Hi. I currently work at a publicly traded company which works in AI. This stock has done well and is volatile. I would like some level of consistency in income going into 2026 given some prevailing bearish singles (the ai bubble popping).
I have around 320k in unvested stock which vests over a period of 4 years. The stock is granted to me monthly and the grants are treated as regular income on my W2 and taxed accordingly.
I am interested in using options or other kinds of derivatives to hedge against the volatility of my monthly income. So far I have the vague idea of using some kind of ladder of monthly puts as insurance on any large price drops.
I'd like to know if anyone has experience with this sort of thing or to source ideas on it. I've looked at strategies like the following but am interested in other approaches as well. Perhaps other timelines rather than monthly. Maybe LEAPS? Although a temporary price drop can recover which can cause the LEAP to not increase in value due to the long time to expiration. Open to ideas. https://www.fidelity.com/learning-center/investment-products/options/options-strategy-guide/1×2-ratio-volatility-spread-puts.
EDIT: I'm not able to purchase options against my company stock directly so I'm looking into things like puts on QQQ, TQQQ, or VGT.
Hedging monthly RSU vests from day job.
byu/hairhelp69 ininvesting
Posted by hairhelp69
2 Comments
SQQQ is the leveraged inverse QQQ ETF. TQQQ is the leveraged ETF in the same direction as QQQ. If your stock moves with the NASDAQ 100, you hedge is to buy SQQQ or buy put options on TQQQ.
check the rules with your equity officer and sometimes they are also doing something and check any internal chat group you know.
iirc you cant touch anything that has holding consist of 10%+ of the current company, ie not even those 2x 3x derivates.
now, i am going to suggest something strange that it sound bad. US treasuries tlh/tlt/govz/sptl ETF if you believe the entire market will crash with your company share during that split moment and if you manage the ratio right it will reduce the pain
if not there is almost nth much you can do 🤷🏻♂️
btw you are most likely losing $$ for this peace of mind as its basically buying insurance.