Originally Posted by kingstalker
I work for UHS and receive their stock at a 10% discount quarterly. I currently put 10% of my after tax dollars into the stock every check. UHS is down 20% in the last year. I am wondering what strategy I should employ with this discount. Should I continue with 10% or get aggressive? I can afford the risk as I save the majority of my check.
I highly doubt you can sell it that fast. If you can, you should max out what you can buy and sell it as fast as you can.
You invest $500, your EV (with 8 dollar commish) is $42 dollars. You make that quarterly. Thats 8.4% return over 3 months or 33.6% annualized. All in.
Even if the stock goes down just treat that as variance. Sell it and take the loss, it will help you when you run better to offset some of your capital gains tax.
If you have enough cash, your EV is better obviously if you dont sell, but maxing out and selling is better than not maxing it out.