Replies to post #364880 on Anavex Life Sciences Corp (AVXL)

[McMagyar]

When you fork over $500,000 to exercise options at $10 a share.. that to me is an insider purchase. Especially when the stock is AT $10 per share.

Let me slow this down for you,
Maybe I got this wongk and you may splains right & proper..

A company grants options to purchase a stock as a reward, and the options usually are good for a number of years at a certain price, a price when granted are either at market or below market, making the options a value to the employee and a cost to the company.

It’s called an incentive .. see how that works?

Now a rational person would wait until his options to buy 50,000
Shares at $10 was making money, a RISKLESS transaction.. they would exercise their right to buy $10 stock when anavex was at $50 per share.. see? Get it? They would be ahead $2,000,000 before they came up with $500,000 to exercise thur option!

But our insider put up $500,000 at a value of $500,000..

I think we will see more insider buying because I consider exercising options when share prices is at exercise price insider buying.

[sab63090]

I need to leave for some tests at hospital, but I remember the CEO has some $18 strikes with current loses on them....but if I have remembered correctly doesn't he have some deep in the money options which are expiring soon?

He will need to exercise them and sell some or all! We'll get another form 4 on those....

His new options which are at a market related price based on the proxy vote.