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#1
11-23-2007, 05:22 PM
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Re: Company Stock Purchase Plan
[ QUOTE ]
Short it in a brokerage account, 15% arbitrage. [/ QUOTE ] 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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#2
11-23-2007, 05:29 PM
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Re: Company Stock Purchase Plan
[ QUOTE ]
[ QUOTE ] Short it in a brokerage account, 15% arbitrage. [/ QUOTE ] 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. [/ QUOTE ] 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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#3
11-24-2007, 12:14 AM
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Re: Company Stock Purchase Plan
[ QUOTE ]
[ QUOTE ] [ QUOTE ] Short it in a brokerage account, 15% arbitrage. [/ QUOTE ] 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. [/ QUOTE ] 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 [/ QUOTE ] That's something he should certainly check. I made my comment sort of off the cuff. I've heard of companies that prohibit this sort of shorting in the company stock. Every time I've been in an ESPP there have been no restrictions.
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#4
11-24-2007, 02:55 PM
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Re: Company Stock Purchase Plan
So it looks like consensus is to short the company stock if possible, and if it is not (I am not sure at this point), to plow as much money as possible into it. Makes sense to me. Thanks for the advice, guys.
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#5
11-24-2007, 09:39 PM
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Re: Company Stock Purchase Plan
Yikes, that was not a consensus, just my one big mouth. Talk to other people at the company that have been there for awhile and get their opinions. Do NOT tell them you are thinking of shorting the stock.
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#6
11-24-2007, 12:11 AM
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Re: Company Stock Purchase Plan
[ QUOTE ]
[ QUOTE ] Short it in a brokerage account, 15% arbitrage. [/ QUOTE ] 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. [/ QUOTE ] zecco.com [ QUOTE ] 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. [/ QUOTE ] Read the OP. He has to keep it for a year.
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