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.
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Redstone, the CEO of Viacom (owner of CBS) has seen his company lose right at 3% of its value in the last week (wonder why?). Anyway, it seems that on September 14th, he acquired 341,500 shares through a stock option deal at $15.25/share and immediately sold them at $35.00/share - a nice little $6.7 million profit.
Mr. Redstone wouldn't perhaps know something we don't - and that he shouldn't have acted on, did he? Just wondering aloud...