RE:RE:FOBI CEO BUYS MORE SHARESI will provide you with my thoughts, which may or may not be correct in this instance.
Companies provide "Options" to buy stock at a fixed price, for a fixed period of time. After said period of time, the Option to Buy expires. The employee Option to Buy, has nothing to do with the Options Trading Market of Puts/Calls. The idea is to provide employees an incentive to:
- Buy shares at some future point
- To offer the potential of a future gain at a predetermined price
- Incent employees to work hard to increase the companies value and share price such that the share price exceeds the Optional "Buy" Price.
- I'm not certain, but employee Options to Buy may terminate if the employee leaves the company. Hence, it would be an incentive for the employee to stay to retain the Option to Buy
Your initial take that it would make sense to exercise an Option to Buy if today's share price were $0.75. One would be able to exercise the options to Buy at $0.325 (as in Mr. Anson's case yesterday) and immediately sell it for Capital Gains in excess of 100%.
There could be other reasons for Mr. Anson to exercise an Option to Buy at $0.325 when the price today:
- Mr. Anson has excess Cash and wants to support the company with a view to the future
However, my guess would be the following:
All employee Options to Buy have a terminating date. I would guess that the 325K+ share option exercised today were due to expire in the very near term. I would also guess that Mr. Anson has inside information about the near future of several discussion, opportunities, negotiations, etc. such that his perception is that the FOBI share price will rise in the near future (based on his inside knowledge) and therefore, exercising his Buy Option at $0.325 today will make perfect sense in the near future.
I assume that it provides you with a reasonable answer to your question.
Cheers and stay informed, jdfm22