Options Excercise Employee Small Cap Strategy

Discussion in 'Stocks' started by eesnz, Aug 18, 2008.

  1. eesnz

    eesnz

    In the late 90's in our day trading office we had a strategy that worked well for awhile, can't find any research on this topic.

    Small Caps usually issue employee stock options in bulk. 90% of employees will cash them in because they just want the money (they are individually small blocks of options, say 10,000 - 100,000 shares for secretaries and IT heads, etc.) but companies issue them in large blocks, and they are all exercised on the same day. Legally these companies must post this information, and we had a room going where we would short the stock pre-date and buy back after. Anyone know the name of this strategy or can we get something going again? please post any links or references or let's find some sites that post this information and get a discussion going.