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Post by sla55 on Feb 27, 2018 19:27:55 GMT -5
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Post by boytroy88 on Feb 27, 2018 19:32:21 GMT -5
Is it me or does the form not have any info other than Dr. Kendall filed that he owns shares. |
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Post by celo on Feb 27, 2018 19:34:41 GMT -5
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Post by boytroy88 on Feb 27, 2018 19:35:50 GMT -5
He was awarded 180 k and change stock options at 2.76 each. Thx...I wrote in the other thread...so he didn't buy... |
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Post by traderdennis on Feb 27, 2018 19:36:22 GMT -5
Is it me or does the form not have any info other than Dr. Kendall filed that he owns shares. He was granted 180K in options with a strike of 2.76 |
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Post by celo on Feb 27, 2018 19:38:02 GMT -5
Dave will have to purchase the stock option at 2.76 to exercise it. The 500k goes to Mannkind and the difference goes to Dave. Hopefully the price will increase substantially and he will be rewarded
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Post by mnkdfann on Feb 27, 2018 19:51:26 GMT -5
So he was awarded options already at or in the money. Nice deal.
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Post by mnkdfann on Feb 27, 2018 19:57:06 GMT -5
Dave will have to purchase the stock option at 2.76 to exercise it. The 500k goes to Mannkind and the difference goes to Dave. Hopefully the price will increase substantially and he will be rewarded If one has the choice, one never exercises an American call early (at least not if the stock is not paying a dividend). The optimal trade is to simply sell the call. Is Kendall allowed to sell? Assuming so, his options already have (according to a quick Black-Scholes-Merton calculation) a value of about $2 each. |
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Post by mytakeonit on Feb 27, 2018 20:20:05 GMT -5
Why would he sell it when it'll be worth $18M in 3 years?
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Post by dreamboatcruise on Feb 27, 2018 20:41:20 GMT -5
Dave will have to purchase the stock option at 2.76 to exercise it. The 500k goes to Mannkind and the difference goes to Dave. Hopefully the price will increase substantially and he will be rewarded If one has the choice, one never exercises an American call early (at least not if the stock is not paying a dividend). The optimal trade is to simply sell the call. Is Kendall allowed to sell? Assuming so, his options already have (according to a quick Black-Scholes-Merton calculation) a value of about $2 each. No, employee incentive stock options can't be sold in the open market. There can be tax reasons why an employee might wish to exercise the options and hold shares instead. |
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Post by dreamboatcruise on Feb 27, 2018 20:45:25 GMT -5
So he was awarded options already at or in the money. Nice deal. It should have been at the trading price on the day of award. There were some tech companies years ago that got into trouble for basically backdating employee options to a day when the share price was at a relative low. |
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Post by sayhey24 on Feb 27, 2018 20:46:09 GMT -5
Why would he sell it when it'll be worth $18M in 3 years? Thats a great question. And, if they are not he has no one to blame but himself but I think he has a really great chance. |
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Post by agedhippie on Feb 27, 2018 20:54:15 GMT -5
It's an SEC requirement because of his position. The Remarks section has "No securities are beneficially owned" which is what you see when they don't hold any shares.
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Post by mnkdfann on Feb 27, 2018 20:58:35 GMT -5
So he was awarded options already at or in the money. Nice deal. It should have been at the trading price on the day of award. There were some tech companies years ago that got into trouble for basically backdating employee options to a day when the share price was at a relative low. Thanks. I guess I was thinking these options were normally granted at out of the money strikes. To give the execs a reason to work hard.  |
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Post by dreamboatcruise on Feb 27, 2018 21:18:11 GMT -5
It should have been at the trading price on the day of award. There were some tech companies years ago that got into trouble for basically backdating employee options to a day when the share price was at a relative low. Thanks. I guess I was thinking these options were normally granted at out of the money strikes. To give the execs a reason to work hard. That certainly could be done, but I can't think of a single instance I've seen it in the tech industry. And when a small company isn't yet public, the value that they put on the stock, and thus the strike of employee options, is often ridiculously low... to maximize the benefit to the employees/execs once the company does go public. |
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