When should management be allowed to sell?
Not when the price is rising... kills momentum
Not when the price is falling... accelerates the decline
Not when the price is trading in a range... will cause a negative breakout
Not after good news... shows management doesn't think it's that good
Not after bad news... shows management thinks it's really bad
To sell stock, management must show a compelling personal need, such as taxes or medical bills. Improving the house, taking vacation, buying a car for their kid should be subject to shareholder approval.
Management should only sell after I've sold my stock because now it won't hurt me and that's what is important.
If you've read the above and do not find it ridiculous to imagine any of those restrictions please consider how you would feel if you had the same restictions placed on your stock sales.
The fact is that this is their stock to sell for their personal benefit, as long as they comply with the spirit and the letter of the law when it comes to insider trading.
When has there been an insider open market purchase?
If you work at a shoe factory and get 15 pair a year free or at a discount how often would you go out and buy shoes in a store at retail? (okay, bad example for some women... ooops, now I'm in trouble for being sexist!) You might even sell a few extra pairs - doesn't mean you think they are poor quality.
Management should (and I expect do) ignore option dates as they go about their business. If they were to adjust the timing for options, THEN that would be an issue. Because then they would be helping one segment of investors at the direct expense of the others, and as some on this board demonstrate, those that they hurt would blame management and probably take action to recover their losses. Management's job is to do what is best for the company and for their financial situation. They have no responsibility to the option players, even the "good (betting on price increase)" ones.
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