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interesting, wow, in that case I would immediately sell (depending on the tax scenario) and buy a competitor's stock or something in the same sector to write ca
by elastic_church 10y ago
interesting, wow, in that case I would immediately sell (depending on the tax scenario) and buy a competitor's stock or something in the same sector to write calls on
proxy trade
- ChuckMcM 10y agoYup. From a hedge standpoint that makes the most sense. But lets say you're a Facebook employee, what is your hedge? Google? Apple?
- elastic_church 10y agoor just buy the broad sector ETF and write options on that, but the volatility premiums are substantially larger on tech companies (because people going long are greedy) especially decent since this entire scenario doesn't really account for possible appreciation in price of the shares, and just capital preservation with decent annual gains and lower tax