business news
Insiders Opting In
By
Jonathan Moreland
Dec 10, 2012 11:55 am
When insiders choose not to sell all their options right away, it often relays meaningfully bullish executive sentiment.
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Reviewing Your Own Options
Insiders opting into their shares doesn’t just happen in crises, though. Some percentage of options grants (roughly 5%) are retained in whole or in part on a daily basis. To make these interesting accumulations easier to identify and screen for, InsiderInsights.com makes a point of demarcating options trades in its database that were sold only partially (transaction type OE*), or not at all (an OB transaction type). [Editor's note: The author also has a special screening tool for these stealth acquisitions by insiders, and include a screen of the largest of these transactions in his newsletter.]
Below is a screen of recent “opting in” activity from insider filings that hit the SEC in the past month that InsiderInsights’ analytics rated as particularly bullish. I’ve written previously about Celsion (NASDAQ:CLSN) on Minyanville being a valid high-risk/high-return investment candidate, and it’s comforting to see insiders continue to opt into these much appreciated shares.
In addition to Celsion, other companies where insiders notably opted in include Hewlett Packard (NYSE:HPQ), Dillard's (NYSE:DDS), FutureFuel (NYSE:FF), and Devon Energy (NYSE:DVN).
Like most insider screens, however, this one is producing investment ideas across investment styles and risk profiles. Use it as a way to focus your fundamental research and chose a name that fits your own needs.
Click to enlarge
Editor's note: Jonathan Moreland is the founder of Insider Insights and author of "Profit From Legal Insider Trading."
Insiders opting into their shares doesn’t just happen in crises, though. Some percentage of options grants (roughly 5%) are retained in whole or in part on a daily basis. To make these interesting accumulations easier to identify and screen for, InsiderInsights.com makes a point of demarcating options trades in its database that were sold only partially (transaction type OE*), or not at all (an OB transaction type). [Editor's note: The author also has a special screening tool for these stealth acquisitions by insiders, and include a screen of the largest of these transactions in his newsletter.]
Below is a screen of recent “opting in” activity from insider filings that hit the SEC in the past month that InsiderInsights’ analytics rated as particularly bullish. I’ve written previously about Celsion (NASDAQ:CLSN) on Minyanville being a valid high-risk/high-return investment candidate, and it’s comforting to see insiders continue to opt into these much appreciated shares.
In addition to Celsion, other companies where insiders notably opted in include Hewlett Packard (NYSE:HPQ), Dillard's (NYSE:DDS), FutureFuel (NYSE:FF), and Devon Energy (NYSE:DVN).
Like most insider screens, however, this one is producing investment ideas across investment styles and risk profiles. Use it as a way to focus your fundamental research and chose a name that fits your own needs.
Click to enlarge
Editor's note: Jonathan Moreland is the founder of Insider Insights and author of "Profit From Legal Insider Trading."
No positions in stocks mentioned.
