4 ms·

Should've bought options to hedge.

• rongenre 8y ago
  It's against any competently worded lockup agreement. "“Derivatives” is sort of a vague term, and there is a persistent folk belief that they have magic powers, that any legal or financial problem can somehow be solved by doing a derivative." https://www.bloomberg.com/opinion/articles/2019-04-08/lyft-is-angry-about-lockups https://www.bloomberg.com/opinion/articles/2019-04-08/lyft-i...
  • usaar333 8y ago
    Lyft's common stockholder market standoff agreement doesn't bar hedging. See the s1.
    • vecter 7y ago
      But employees are forbidden to hedge. Source: am one.
• Falcorian 8y ago
  They are almost certainly not allowed by their employment contract.
• tyrust 8y ago
  Contractual limitations mentioned by a couple other people aside, options aren't even available until 5 days after IPO. http://www.theoptionsguide.com/criterias-to-list-stock-options.aspx http://www.theoptionsguide.com/criterias-to-list-stock-optio...
• acchow 8y ago
  You cannot trade options during your lockup.
• usaar333 8y ago
  It's a tough call to make. By the time options came out, puts were extremely expensive relative to calls due to shorting pressure driving up hard to borrow fees. Aside from how bearish you had to be to justify buying them, you also need a lot of capital you might not have. Besides, any current employee is barred from trading options by the insider trading policy.