Hedging Nonqualified Stock Options

摘要

The volatility in equity markets over the past several years has increased the desire of many individuals to hedge their exposure to concentrated positions in a single stock. One area in which individuals often wish to hedge their exposure to a particular stock is in the context of non-qualified stock options(NQOs). This article addresses the key issues related to hedging non-qualified stock options, discusses the various strategies that are commonly employed, and identifies two potential strategies that could provide the best results for most individuals.