Zion Oil & Gas Inc (ZNOG)

[KyOil]

someone like microcaps1 can answer better than I, but here it goes...

He had a right to exercise an option to buy the shares at an exercise price for a 10 year term. The exercise price was higher than the current market price, so I think its not insider trading.

If he did not have an option but went out on the open market and bought shares just before an earnings announcement then it would be insider trading.

In the options case, he had no advantage in exercising now versus after the 3Q announcement (he in fact has a disadvantage now vs later since the price can move unpredictable even with good news). In the stock purchase case, he would have an advantage buying now vs after 3Q report assuming the news is good (i.e. buy now at a lower price)