Ask HN: Protective Puts for Equity Compensation?
How risky is it to buy protective puts on your equity compensation (for publicly traded companies)?
I've heard companies sometimes have a clause in employment agreements against options trading in company stock. I also understand there's some risk of getting hit for insider trading. I just can't imagine either of these issues coming into play if you're quiet, keep your head down, and avoid insider information.
Seems like a smart deal: Pay a few percent of your equity compensation to lock in your compensation package for your 1st year or until next quarter.
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