It can be easily demonstrated that selling exchange traded calls or buying puts to a lesser degree is the only efficient way for executives to manage their equity compensation grants especially employee stock options.
But the companies wish to suppress that efficient strategy in order to benefit the company and the wealth managers. The companies and the wealth managers ally together to benefit themselves at the expense of the employee/grantees.
The companies create Insider Trading Policies where they seem to think that they can alter the equity plan contracts to their own benefit and the wealth managers.
They also promote the highly inefficient strategy of premature exercises of employee stock options, sell stock and "diversify", which of course benefits the company and the wealth managers.
Essentially the companies and the wealth managers are working together to defraud the employees.
Below are some links illustrating this situation.
http://www.slideshare.net/OLAslideshare/insider-trading-policies-and-employeestockoptions
http://www.slideshare.net/OLAslideshare/who-benefits-from-the-early-exercise-sell-an-1
john Olagues
olagues@gmail.com
504-875-4825
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