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I'm not sure you can buy derivatives on your company's stock. It's kind of the point that you can't diversify.
Yes that's common from why I've heard. Also, usually there's a beating period tied to the shares that put a minimum amount of time from when you buy into them and when you're allowed to sell them
Yeah, but only 30 days here. Tempted to buy, hedge with puts and sell 30 days later. Downside is short term capital gains tax, upside is guaranteed upside. If I hold for over a year then I'm increasing my exposure to my employer, which doesn't make sense diversification-wise
Your*
Buy and hold, but don't let it be the majority of your holdings
Vesting**
Yea I mean it's all a matter of personal preference. It's dependent on whether or not you want to "participate in the upside of share appreciation over the long run" or make some quick cash
Make sure you double check the fine print. With us I don't think you can liquidate for either 90 days or a year (can't remember) but once you do you're ineligible to participate in the program ever again
+1 @IBA1, also unless you're moving some serious volume, hedging you're entire investment with puts will really put a dent in your ROI
Plus if you do your job well your banks stock will rise....revolutions....
Thanks guys, good stuff to think about. Guess buy/hold will work.