
Ask HN: What Is the Best Way to Hedge RSUs During Post-IPO Lockup? - shedletsky
A unicorn I worked at for two years is going IPO soon. The RSUs are double trigger vest.<p>I want to hedge the risk that the stock gets cut in half in-between the IPO and the lockup expiration.<p>Here are the two strategies I have found so far:<p>1. If you have X shares&#x2F;RSUs, short X additional shares at open of IPO. Cover after lockup expires.<p>Pro: lock in a sale at the IPO price
Con: requires significant margin reserves &amp; cost-to-borrow might be high<p>2. Sell costless collar on X shares using options contracts.<p>Pro: doesn&#x27;t require huge margin reserves
Con: options market is not guaranteed to exist any time during the lockup<p>Can I do any better than this?
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marketgod
Have you looked into secondary markets?

1) If you short X shares and it goes up you don't get the upside ride and it
can fly early on.

