.: Knowledge Base

The Tax "Straddle" Rule Sec. 1092 and the "Constructive Sale" Rule Sec. 1259 do not constrain hedging ESOs with listed calls
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(No rating) 4-14-2006 Views: 9828

If you hold Employee Stock Options and Employer Stock, you should write "Qualified Covered Calls" immediately.
Any holder of Employee Stock Options, who...
(No rating) 7-10-2006 Views: 9032

Archive of Newsletters
Archive of Newsletters from Truth In Options
(No rating) 3-23-2010 Views: 216

Book Review by Bruce Brumberg
An Amazon Book Review by Bruce
(No rating) 8-21-2010 Views: 11

Tax Advantages of "Qualified Covered Call" Writes
Holders of common stock of major companies...
(No rating) 6-25-2006 Views: 4847

Why companies want premature exercises of ESOs
This article will illustrate why...
(No rating) 5-30-2010 Views: 51

Tax Treatment on Calls Written to Hedge ESOs
1.There is no tax when the positions...
(No rating) 4-6-2006 Views: 8614

How to make your income from Employees stock options and restricted stock tax free.
It is possible to make your income from grants...
(No rating) 7-26-2010 Views: 33

You hold 20,000 Yahoo! ESOs and 10,000 shares of company stock. What should you do to reduce risk?
Lets suppose, in May 2003, you were granted...
(No rating) 5-2-2006 Views: 6509

Buying Google Put vertical spreads in your IRA to hedge stock held is your personal account.

(No rating) 1-7-2010 Views: 288

How much do ESO grants cost the company?
This article is about how much executive...
(No rating) 4-4-2010 Views: 118

Slidecast of hedging ESOs
These slidecasts are by John Olagues on...
(No rating) 12-13-2009 Views: 258

New Book on Employees Stock Options
New Book on ESOs by John Olagues and John...
(No rating) 1-15-2010 Views: 209

Closer look at IRS Rule 1092, IRAs and ESO tax treatment
This is a discussion of the IRS Rule 1092...
(No rating) 2-17-2008 Views: 1871

Youtube Videos on Hedging employee Stock Options
Check out these Youtube videos on Hedging...
(No rating) 12-31-2009 Views: 268

Are Executives Prohibited from Hedging their Stock Options
There are many articles that contend that...
(No rating) 8-19-2005 Views: 1989

Taxes on Hedging Stock and Options Slide Presentation
Here is a presentation (linked below) of...
(No rating) 1-17-2010 Views: 232

Employee Stock Options Hedging, SEC Rules and Taxes.
Preliminaries Some...
(No rating) 1-22-2005 Views: 5752

Investopedia Articles by John Olagues
Here are a few articles that I have written...
(No rating) 1-15-2010 Views: 214

Live Webcast on hedging ESOs recorded 12/17/2009
Dear Visitors:If you wish to view the webcast...
(No rating) 12-23-2009 Views: 233

Which Calls should I "write"
There are numbers of advisers who...
(No rating) 1-27-2005 Views: 8494

Buying Puts to Hedge Employee Stock Options or Long Stock has unique Tax Advantages
Assume that an employee was granted 1000 ESOs...
(No rating) 3-10-2008 Views: 2105

Using IRAs to Manage Your Employee Stock Options
Most advisers claim that you need extra cash...
(No rating) 5-24-2007 Views: 1403

Further Explanations of Taxes and Options
Assumptions:Assume that an investor sells 10...
(No rating) 10-2-2007 Views: 1141

How a Professional Market Maker would Manage his Employee stock options
Attached is a Comprehensive Article by John...
(No rating) 12-31-2007 Views: 1070

Hedge your ESOs and get Special Tax Benefits
The purpose of this article is to prove that...
(No rating) 9-7-2007 Views: 1399

How to Calculate the Value of Your Employee Stock Options
Employees are often faced with the task of...
(No rating) 1-19-2005 Views: 3718

Comparing Restricted Stock to Employee Stock Options
There has been much discussion claiming the...
(No rating) 6-19-2002 Views: 4713

Negotiating for Equity Compensation
This article advises employee/executives on...
(No rating) 8-9-2005 Views: 3484

Analysis of a Hedge against Google Employee Stock Options
Assumptions1. Assume that Google common stock...
(No rating) 2-7-2005 Views: 3224

My options' exercise price is 50 and my stock's at 85. What do I do?
Many of the 11 million American...
(No rating) 7-17-2005 Views: 4210

Chance of Employee Stock Options Being Worthless at Expiration
The matrix below illustrates the...
(No rating) 1-19-2005 Views: 2091

Premature Exercising ESOs Forfeits Part of Your Compensation Back to the Company
The predominant strategy that "Options...
(No rating) 1-19-2005 Views: 1582

Disguised Re-loading of Executive Stock Options
Until just recently, I was puzzeled as to why...
(No rating) 11-26-2006 Views: 4545

Buying Puts to Hedge ESOs can be used to Reduce Risks but Often Increases Risks
Some advisors claim that one easy way to...
(No rating) 12-23-2005 Views: 3925

Five Golden Rules for Managing Employee Stock Options
The Five Golden Rules are:1. Don't exercise...
(No rating) 2-17-2006 Views: 5852

Some advisors say Optionees are prohibited from hedging their Employee Stock Options.
Many Advisors to optionees claim that...
(No rating) 5-7-2007 Views: 2352

Does Hedging ESOs Defeat the Purpose of the Options Grant?
Whenever I speak with a person who has...
(No rating) 1-8-2006 Views: 4712

Graphical Illustrations of the Results of Premature Exercises of Employee Stock Options
These attached Bar Graphs illustrate how the...
(No rating) 4-22-2006 Views: 6616

Higher implied volatilities encourages Hedging ESOs instead of Premature Exercises and Sales
In the past several months since June 2007 we...
(No rating) 8-22-2007 Views: 1215

When to exercise and when to hedge your employee stock options.
The answer to that question is not easy. In...
(No rating) 1-1-2006 Views: 5207

The mechanics of Short Selling stock and Selling Listed Calls
In this article I will explain how short...
(No rating) 9-18-2007 Views: 1504

Why Advisors do not Recommend Hedging Employee Stock Options
To any informed trader of stock options, it...
(No rating) 10-4-2005 Views: 1483

Federal Courts Favor Back Daters in 16b cases
In 1934, the Congress passed a law trying to...
(No rating) 9-1-2007 Views: 823

Mr. Lucky goes to Yahoo
We will call him Mr. "Lucky"We are...
(No rating) 6-25-2006 Views: 1010

How Steve Jobs managed his Employee Stock Options.
Attached is a copy of a Form 4 required by...
(No rating) 8-17-2007 Views: 1202

An Early Exercise of ESOs is Worse than an Early Withdrawal from a Traditional IRA.
For Example Google Options : Assume that a...
(No rating) 5-5-2007 Views: 1402

How to Handle Your Apple Equity Compensation .
Assumptions:Let's suppose that you had been...
(No rating) 4-27-2007 Views: 1513

How Much does an Employee Throw Away by Making Early Exercises of ESOs
In many of my articles I advise employees to...
(No rating) 8-15-2007 Views: 1208

Sell calls to hedge your employee stock options and deposit the proceeds into an IRA
Assumptions:Suppose you own Employee Stock...
(No rating) 8-18-2007 Views: 1398

Did the SEC Encourage Back - Dating and Spring - Loading ?
Let's analyse the question.Section 16 b...
(No rating) 9-21-2006 Views: 4237

Google Transferables Revisited and Updated
Since my earlier article on the Google...
(No rating) 5-2-2007 Views: 1318

Google Transferable Employee Stock Options
On December 12, 2006, Google announced a plan...
(No rating) 12-15-2006 Views: 4090

Exactly How to Manage Your Employee Stock Options
The Objects of this article are..To create a...
(No rating) 1-23-2005 Views: 4051

Allowing and promoting hedging of ESOs increase their perceived value
The vast majority of employees holding stock...
(No rating) 5-6-2005 Views: 1999

How to recognize when executives are trading with inside Information
Let's assume that you hold sustantial employee...
(No rating) 10-2-2005 Views: 2372

White Paper on Managing Equity Compensation
See Attached White Paper
(No rating) 4-16-2006 Views: 4352

Letters to SEC and IRS seeking determinations
These attached letters seek determinations from...
(No rating) 3-10-2006 Views: 177

Do Fiduciaries have a duty to recommend hedging

(No rating) 8-23-2010 Views: 13

Expensing Employee Stock Options
Companies are required to expense the...
(No rating) 1-19-2005 Views: 4293

Exercising ESOs and Diversifying has its Costs.
"Diversify, Diversify, otherwise you'll...
(No rating) 7-25-2005 Views: 3719

Using Listed Options on Positively Correlated Stock to Hedge Employee Stock and ESOs
Sometimes employers decide to prohibit...
(No rating) 9-29-2005 Views: 1371

Profits from your Employee Stock Options can be Tax Free
Yes, you can turn otherwise ordinary income...
(No rating) 2-19-2007 Views: 1311

Premature Exercising ESOs Forfeits "Time Premium" Back to Employer - Short Version
When ESOs are granted, the entire value...
(No rating) 7-15-2005 Views: 3597

Back -Dating, Spring-Loading and other Executive Scams
At cocktail parties in Silicon Valley and on...
(No rating) 9-15-2006 Views: 4739

Strange Calculations in Google Options Expenses.
On page 91 of Google's 10-K Annual Report Dec....
(No rating) 5-20-2007 Views: 1631

Can you legally sell "naked" calls in an IRA plan?
There is absolutely no IRS or other legal...
(No rating) 6-25-2006 Views: 5122

Volatility: What does it mean and how do you calculate it?
Volatility is the annualized standard...
(No rating) 6-14-2006 Views: 2255

Delay the exercise of your employee stock options and make an extra 50%.
DELAY THE EXERCISE It’s estimated that 14...
(No rating) 1-19-2005 Views: 5193

John and his Optionettes
Please see attachment showing John with his two...
(No rating) 12-30-2006 Views: 1829

Comparing options grants to cash compensation
Myth:A myth has been promoted that executives...
(No rating) 8-22-2005 Views: 3286

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