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Technology Stocks : AMD:News, Press Releases and Information Only!
AMD 227.69-1.1%11:59 AM EST

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To: Kenith Lee who wrote (5890)4/30/1998 12:30:00 PM
From: Kevin K. Spurway  Read Replies (3) of 6843
 
Kenith,
Exactly. Even if the options do expire after five years, it simply means that Intel executives are exercising in the money calls by BUYING stock from Intel. If they were required to sell the stock right after they bought it (which they clearly aren't), that would defeat the whole purpose of the employee stock option plan (providing performance incentives). So, I think its safe to conclude that this has nothing to do with option expiration.

On the other hand, executives at successful companies sell off portions of their holdings all the time. It's not uncommon, and as we all no there is no proven correlation between insider sells and stock price declines. For these execs, selling a portion of their holdings is smart, too--you don't want to keep all your eggs in one basket, after all. In a company like Intel where there are lots of high level managers with lots of in the money options, you can expect to see insider selling ALL the time. It would be significant only if the insiders were selling all or most of their positions (including options) in Intel.

Kevin
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