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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Skeeter Bug who wrote (67089)	9/1/1999 11:47:00 AM
From: Don Lloyd	Read Replies (1) \| Respond to of 132070

SB - (...he is low, low, low on the totem pole. the folks that disclose don't even know his name...) Even in the unlikely absence of a specific company policy against the short sale of company stock, if such a sale comes to light, then the future employment duration is highly unlikely to be long enough to allow the options to vest. -g- Regards, Don

To: Skeeter Bug who wrote (67089)	9/1/1999 1:38:00 PM
From: Michael Bakunin	Respond to of 132070

I think Don has the key point: you can't hedge an unvested position, because it doesn't yet exist. If your pal really wants, he may want to buy a protective put position, but that'd be expensive, impossible for small fry if none trade publicly. If he has both a vested and an unvested position, I'd probably tell him to put a no-cost collar on the vested portion (short at-the-money calls, long just-out-of-the-money puts). It's become quite the fad in silly valley. -mb PS - see this discussion at the CBOE site; the principle is the same cboe.com