JustaNumber
Well-known member
- Joined
- Nov 10, 2005
- Posts
- 922
Does anyone who uses their ESPP employ any creative investing strategies to take advantage of the unique aspect of the program?
I recently have heard about a technique of shorting the stock in a margin account, if at any point it goes above the initial stock price, to lock in the additional gains in a practically fail-safe manner. It also might be a good idea, if the stock has never risen above it's opening price (hello SKYW), to short it, or use call options, just prior to the closing date, to avoid wild price swings before you get a chance to sell it.
If anyone has used any of these methods, I would like to hear how well they work, and of any associated pitfalls. Thanks.
I recently have heard about a technique of shorting the stock in a margin account, if at any point it goes above the initial stock price, to lock in the additional gains in a practically fail-safe manner. It also might be a good idea, if the stock has never risen above it's opening price (hello SKYW), to short it, or use call options, just prior to the closing date, to avoid wild price swings before you get a chance to sell it.
If anyone has used any of these methods, I would like to hear how well they work, and of any associated pitfalls. Thanks.
