PHOENIX, Jan. 22, 2016 /PRNewswire/ -- Pennystocksinsiders.com (PSI) released FREE insider trading reports for US market investors to track the following active stocks and penny stocks: Bank Of America (NYSE: BAC), Alcoa Inc. (NYSE: AA), Union Pacific Corp. (NYSE: UNP), Citigroup (NYSE: C), Wells Fargo & Company (NYSE: WFC), and JP Morgan Chase (NYSE: JPM).
When an insider such as company CEO, CFO, Director, or C-Level Officer exercises options on his or her penny stocks, he or she sometimes exercises and sells several lots within a certain time frame. One of the reasons is the insider may not have enough money to exercise all the options at once.
If an insider's shares are trading in the open market for $15 (obviously not penny stocks) and the insider has the options to buy 20,000 shares of stock from the company for $10, he or she has $100,000 risk-free capital gain coming out but must still pay up $200,000 to the company to get that profit. That's a fair amount of money to have on hand. The insider may first choose to exercise only 5,000 options, and then use the profit from the sale to exercise more options and continue doing that until all the options have been cashed in.
Exercising options piecemeal like this can make a pretty messy insider history for penny stocks or any stock with lots of selling. It might be wrong if people had viewed this as a negative indicator of the stock's future prospects. An exception is when an insider's options are getting ready to expire, the insiders might exercise them but not sell the stocks immediately, and this is a valid positive signal.
Report Highlights:
Bank Of America (NYSE: BAC):
Report highlight: Buying activity report by Chairman and CEO. MOYNIHAN BRIAN T
Read Full Report:
http://www.Pennystocksinsiders.com/PR5/012216A/BOA/BankOfAmerica.pdf
Alcoa Inc. (NYSE: AA):
Report highlight: Group of C-Level officers buying shares at 3 month low. Why?
Read Full Report:
http://www.Pennystocksinsiders.com/PR5/012216A/AA/Alcoa.pdf
Union Pacific Corp. (NYSE: UNP):
Report highlight: Group of Directors selling shares by exercising options before stock price reach 3 month low.
Read Full Report:
http://www.Pennystocksinsiders.com/PR5/012216A/UNP/UnionPacific.pdf
Wells Fargo & Company (NYSE: WFC):
Report highlight: Group of C-Level officers exercise stock options at 3 month high.
Read Full Report:
http://www.Pennystocksinsiders.com/PR5/012216A/WFC/WellsFargo.pdf
Citigroup (NYSE: C):
Report highlight: Group of C-Level officers exercise stock options.
Read Full Report:
http://www.Pennystocksinsiders.com/PR5/012216A/C/Citigroup.pdf
JP Morgan Chase (NYSE: JPM):
Report highlight: C-Level officers keep selling shares while stock price in downward trend.
Read Full Report:
http://www.Pennystocksinsiders.com/PR5/012216A/JPM/JpMorganChase.pdf
Insider Filing Source Reference: All observations, analysis and reports are based on public information released by the U.S. Securities and Exchange Commission.
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