Strategies to get the most from share and option positions
What Macquarie Executive Solutions offers
Executive option sale
Your clients can sell their company options to Macquarie to receive their current value
Exercise and sale
Macquarie can fund the exercise of company options and sell the securities for your clients
Tailored Equity Collar
Macquarie can tailor risk management solutions for your client’s resulting stock position
About Macquarie Executive Solutions
Macquarie Executive Solutions can provide company executives and wholesale investors with tailored investment solutions to help them manage their share and option positions.
This includes the exercise and/or sale of large option positions through a variety of funding, risk management and sophisticated stock trading techniques that can be tailored to meet a wide range of investment needs.
Depending on their investment objectives, your clients can use any of the following facilities:
- Executive option sale facility. Your clients can receive the current value of their company options by selling them directly to Macquarie at any time until their expiry.
- Exercise and sale facility. Macquarie can provide funding to exercise your clients’ company options and sell the underlying securities for them.
- Tailored Equity Collar facility. Macquarie can also provide your clients with tailored risk management solutions for their resulting stock position.
How the Executive option Sale Facility works
Your clients can transfer their fully vested and exercisable employee share options to Macquarie.
We determine the value of the options, including intrinsic value and time value (if any), and pay that amount to your clients (less a fee).
We can also tailor the option valuation by determining the value of the underlying shares in one of the following ways:
- Shares can be valued on either the day the options are transferred to Macquarie or the day Macquarie receives the underlying shares from the company.
Shares can be valued using algorithm trading capabilities that offer the following services:
- Trading throughout the day to try to match volume weighted average price (VWAP). Note: guaranteeing VWAP incurs an additional cost.
- Volume of trading in a day may be set at a certain limit. For example, a sale will not constitute more than 30 per cent of the total stock traded in a given day.
- Spreading the valuation over a set number of days. This may reduce the likelihood of moving the market adversely with large volumes.