If your call becomes ITM, if it is dividend paying, you might get assigned early but if not, not likely. Your put is long, so you control when you want to "put" it to the other party.
Simple Long Put strategy for protecting my NFLX stock options
- Thread starter simpleThought
- Start date
I wasn't suggesting anything. Just NFLX looks a lot better a week after earnings that everyone expected to be the transition from subscriber growth to revenue centric valuations. The BIDU announcement was a bit of a game changer.
Agreed!!
Your options are vested and unexercised ?
0 strike or stock price on date of the grant ?
Check terms of the grant carefully and look out for two issues - is hedging the unexercised options allowed and does the grant go away within some time period of your departure. Don't assume anything you may have been able to do as an employee you can still do after your departure.
If they are zero strike and you have the $$ I would start to exercise and then look at hedging the "clean" stock.
Were you allowed to trade NFLX at all when you were an employee? You should also make certain Etrade does have your account restricted in NFLX as they might for an employee.
If you think you are going to be a different tax bracket in the future that could also weigh into the decision.
0 strike or stock price on date of the grant ?
Check terms of the grant carefully and look out for two issues - is hedging the unexercised options allowed and does the grant go away within some time period of your departure. Don't assume anything you may have been able to do as an employee you can still do after your departure.
If they are zero strike and you have the $$ I would start to exercise and then look at hedging the "clean" stock.
Were you allowed to trade NFLX at all when you were an employee? You should also make certain Etrade does have your account restricted in NFLX as they might for an employee.
If you think you are going to be a different tax bracket in the future that could also weigh into the decision.