Both my wife and I work for FAANG companies. As the stock has recently gone through the roof I was wondering if we should try to protect the gains (covered call/put options). Understand we will be giving up upside but we might need to liquidate in about a year or so for a down payment. Any one ever done that? How would you think about the strategy here?

like
Posting as :
works at
You are currently posting as works at

If you need the money in a year then it absolutely makes sense to hedge. You may win or lose on the deal but locking in what you need is better than gambling with it, which is what you’re doing if you don’t hedge against potential losses.

likesmart

CEO1, I agree that they would need the liquidity or to cover the loss on the short position, so it depends on how many shares OP is trying to hedge and how the position compares to their overall net worth and liquidity. The issue with buying puts or shorting a tech ETF is that these are "dirty" hedges and so it does not fully lock in the position. Even with a put the put position and underlying wont move exactly together, and have to buy long dated otherwise have to keep closing it out and buy new puts. But probably close enough for OPs purposes

If the options have bested consider a trailing stop. Set a percentage from the current price that meets your needs, and as the price continues to appreciates it continues to ratchet up the stop. If the price goes down to the stop it hits and you cash out.

If your options haven't vested then buy put options at the minimum sttike price you'd be happy to sell at for the dates your options vest. The lower the strike price the cheaper the put option. Note, if you put a strike price that's equal to the price today it'll be super expensive.

likesmart

👀

like

You are almost certainly not allowed to hedge your company stock.

But you can hedge an ETF that is closely correlated.

like

Also make sure you look at the trading policy. My FANG prevents you from trading options, selling short and only within a certain window a month after earnings.

Im there, I’m betting on high and selling then

An alternative to OTM puts are levered bear ETFs or gold ETFs. IV is still high so options are expensive anyway. This way you you're not exposed to theta or get crushed by IV

Related Posts

Got targeted for Amex platinum 100k. Is it worth it? Is there a higher targeted offer?
Considering doing it since no more personal card for BCG expenses. Also have CSR fwiw.

like

Any recommendations on where to invest 10k? I have about 15k in stocks but I don’t think I’ve done a great job picking stocks. Also for people making 150k+ how do you budget your money monthly?

like

Anyone worked at multiple FAANG companies? I’m trying to choose between 2 and can’t decide.

like

Thoughts on investing in FTT FTX? It’s available on Kucoin

likefunny

Anyone been able to work from Dubai for a UK/US firm and benefit from no taxes? I know if you are a US citizen you pay taxes where you are globally, but if you are British, then you only pay income tax on UK income - so if you live more than half the year abroad you are classed as non-domicile resident, but wanted to hear if anyone’s done this or heard about it?

like

What is a reasonable monthly budget for single folks living in Manhattan? I eat out rarely - maybe 2x / week and have the usual high 1BR rent + Wi-Fi + electricity and am netting monthly expenses at around 4K. Any other ideas on managing your money better?

like

Looking for a financial advisor to help us begin investing - any recommendations? Is $30K enough to start with?

like

None of us non citizens will see this stimulus check right even though we are residents for tax purposes?

like

anyone see the irony in the fact that one of the only coins to hold steady in dollar value during this entire mess is TRX, which was berated by all prior to the crash? :p too bad I don’t own any 😭

Folks making more than £100K: How do you deal with the 60% effective tax rate on the 100-125K bracket? (HMRC gradually reduces your £12,750 personal tax-free allowance to £0.)

This is the first time it is happening to me. With one month to go until the end of the tax year, I'm thinking of making a one-off extra pension contribution next payroll.

Any other effective strategies with only one month to go?

like

Quick question: Can we ask HR to revise pf contribution to minimum which is 1800/month

likehelpful

Looking to buy an investment property in Nashville. Can anyone here connect me to good realtors I can work with in the area? Trying to close in < 6 months.

Have 20k, what’s a good small business to start with this fund? Serious question here

like

Junior Associates - How much student loan debt are you and your peers in these days? A few young partners and counsel at my firm were discussing the student loan moratorium and most of us were convinced we could have paid the majority of our loans off with the bonuses associates got these last two years. But we are all old and when we graduated 150k to 200k was about the max student loan debt people graduated with. So educate me. What is the average student loan debt these days?

like

Does Deloitte still offer second year tuition reimbursement for a returning intern who’s attending their MBA program on a full tuition scholarship? Thanks!

like

How do I make millions?

like

Hi Fishes, I have one question for you.

What are avg 2 sharing PG rents in Bengaluru?

like

How is 99k salary in New Jersey area ? I have to settle with family (wife and kid 4yo). How much i will get post tax deduction ? Can any1 help with approx expenses (avg middle class living) per month

like

I told myself I wasn’t going to do it. Re-assured myself I wasn’t going to do it. Told myself you’d know what would happen and still ended up gambling away a bunch of money I know I couldn’t blow. I don’t understand.

like

More Posts

How long do you think this M&A slowdown will last?

like

So I’m an idiot auditor. I am about to promote to senior -I’ve gotten 3s on every review. I have an opportunity to move from audit to deal advisory within B4. Am I equipped to handle the new role??

likefunny

Any way to get in one of these IPOs prior to them opening up to the wider market?

like

Hi all. I have applied for Oracle PL/SQL job opening at BOFA. How many rounds of interview will happen and what are they? And my YOE : 6.6 my current CTC is 14.68LPA. How much should be my expected CTC?

like

My project at a FAANG company completes the end of this month. For my next move, I’m looking for product and content managerial or directorial positions starting January dealing with content or marketing in tech, blockchain/cryptocurrency, or financial services/insurance. It would be great to meet people who are interviewing now to start in January. DM if you are, or have advice.

like

Going for my Amazon loop for Sr. PM soon. I’ve been going through my stories for the different corporate values and using STAR. Any other interview prep advice? Amazon

like

Hi Everyone, I am trying to apply for a Technical Support role at Dropbox I’m entering all the required fields but there seems to be an issue, when I hit submit after filling the form, it doesn’t submit and throws error ‘Looks like you left this blank! Please fill out this required field’ when all the fields are entered already (I have checked so many times, and filled the form from scratch several times too). Anyone from Dropbox who can put me in touch with HR or suggest what I should do next?

EY folk - when are bonus amounts announced? Thanks!

like

Assistant Vice President (AVP) for Morgan Stanley equivalent to PwC rank?

like

I am new to this so probably a dumb question but can you turn down a project, particularly when it is not for your alignment. It is not something I am interested in.

like

Men of FB, how did you girlfriends / wives sex drive change with age?

like

I’m a first year that’s inching toward second year. Partners in my group say “sometimes getting thrown into the deep end is the best way to learn.” However, I feel so lost. I feel like saying the above is just an excuse for not wanting to take the time to actually teach new associates.

like

What’s the hours like in CMAAS NYC office recently?

like

Hello All,
Is Atos better than Concentrix Catalyst ?

I am supposed to join Atos in July.

Looking for advice or thoughts. I've been married for about 4-1/2 years, a consistent issue in our marriage is that I either work too much or I'm not available enough. I work in a sales office, 8-5 M-F. Various issues arising at home have required my attention 30+ times in the last 12 months. I have worked from home most of those occasions. We have a real emergency now but my GM says I am pushing the limits. I actually agree with him, but it's causing problems at home. Thoughts?

like

View from the wing. I’m going to start taking photos and make a scrapbook for when these days are behind me. Just FYI, I guess.

like

Much more Composure from the Caps tonight. Lots of momentum heading back east.

like

Hi there! What’s the best way for a Dreamer to get their citizenship? I’ve renewed my AB 540 multiple times and would like to get the ball rolling on my citizenship. The Biden Admin talked about providing a pathway to citizenship for Dreamers but because of the pandemic, they decided it wasn’t an important enough issue to discuss.

Hi fishes,
I finished my B.E (CSE) this year. Working in TCS since 6 months on a CRM Project. CTC : 7LPA (I also had offer at Accenture for 6.5LPA)

- I know basics of many languages/ technologies : C, C++, Java, Python, HTML, CSS, Javascript, React, Azure

- Basic level Problem Solving, DSA, OOP

I am a quick learner. I am currently learning DSA using C++ & Azure.

Can anyone in Hyderabad hire me for a better package at a company where I can work in development or Cloud Role?

Thanks

like

Best law firms in NYC for privacy law, especially if you’re a judicial law clerk with no experience but studying for the CIPP/US?

like

Additional Posts in Compensation in Consulting

Amazon recruiter reached out and wants to know my general compensation expectations before first interview. Very little info available on role but seeing $150k-$250k total compensation reported. Is this too wide of a range to give them?

like

Tax question: married filing jointly for 1st time next year. Company recommends/requires me to fill out its tax calculator. Is this required? Can I just leave it at 0? What are implications if I skip this exercise? Overpay? Underpay? Enough to maybe have a penalty? Me and wife are ~$250k/$150K=$400k total.

like

SM promoted from M salary range? EY

like

In your eyes, what minimum % increase in salary would warrant a job change?

like

Does NYC or SF pay more all else being the same?

like

Those of you in industry post consulting, when you get a new internal job are signing bonuses a thing, or have you seen any version of this?

like

What does a PEPI senior associate or manager make at Alvarez & Marsal? Interested in base and total comp.

like

I’m in my 3rd year out of college. My salary is 85k with a bonus of 30k (35%), which brings my total comp just slightly below market. How can I ask for more base and less bonus?

likefunny

Moving to industry and trying to decide start date. Would I still be eligible for the performance bonus if I put in my two weeks notice a week before receiving the bonus?

like

How can I make $140K and above w/ 5 YOE in operations, program management, client delivery? Worked in NGO for 3 years then consulting for 2 years.

like

healthcare promotion from EM to SM in your firm? trying to calibrate expectations....

like

What are the levels at Slalom? How do they correlate with EY levels. Pay Range for Senior and Manager?

like

Im SC3 at EY Advisory, MBA non IT. Got an offer from D for SC3 at S&O for 135K no sign in bonus in top tier city. The recruiter says experienced hires don't get sign in bonus. BS. accept the offer?

like

Deloitte Boomerang coming back - can I negotiate a signing bonus? It’ll cost my $25k to quit my current job before March, but D and I want to rekindle our love:hate relationship now, not in March. If yes, what should I ask for at the manager level?

likefunny

Has anyone successfully been able to get a salary increase at their current firm because they had an offer from a competitor? Any tips? I’m in a very hot area of cyber if that helps.

like

ConsultingHumor’s Instagram page (364k followers) did a massive compensation survey for top consulting firms in the US and internationally. Several thousand respondents with base and bonus salary for all the top (and some smaller) firms. Can be used when negotiating your next raise or to see if you want to jump ship to another firm. You can download the full spreadsheet of data at consultinghumor (dot) org

Post Photo
likehelpful

What does an Enablement Lead Analyst make at BCG?

like

Hello Fishes - Have received offer from Citibank for C14 ( SVP Data Science) role. Offered comp - 220K base. No signing bonus. Bonus range -20%. Location - NY. Is this good offer? What is range generally? Citi fishes please help !!Citi

like

McKinsey consultants- I remember hearing that you have a different comp model from most firms (where title and pay aren't necessarily linked). Does anyone mind elaborating?

like

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the
Fishbowl app

See what’s happening in your industry
from the palm of your hand.

A phone with Fishbowl app

Scan your QR code to download
Fishbowl app on your mobile

Download app

Sign up for free to view this conversation on Fishbowl

By continuing you agree to Terms of Use and Privacy Policy

Already have an account? Log in

Sign up for free to continue using Fishbowl

By continuing you agree to Terms of Use(New) and Privacy Policy(New)
Messaging rates may apply

Already have an account? Log in

For account settings, visit Fishbowl on Desktop Browser or

General

Legal