It is a little complicated

I like the direction you have proposed. A lot like high finance.

If you believe in efficient market, the only thing is to sell calls timed with your options. The premium should be exactly what you might have gained, less time value.

The problem with this is the moral hazard. The shareholders granted the options not as a one time salary. They wanted the optionee to align with the company. Mostly likely PDLI has terms prohibiting directors from selling calls.

Last but most important, Mr. Saxe knows more about PDLI than most. If he would exercise 9.66 options when the market is 10.60, he knows good things are happening. This is the inefficient market.

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• what you said makes a lot sense -Arizona8- ♂ (241 bytes) () 04/13/2008 postreply 23:10:35