BBC article about share prices of gaming companies.

http://news.bbc.co.uk/1/hi/business/5397920.stm

Maybe this is easier to understand.

Your company gives you 10 options to buy your comany stck price at $10. Normally this would be when the stock price is already higher than $10. Lets say the price is $20. Also, normally you wouldnt be able to exercise the options for some time period. Lets say 6 months.

So when that 6 months is up, you can "exercise" your options and buy 1000 shares (each option is 100 shares) for $10 each, no matter what the stock price is at that time. SO if the stock price is $50 at that time, you buy the shares for $10 anyway. Now, its your option if you want to sell the stock at that point or not.

So in Partys case, the execs are exercising options which means they are buying stack at the predetermined price. The currect price has nothing to do with this, which is why its strange that they would do it right now. Unless the options were about to expire, theres no need to exercise them right now.

If the stock price is $20 right now and they believe the stock is worth $100, that doesnt matter because they buy the stock at whatever the options strike price is (not the currect $20 price). if the stock goes up over the next weeks, that doesnt matter either because they could still buy the stock at the strike price. So if the stock goes from $20 to $60 in the next weeks as the stock recovers, it doesnt affect the Party execs at all. Their buy price is locked in at whatever the strike price is.

Unless they think that the only way from here is downhill and decide to excercise their options and then sell of their stocks ASAP.

I guess the only reason they would do that now is that they see a dark future ahead, at leas stock wise.

They are probably kicking themselves for not having done this the week before, now they lost half their value.

/Cooper

But if they wanted to immediatley sell the stock they just bought thru exercising their options, they would have to publicly disclose that as well since they are officers of the company, and no disclosure like that has been filed, so they cant be selling.