MSM Has It Confused: Mr. Frazier's Option Exercise/Sale Of Yesterday Nets Only $365,000 Pre-Tax

This quite often happens -- when a non financial type looks at a Form 4 filing. Mr. Frazier yesterday exercised and sold 18,666 stock options -- long vested, and set to expire next March, if not exercised.

So, he exercised them. But he only netted the difference between the option exercise price, and yesterday's NYSE share price -- not the full $54 and change per option share. So the MSM figure floating around -- of around $1.1 million in gross proceeds -- is wholly inaccurate. More important than how much he made, however, is how much he still has "at risk" -- how much he's holding.

And he's still holding well over 438,000 shares of Merck stock (and much more, as yet unvested in restricted, and options) -- so, even the full 18,666 is miniscule by comparison. All he is doing is slightly diversifying -- afterall, he works there -- it is his paycheck -- and he holds a gargantuan load of Merck stock, even post the transaction. I'd read almost nothing into his sale.

Now you know -- but still a great "treat" -- no tricks, this All Hallows' Eve, for him! Enjoy yourselves, one and all -- I'm out!