4 ms·

In Japan it's actually illegal. Your broker won't even let you do it.

• Retric 14y ago
  That seems extreme. If I have the option to buy shares in 6 months at price X and the stock is worth X + 10 then buying the option to sell at X + 5 in six months is simply managing risk. It's a good hedge regardless of what I think is going to happen to the company.
  • nandemo 14y ago
    That might make sense, but perhaps the securities agency considers that preventing insider trading and market manipulation outweighs letting employees hedge their companies' stock. Besides, in Japanese companies non-execs typically don't get stock options anyway.