One example could be Steve Jobs planning to leave Apple and only his closest friends and family are aware of it and they gradually load up on puts. When it was announced that Jobs had pancreatic cancer (2004) AAPL did take a small hit and it was reported that as much as 25%* of Apples worth is tied up in Steve Jobs. * I'm not sure the exact percentage but it was very high.
That's what I meant by full disclosure. The company can't simply buy and sell their own stock without full disclosure. All the best, Don
Thanks. You just refreshed my memory. That's what I remember also. MSFT did that for many years while its stock was on a bull run and made a ton of money from the MSFT puts they regularly sold that expired worthless, as I recall the news report. Assuming that to be factual, which I have no reason to doubt, then there is (or at least was) no legal prohibition against a company selling options (or at least puts) of its own common stock. Regards.