Hi, Paul.

I'm as big a critic of insider trading as anyone. But it's standard practice to "flip" options the day you receive them -- it really has nothing to do with his assessment of the company profits. If you exercise the options, the difference bwteen the purchase (usually below-market) price and the market price is immediately subject to AMT tax; in the dot.com dot.bomb, there were many people who owed the IRS tens of thousands or more on "profits" that had actually turned into losses -- but you're restricted to deducting the first $3,000 in losses from "ordinary" or AMT income, so the net result was anything but a wash.

-- Dave K, Speakeasy Moderator
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