Replies to post #144026 on Lightwave Logic Inc (LWLG)

[tedpeele]

To describe it as "business as usual" doesn't jive with what I'm seeing

He exercised his option right to buy 50,000 shares at .84 and then sold 27k of them at market prices. That's how the filing appears to me. The cash needed to buy would have been around $42k, yet it appears he banked over $200k by selling. At least he kept the remaining shares, but IF that is a roughly accurate depiction, one wonders why he would sell any at all at this point in time.

Still bullish short term as the overall market rally isn't over, skeptical longer term.

[RebelDog]

You need to really calculate what they are selling and why. These are expiring option grants where they are selling only enough shares to cover the tax burden. They are then holding on to the remaining shares. All these option transactions are treated as ordinary income so the tax liability is around 42%. This is the same as JM did a short time ago.

For example:
If the price at option execution was 8.45 and the tax burden is 42.62%

Strike Strike Current Shares to Shares to Net
OPTIONS Price Value Value Spread Cover Buy Cover Tax Shares Held

40,000 0.920 36,800.00 338,000.00 301,200.00 4,355 15,192 20,453

I hope this helps. This is not a conspiracy theory.