Option Granting Practices and exploits Message Board

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Strategies & Market Trends : Option Granting Practices and exploits

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To: Glenn Petersen who wrote (68)	10/28/2006 12:38:57 PM
From: RockyBalboa	of 165

Thanks GP for posting that stuff. Automatic trading plans are a white spot here; little is known about the mechanics of such trade. I often assumed it is a sort of constant stock selling plan but from your post seems different in particular with the discretion issues - discretion over trading decisions. What about the specifications of a trading plan? -Insiders cede control over their actual trading to an outside advisor -insiders and/or the advisor define the mechanics of the plan: ie trade a certain amount if stock is ahead of a price target otherwise pass. -adjust share amounts depending on price -initiate/increase sales a certain time after a stock options grant.... "Thomson's LoPresti says investors tend to ignore such trades, assuming they are out of the control of executives. But that, he argues, is a mistake. " Thats what I thought too not considering the dark side of it. It is not even a issue related to the discretion of such a plan; even the information about plan details (ie, timing of share sales) can be valuable input for company insiders to adjust their information policy. Here are lots of automatic sales: I wonder how they are reported as many different prices are reported on one day in the month as it seems: de.finance.yahoo.com

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