[equalizer]

[quote=flu]
Thanks equalizer. I’ll read up on this…
Trying to hedge against restricted stock grants were part of a comp package and perf bonus that I chosen lieu of additional cash comps (shares, not options). Just looking to mitigate losses on it (in this economy).

Come on, no QC’s or Illumina folks????[/quote]
The site I linked has a lot of info to snare the high brow SV big honchos. There seems to be little info on hedging unvested options, so hope that Stansd has the lowdown.

Here’s an interesting article:

“Buying Puts to Hedge Employee Stock Options or Long Stock has unique Tax Advantages”

http://www.optionsforemployees.com/articles/article.php?id=128

[equalizer]

Lighten up guys, it was a jab to remind people. I wasn’t born in 2005, just when I joined up here.

I was speaking to the 3 people who bought at the peak who haven’t walked away.

Try telling joke about low PT to one who paid 900K in Chula Vista in 2005. Lucky gal to the left in 2001 paid 450K in 2001 and the suckers’s mortgage is double and PT was double. And don’t forget builders throwing in the cost of the sink into Mello-Roos (hyperbole in case someone misses that too).

Renters don’t usually pay full share of the 2005 mortgage and PT, or face big PT and income tax at the same time.

[equalizer]

Lighten up guys, it was a jab to remind people. I wasn’t born in 2005, just when I joined up here.

I was speaking to the 3 people who bought at the peak who haven’t walked away.

Try telling joke about low PT to one who paid 900K in Chula Vista in 2005. Lucky gal to the left in 2001 paid 450K in 2001 and the suckers’s mortgage is double and PT was double. And don’t forget builders throwing in the cost of the sink into Mello-Roos (hyperbole in case someone misses that too).

Renters don’t usually pay full share of the 2005 mortgage and PT, or face big PT and income tax at the same time.

[equalizer]

Lighten up guys, it was a jab to remind people. I wasn’t born in 2005, just when I joined up here.

I was speaking to the 3 people who bought at the peak who haven’t walked away.

Try telling joke about low PT to one who paid 900K in Chula Vista in 2005. Lucky gal to the left in 2001 paid 450K in 2001 and the suckers’s mortgage is double and PT was double. And don’t forget builders throwing in the cost of the sink into Mello-Roos (hyperbole in case someone misses that too).

Renters don’t usually pay full share of the 2005 mortgage and PT, or face big PT and income tax at the same time.

[equalizer]

Lighten up guys, it was a jab to remind people. I wasn’t born in 2005, just when I joined up here.

I was speaking to the 3 people who bought at the peak who haven’t walked away.

Try telling joke about low PT to one who paid 900K in Chula Vista in 2005. Lucky gal to the left in 2001 paid 450K in 2001 and the suckers’s mortgage is double and PT was double. And don’t forget builders throwing in the cost of the sink into Mello-Roos (hyperbole in case someone misses that too).

Renters don’t usually pay full share of the 2005 mortgage and PT, or face big PT and income tax at the same time.

[equalizer]

Lighten up guys, it was a jab to remind people. I wasn’t born in 2005, just when I joined up here.

I was speaking to the 3 people who bought at the peak who haven’t walked away.

Try telling joke about low PT to one who paid 900K in Chula Vista in 2005. Lucky gal to the left in 2001 paid 450K in 2001 and the suckers’s mortgage is double and PT was double. And don’t forget builders throwing in the cost of the sink into Mello-Roos (hyperbole in case someone misses that too).

Renters don’t usually pay full share of the 2005 mortgage and PT, or face big PT and income tax at the same time.

[equalizer]

[quote=patientrenter]I don’t know if my company restricts me from betting against the company, whether it’s a hedge of my compensation or not. But I couldn’t seriously defend it in front of my company’s CEO, so I wouldn’t do it.[/quote]
My comments are for a public company only.

Short story is that it would imprudent at best to not hedge, especially a tech company. There could be 50% chance that ESO expire worthless, unless you are lucky enough to get daily repricing (I think the SEC doesn’t care for that anymore).

I’m sure that there are many employees who didn’t hedge 10 years ago and forwent financial security for their family. If execs believe that hedging is unethical, then how can they defend selling their stock to poor grannies right before stock tanks??

“Seldom do companies have a complete ban on using options to hedge the risks of holding ESOs. But there are cases of companies who believe hedging defeats the purpose of the ESO grant. Allegedly, these companies want to forge an alignment of interests. Those same companies allow and sometimes encourage the premature exercise of ESOs and sale of stock, which reduces the alignment of interests much more than hedging the ESOs. No reasonable person will argue that an employee who owns no ESOs or stock has a greater alignment of interests than an employee who owns substantially in the money ESOs and is short out of the money long term calls. But that is exactly what the design of some plans assumes, when restricting hedging.”

“Are there SEC Constraints on hedging?
SEC Section 16 b and Section 16 c of the 1934 Securities and Exchange Act apply only to officers, directors and owners of 10% of company equity. SEC Rule 10 b-5 applies to all buyers and sellers of securities”

http://www.optionsforemployees.com/articles/attachment.php?id=296

[equalizer]

[quote=patientrenter]I don’t know if my company restricts me from betting against the company, whether it’s a hedge of my compensation or not. But I couldn’t seriously defend it in front of my company’s CEO, so I wouldn’t do it.[/quote]
My comments are for a public company only.

Short story is that it would imprudent at best to not hedge, especially a tech company. There could be 50% chance that ESO expire worthless, unless you are lucky enough to get daily repricing (I think the SEC doesn’t care for that anymore).

I’m sure that there are many employees who didn’t hedge 10 years ago and forwent financial security for their family. If execs believe that hedging is unethical, then how can they defend selling their stock to poor grannies right before stock tanks??

“Seldom do companies have a complete ban on using options to hedge the risks of holding ESOs. But there are cases of companies who believe hedging defeats the purpose of the ESO grant. Allegedly, these companies want to forge an alignment of interests. Those same companies allow and sometimes encourage the premature exercise of ESOs and sale of stock, which reduces the alignment of interests much more than hedging the ESOs. No reasonable person will argue that an employee who owns no ESOs or stock has a greater alignment of interests than an employee who owns substantially in the money ESOs and is short out of the money long term calls. But that is exactly what the design of some plans assumes, when restricting hedging.”

“Are there SEC Constraints on hedging?
SEC Section 16 b and Section 16 c of the 1934 Securities and Exchange Act apply only to officers, directors and owners of 10% of company equity. SEC Rule 10 b-5 applies to all buyers and sellers of securities”

http://www.optionsforemployees.com/articles/attachment.php?id=296

[equalizer]

[quote=patientrenter]I don’t know if my company restricts me from betting against the company, whether it’s a hedge of my compensation or not. But I couldn’t seriously defend it in front of my company’s CEO, so I wouldn’t do it.[/quote]
My comments are for a public company only.

Short story is that it would imprudent at best to not hedge, especially a tech company. There could be 50% chance that ESO expire worthless, unless you are lucky enough to get daily repricing (I think the SEC doesn’t care for that anymore).

I’m sure that there are many employees who didn’t hedge 10 years ago and forwent financial security for their family. If execs believe that hedging is unethical, then how can they defend selling their stock to poor grannies right before stock tanks??

“Seldom do companies have a complete ban on using options to hedge the risks of holding ESOs. But there are cases of companies who believe hedging defeats the purpose of the ESO grant. Allegedly, these companies want to forge an alignment of interests. Those same companies allow and sometimes encourage the premature exercise of ESOs and sale of stock, which reduces the alignment of interests much more than hedging the ESOs. No reasonable person will argue that an employee who owns no ESOs or stock has a greater alignment of interests than an employee who owns substantially in the money ESOs and is short out of the money long term calls. But that is exactly what the design of some plans assumes, when restricting hedging.”

“Are there SEC Constraints on hedging?
SEC Section 16 b and Section 16 c of the 1934 Securities and Exchange Act apply only to officers, directors and owners of 10% of company equity. SEC Rule 10 b-5 applies to all buyers and sellers of securities”

http://www.optionsforemployees.com/articles/attachment.php?id=296

[equalizer]

[quote=patientrenter]I don’t know if my company restricts me from betting against the company, whether it’s a hedge of my compensation or not. But I couldn’t seriously defend it in front of my company’s CEO, so I wouldn’t do it.[/quote]
My comments are for a public company only.

Short story is that it would imprudent at best to not hedge, especially a tech company. There could be 50% chance that ESO expire worthless, unless you are lucky enough to get daily repricing (I think the SEC doesn’t care for that anymore).

I’m sure that there are many employees who didn’t hedge 10 years ago and forwent financial security for their family. If execs believe that hedging is unethical, then how can they defend selling their stock to poor grannies right before stock tanks??

“Seldom do companies have a complete ban on using options to hedge the risks of holding ESOs. But there are cases of companies who believe hedging defeats the purpose of the ESO grant. Allegedly, these companies want to forge an alignment of interests. Those same companies allow and sometimes encourage the premature exercise of ESOs and sale of stock, which reduces the alignment of interests much more than hedging the ESOs. No reasonable person will argue that an employee who owns no ESOs or stock has a greater alignment of interests than an employee who owns substantially in the money ESOs and is short out of the money long term calls. But that is exactly what the design of some plans assumes, when restricting hedging.”

“Are there SEC Constraints on hedging?
SEC Section 16 b and Section 16 c of the 1934 Securities and Exchange Act apply only to officers, directors and owners of 10% of company equity. SEC Rule 10 b-5 applies to all buyers and sellers of securities”

http://www.optionsforemployees.com/articles/attachment.php?id=296

[equalizer]

[quote=patientrenter]I don’t know if my company restricts me from betting against the company, whether it’s a hedge of my compensation or not. But I couldn’t seriously defend it in front of my company’s CEO, so I wouldn’t do it.[/quote]
My comments are for a public company only.

Short story is that it would imprudent at best to not hedge, especially a tech company. There could be 50% chance that ESO expire worthless, unless you are lucky enough to get daily repricing (I think the SEC doesn’t care for that anymore).

I’m sure that there are many employees who didn’t hedge 10 years ago and forwent financial security for their family. If execs believe that hedging is unethical, then how can they defend selling their stock to poor grannies right before stock tanks??

“Seldom do companies have a complete ban on using options to hedge the risks of holding ESOs. But there are cases of companies who believe hedging defeats the purpose of the ESO grant. Allegedly, these companies want to forge an alignment of interests. Those same companies allow and sometimes encourage the premature exercise of ESOs and sale of stock, which reduces the alignment of interests much more than hedging the ESOs. No reasonable person will argue that an employee who owns no ESOs or stock has a greater alignment of interests than an employee who owns substantially in the money ESOs and is short out of the money long term calls. But that is exactly what the design of some plans assumes, when restricting hedging.”

“Are there SEC Constraints on hedging?
SEC Section 16 b and Section 16 c of the 1934 Securities and Exchange Act apply only to officers, directors and owners of 10% of company equity. SEC Rule 10 b-5 applies to all buyers and sellers of securities”

http://www.optionsforemployees.com/articles/attachment.php?id=296

[equalizer]

[quote=Allan from Fallbrook]Brian: The problem here is you want to eat your cake and have it, too….
but we’re pushing these programs when we have no real means to fund them and are getting way too close to the edge of the cliff for my liking, which was my point about many of the Tea Partyers having a valid point.

We need to get back on track with education, and infrastructure and REAL renewable energy programs. We need to cut defense, entitlements and the bailouts.[/quote]
What do you expect from someone whose middle name is Sybil?

Allan: I’m glad I’m immune from the stigma that could result from imbimbing on dour prophecies. You too can have a sunny disposition if you join my new club – the Long-Island Iced-Tea Party. Don’t worry, be happy mon.

[equalizer]

[quote=Allan from Fallbrook]Brian: The problem here is you want to eat your cake and have it, too….
but we’re pushing these programs when we have no real means to fund them and are getting way too close to the edge of the cliff for my liking, which was my point about many of the Tea Partyers having a valid point.

We need to get back on track with education, and infrastructure and REAL renewable energy programs. We need to cut defense, entitlements and the bailouts.[/quote]
What do you expect from someone whose middle name is Sybil?

Allan: I’m glad I’m immune from the stigma that could result from imbimbing on dour prophecies. You too can have a sunny disposition if you join my new club – the Long-Island Iced-Tea Party. Don’t worry, be happy mon.

[equalizer]

[quote=Allan from Fallbrook]Brian: The problem here is you want to eat your cake and have it, too….
but we’re pushing these programs when we have no real means to fund them and are getting way too close to the edge of the cliff for my liking, which was my point about many of the Tea Partyers having a valid point.

We need to get back on track with education, and infrastructure and REAL renewable energy programs. We need to cut defense, entitlements and the bailouts.[/quote]
What do you expect from someone whose middle name is Sybil?

Allan: I’m glad I’m immune from the stigma that could result from imbimbing on dour prophecies. You too can have a sunny disposition if you join my new club – the Long-Island Iced-Tea Party. Don’t worry, be happy mon.

[equalizer]

[quote=Allan from Fallbrook]Brian: The problem here is you want to eat your cake and have it, too….
but we’re pushing these programs when we have no real means to fund them and are getting way too close to the edge of the cliff for my liking, which was my point about many of the Tea Partyers having a valid point.

We need to get back on track with education, and infrastructure and REAL renewable energy programs. We need to cut defense, entitlements and the bailouts.[/quote]
What do you expect from someone whose middle name is Sybil?

Allan: I’m glad I’m immune from the stigma that could result from imbimbing on dour prophecies. You too can have a sunny disposition if you join my new club – the Long-Island Iced-Tea Party. Don’t worry, be happy mon.

[Author]

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