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Technology Stocks : Intel Corporation (INTC)
INTC 34.10-1.8%10:32 AM EST

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To: Thomas M. who wrote (47822)2/14/1998 2:29:00 AM
From: Jeff Fox  Read Replies (1) of 186894
 
Thomas, re Insider selling

He said the selling was light in the summer,
heavier in the fall, and even heavier now.


I wonder if Mr. Gabele knows the option expiration dates of the sellers. The activity might correlate better to these dates than the season of the year. Or perhaps the selling correlates with the estimated tax payment due dates.

Options must be exercised before expiration and the dreaded AMT taxes paid. The "new" ISO shares MUST be held for eighteen months to qualify for capital gains rates, but the AMT is due in the year of exercise. This forces sale of existing shares to cover taxes.

Just because they sold don't mean that they were happy about it...

Jeff
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