Mar. 11 at 2:02 AM
$RITE
The CEO just used stock options that didn’t expire until August 2027.
Stock options are basically a coupon to buy shares later. He could have waited another year or more.
Instead, he used the options now and turned them into real shares.
That means he now actually owns the stock, so if the price goes up he wins, and if it drops he feels it too.
Investors usually see this as “skin in the game.” If the CEO thought nothing good was coming, he could’ve just waited.
It doesn’t guarantee anything, but insiders usually know the company’s plans better than anyone.
So when a CEO increases his ownership early, many people take it as a confidence signal that something positive could be ahead.