An efficient process, from both a regulatory and tax perspective, for
individuals to hedge employee stock options. No margin is required for a
listed call option written on an equity security when the account holds a
"long" position in a vested employee stock option which can be
immediately exercised without restriction (not including the payment of
money) to purchase an equal or greater quantity of the security
underlying the listed option provided that the vested employee stock
option does not expire before the short listed call option, and provided
that the amount (if any) by which the exercise price of the vested
employee stock option exceeds the exercise price of the short listed call
option is held in or deposited to the account.