Welcome to Twenty-First Securities’ Interactive Guide to Hedging Low-Basis Stock.  When a stock achieves its investment expectations, investors sometimes believe that their only options are to sell it and pay a capital gains tax or continue to hold it and watch it rise or fall. In fact, there are other choices available to take a few chips off the table without triggering tax or giving up ownership. The decision tree summarizes the various forms of low-basis stock holdings and the hedges that are appropriate in each situation. The articles discuss these issues in greater detail.








Relevant Articles:



Hedging Low-Basis Stock




Hedging Basics




The 21st Solutions to Hedging Low-Basis Stock




Swaps for Pre-1984 Stock




One-Instrument Collars for Post-1983 Stock




Protection for Restricted Holdings




FSA Takes Hard Line On Capitalization




Hedging Nonqualified Stock Options




Protecting “Synthetic” Equity Positions




Protecting Passive Investments in Collective Vehicles




Going Forward (Variable Forward TAM)




The Hedging Product of Choice




Considered Responses: Hedging ISO Stock




No-Action Letter Says Insiders Can Collar Options






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MyStockOptions Series:







Strategies For Hedging Concentrated Stock Positions (Part 1)




Strategies For Hedging Concentrated Stock Positions (Part 2)




Strategies For Hedging Concentrated Stock Positions (Part 3)




Hedging Your Employee Stock Options (Part 1)




Hedging Your Employee Stock Options (Part 2)




Hedging Your Employee Stock Options (Part 3)




Hedging Your ISO Stock






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Articles are provided for information purposes only.  They are not intended to be offers to engage in any securities transactions or to provide specific financial, legal or tax advice. Articles may have been rendered partly inaccurate by events that have occurred since publication.  Investors should consult their advisers before acting on any topics discussed herein.

Options involve risk and are not suitable for all investors.  Before engaging in an options transaction, investors must review the booklet "Characteristics and Risks of Standardized Options".


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