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Selling a put is a long position. If you meant buying a put, I'd assume that's against policy too. Or else that's a really simple loophole. I totally agree w
by 727374 14y ago
Selling a put is a long position. If you meant buying a put, I'd assume that's against policy too. Or else that's a really simple loophole.
I totally agree with point #1 though. People should be able to diversify their risk.
- trhtrsh 14y agoYeah, any sort of trading instructions, even a binding instruction like "Sell my shares a year from today, when I won't be under lock up", is considered suspect for insider trading. A 10b-5 plan or similar is the only legally safe way to act during a quiet period. But trading during a post-IPO employee lockup, when there is no insider information concern, maybe isn't as tight as "the week before earnings release". Seems like it shouldn't be legally. But employers certainly would order their employees not to trade. There was a nasty loophole/scandal a few years back where people would set up a legal auto-sale plan like "Sell 1000 shares every week", and selectively cancel the plan on weeks they didn't want to transact. I'm not sure what became of that.
- bdonlan 14y agoActually, writing (selling) a put is the short position. Buying is the long position; you profit if the value of the put goes up (which happens when the value of the underlying stock goes down or is expected to go down).