If you have RSUs that vest each quarter (let’s say 100 shares) that you plan on cashing out the day of vest, would it make sense to write a covered call just barely out / in the money (i.e 1 dollar from market) to collect the premium on top of selling the stock you already planned on getting rid of? What do others do?

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It would make sense. Just depends on whether it will actually count as a covered call with your broker (i.e. where are the shares being held and is the system smart enough to know when the vesting is). If it doesn't and you're approved for uncovered options strategies, you could write a "naked call" for the week after.

You could also just sit on the shares and write calls further out of the money to generate less but more frequent income, depending on your outlook for the stock. If your cost basis is much lower than the trading price, you could do that for quite a while and adjust the strike price down when it drops and back up when it rises. These would be weekly calls, if it was a different minimum duration between contract expirations, might not be worth your time. Might also not be worth it if the option prices were too low for your liking. Either way, you've probably got some level of free money printer, just depends on what risk and income you're willing to take.

I've got a 100 shares of a stock with a decent gap between cost and price and I'm happy to make $500 dollars on it, $10 per week.

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lol yes I have thought of this and I have also thought of shorting stock when it had peaked during a bubble (thinking I am just selling them early and locking in the price)

However companies have policies against all these actions. They do not allow any options trading - calls or puts or covered calls for that matter.

They also prohibit shorting the stock.

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I don’t think we’re able to trade options on Apple, right?
I just sell mine the day they vest. It might fluctuate a dollar or two, but on 100 shares or less that’s $100-200.

Are you allowed to trade options on the company you work for?

I know mine expressly disallows it in our global policies so would check and make sure.

If it were me, I’d check policy and ask if there was any uncertainty. Better to be sure than risk your job status or other issues over what likely is an insignificant amount in the long run for you.

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SM1 RSU and options are not the same thing

I know - OP was asking about writing options on their RSUs and I was responding to that specifically. Option trading on our own stock is restricted, in general , at my firm.

TF

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