http://xml.10kwizard.com/filing_raw.php?repo=tenk&ipage=7274650 Do I understand correctly that a director exercised 3,387 options? Can someone explain the profit, cost basis of calls, and so forth?
he was granted options yo yo
Granted and exercised?
Are these options that were awarded to him by RIG for being on the board of directors?
looks like these were options that were given to him as a form of compensation for being on the board. they were excercised and and the shares were sold on the same day for $70 a share. you can see in table 2 that the shares were acquired then disposed of.
I figure the options are coming to expiration, they’re in the money, so the director exercised. Simple enough.
QuantJock_MBA Wrote: ------------------------------------------------------- > I figure the options are coming to expiration, > they’re in the money, so the director exercised. > > > Simple enough. Expiratoin for the options were 5/7/2011 from table 2 section 6
Exercised and sold on the same day… Also, note they were sold pursuit to a 10b5-1 letter so he had a plan in place either once it hit a certain price, or at this specific time, etc. We generally keep our 10b5-1 letters simple but they can be very flexible
There was an interesting article published in the September/October FAJ titled “Cashing in on Managerial Malfeasance: A Trading Strategy around Forecasted Executive Stock Option Grants” The authors study revolved around data from Compustat’s ExecuComp database which is a compilation of Form 4 filings. The authors proposed a trading strategy that shorts stocks shortly before executives are awarded options and going long the stock after the options are awarded.
Did you get that commodities type job on one of the coasts qj?
I got bad news 2 days ago. It was a hard swallow after getting that close. Since it’s a big Co. They did say I would still be considered for a similiar position.