buying options for the stock of my employer's will it cause trouble?

Discussion in 'Options' started by ggelitetrader000, May 4, 2020.

  1. This isn't a tax issue, it's a securities issue so you'll need a securities based lawyer (there isn't a shortage of one). If your broker paperwork states your current employer it's probable that you're already being monitored from trading their securities. Insider trading charges could easily be brought upon you if you are an officer, management or key person. It may still be likely if you are not one of these but are in the accounting dpt. If not, you could still get charged if there aren't department barriers between whatever you do and management/accounting.
     
    #11     May 5, 2020
  2. where do i find one? avvo?
    OKay, I rarely dealt with collar one time it did not work very well and lost a lot. It looks like short call, long put combo right? If stock drops PUT will protect and stock rices, gain is slot (stock itself of course will gain). This article has nice graph. It appears currently I did not get OTM put but ATM put, perhaps I can just sell OTM call to make it complete.

    Not sure how ATM long put and OTM short call will work.

    https://corporatefinanceinstitute.com/resources/knowledge/trading-investing/collar-option-strategy/
     
    #12     May 5, 2020
  3. I looked around my emplotyer's intranet but unable to find one. Broader definition on the open internet says usually it is reserved for high profile exec-s positions although definition of encompassment could vary from company A to B. I am in engineering dept and not even manager. we had chat within our engineers and they most agree high profile insider trading indictment usually occurs in finance department not engineering dept as one in the finance have more critital information. It does make sense.
    Broader def says usually it is period during which company prepares the quarterly statements. I am damned if I have access to that information.
    But i will check with HR anyways.
     
    #13     May 5, 2020
  4. I think it depends on the RSU & ESPP and how real /secure they are. The ultimate goal is to safeguard existing and future cash streams, your sallary and stock.

    I worked at a bank during the cc which is active in HK. We survived but our competitor, The Royal Bank of Scotland went under. I knew the old guard at the RBS when the bank actually managed risk properly. They built a bank on the foundations of prudential lending and took lucrative stock positions as part of their pension pay out. The children that took over couldn't spell risk...the only word they knew was sell. My point is that the old guard got slaughtered. They held extremely concentrated positions in the bank they spent their careers building up, that they thought would never fail.

    As some people have alluded to, even when actions are not against the law, they can irreversibly hurt your reputation and buying puts might come back to bite you due to future unknowns like office gossip, IPO disclosures / DD or job promotions etc. The ultimate goal is to safeguard the future cash flow...I would be wary of being too concentrated in one firm, where you also work.
     
    #14     May 5, 2020