Intel Corp (INTC)

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Barrett acquired 512,000 shares by exercising stock options, at $2.81 a share

This Barrett acqusition/exercise and Otellini's exercise and sell (exercised at $3.41) are quite simple to understand when you analyze how Barrett and otellini got these options at those prices.
Checking historical quotes for Intel on Yahoo, Intel's stock price was last at those levels ($2.81 - $3.41) in late 1992 and January 1993.
I believe Intel can only give options to employees at fair market value, so these options had to have been granted in the late 1992-early 1993 time frame. Intel has been above those values ever since.
Options are usually granted with a staggered vesting period - so much per cent over so many years - and I would guess that full vesting would have occurred 5 years from the time of the grants.
Further, once fully vested, most companies put a time limit of around 5 years from the date of full vesting, after which the options expire completely and cannot be exercised.
This results in a 10 year time frame from the option grant date - at which the options will expire if not exercised.
Since late 1992 to early 1993 was just that - 10 years ago - and the strike prices ($2.81 and $3.41) were the last time Intel was selling for those prices, one must conclude that these stock option exercises are for stock options granted 10 years ago.

Otellini and Barrett are simply exercising 10 year old options (from grant date) that would have otherwise expired this month.

This is not the "bail-out-of-insiders" that some amd fanatics would have you believe.

-SZ