Little help with hedging risk from BestBuy
 

My friend works at BB and can purchase stock at a 15% discount. he has no clue about investing at all, so i try to give him the rundown about how everything works.

in the end basically 20% of his salary is going to BB stock at the discount, so I'm thinking since this is such a large allocation % wise we should just choose something exactly opposite to help him lower his risk..

which leads me to ask...what should he put his money in? take into consideration that he isn't a high net worth individual who has a ton of options in front of him.

thanks in advance

Re: Little help with hedging risk from BestBuy
 

how long is the stock locked up for?

(ie, no way they let him buy it at 15% discount and then turn around n sell it in open market)

Re: Little help with hedging risk from BestBuy
 

Best Buy is still around? I thought everybody and their half sister already owned a 47" flat panel TV, computer, digital camera, phone, etc etc etc, what on earth could they be selling still?

Re: Little help with hedging risk from BestBuy
 

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Best Buy is still around? I thought everybody and their half sister already owned a 47" flat panel TV, computer, digital camera, phone, etc etc etc, what on earth could they be selling still?

[/ QUOTE ]
Cords for all of these things at a 1000% markup

Re: Little help with hedging risk from BestBuy
 

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in the end basically 20% of his salary is going to BB stock at the discount,

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how much is his annual salary?
is he like management level or associate?

Re: Little help with hedging risk from BestBuy
 

sell deep calls

Re: Little help with hedging risk from BestBuy
 

[ QUOTE ]
sell deep calls

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are deep calls naked?

refresh my memory

Re: Little help with hedging risk from BestBuy
 

locked up for 6 months.

hes entry level but i guess not at a retail bestbuy so lets say pretax 10k is what were looking at for his contribution a year. (or do these things work posttax? no clue)