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Old 11-23-2007, 05:29 PM
Taylor Caby Taylor Caby is offline
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Join Date: Mar 2006
Location: Chicago, IL, blogging
Posts: 725
Default Re: Company Stock Purchase Plan

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Short it in a brokerage account, 15% arbitrage.

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Either this or buying put options would be ideal but the commissions would probably be overly expensive for the small amounts of stock in question here.

You should buy as much as you can and sell as soon as possible. You're exposing yourself to a bit of risk but it's definitely going to be +EV unless the management are crooks.

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would transactions costs really eat away so much of the profit that it wouldn't be worthwhile to lock in this profit?

also, i assume it's completely within the rules to setup this short in this situation?

tc
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