Buying options in US market for hedging company RSU’s

Hello everybody,

It seems to be like a subject that has been crushed to demise however I’ve a really particular requirement. I work for US tech firm and as part of my compensation I obtain firm shares. Since these shares are listed in NASDAQ they’re traded within the US market.

NASDAQ has given run up which means my RSU’s have additionally gone up in worth. However not all RSU’s can be found on the market instantly and they’ll grow to be accessible for me to promote solely in December.

I’m trying to purchase some put choices in December expiry to hedge towards any huge worth fall to guard my RSU worth.

I’ve checked out this Buying and selling Derivatives in USA from India and will different threads in reddit. There’s a number of conflicting info concerning the legality of this. Is there anybody right here who has achieved this and reported in ITR?

Many individuals are saying since shopping for put/name doesn’t want leverage it isn’t thought of unlawful and a few brokerages do enable it. Purchase Nithin within the dialogue above is clearly saying brokerages would enable for a lot of issues because it will get them enterprise however its nonetheless unlawful. I did see a thread that stated LRS can’t be used for margin and so on.(All different transactions that are in any other case not permissible below FEMA and people within the nature of remittance for margins or margin calls to abroad exchanges/ abroad counterparty will not be allowed below the Scheme.) However RSU’s are already within the US and technically is just not cash earned in India. Does that imply we are able to use that for margin/buying and selling?

Any assist from specialists is appreciated.Thanks

I work for US tech firm and as part of my compensation I obtain firm shares.

I’m trying to purchase some put choices in December expiry to hedge towards any huge worth fall to guard my RSU worth.

Additionally, in case you haven’t but,you may additionally need to examine together with your US firm’s Insider buying and selling coverage.(or their authorized/finance staff)

Normally, the corporate insurance policies prohibit staff fromgetting concerned in derivatives of the corporate inventory.

Shopping for places on an organization you’re employed for is just not a smart thought, even for hedging.

You possibly can hedge towards an index or the market as an entire with out drawing suspicion I assume.

It is a good level. Let me examine the foundations.

Hello all,After a number of analysis I can solely see one choice – purchase inverse ETF’s within the index your employer has a big contribution. Would my analyis be appropriate? Any specialists please remark.

Thanks