Insider Optionsare granted at no cost to the employee as an incentive to employees to get the share price moving higher. they have a quantity, an exercise price and a expiration date( usually at least a year) e.g. If the execise price is .30 the employee has the oppourtunity to buy his allotted number of shares at .30 before the term expires This is exercising the option, but it is only worth exercising if the stock is trading above .30. Say the stock is trading at .40. It is quite common for the insider to pay .30 (exercising his option) and then selling the shares in the market for .40 on the same day, making a sure thing of .10 @ share
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