Good point FJ
It may not be that Sheldon wanted cheap options, at least not cheap. His action was not to drop the share price but to sell the number of shares he wanted to because they would be replaced with the options at whatever price the options will be. Lets say he had his limit of shares, the total number he could afford even. He also had a pre-arranged buyer. It just makes sense to do that deal. It's really no different than the guys who sold their options after they exercised them to pay the taxes and whatever reason. He now has the cash in advance to pay for them (making money for himself on it) and the options cost him nothing until he exercises them.
He also sold them out of his rrsp and paid full taxes on them. These shares are valued at $1.42. (he'll probably sell his options for a lot more later when the time is right). He will make a bundle on that alone if he acquires the options and sells the same amount of shares at a much higher price at capital gains tax that will be only on half his profit rather than full taxes that he had to pay on his rrsp's.
That, plus the fact that in a couple of days he's going into blackout makes a whole lot of sense to me now. I don't think anyone of us or anyone for that matter would pass up on that opportunity.
I'm satisified with that now. Thanks FJ