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by dvsfish 106 days ago
Would this not be considered insider trading? Serious question
2 comments

it is if you have specific event driven knowledge that the put options would gain from

but if you just buy deep out of the money put options every year, say 50% price drop, in a 10b5-1 structure, its ok. you will get sued a bit more than usual

not much different than buying life insurance, except if your company crashes like monday.com , some schmuck who sold you the puts will have to pay you a tonne of cash then you can do a dilutionary rights issue or just use the cash buy a boat in miami and start something else

Insider trading is misappropriating knowledge. Not really misappropriation here.

Maybe you're looking for 'moral hazard'?