Attached is a Comprehensive Article by John Olagues

and Ray Wollney.

This article contains all the information about managing

your ESOs. The article does not have much discussion on

buying puts to hedge.

However, in some circumstances buying puts can be the

best strategy.

Puts can be bought in IRAs and achieve a tax free gain

on the put profits.

Long term capital gain can be achieved on puts bought

outside of an IRA if the puts are held for more than one year.

The straddle rule 1092 makes it such that the losses on

put purchases can be used against the gain on your ESOs.

In light of the many superior ways to manage ESOs over

premature exercises and sale of stock, it is a wonder

that anyone promotes premature exercises.

Also stay away from "zero cost collars". Its generally

a bad deal.

John