window expires the order gets canceled by broker. At least E*trade does this You cannot do calls or options trading too
10b5 plans are the way to go. The really big companies, with the brokerage firms handling the rsu grants, usually make this pretty boilerplate if you want to do it I believe one limitation of the 10b5 is if you want to sell any of your already vested shares in the company, they become restricted unless you also fold in the selling into the 10b5 plan
Set your tax to 100% in brokerage, they will sell all stocks “for taxes” as soon as received. Then claim your cash back from feds in April.
I think limit sell is the same as market sell in this context. Imaging you have insider info and know that price will go up outside trading window, so you set a limit sell. That's still insider trading. In short, no you can not do any trading outside trading window.