SEC Form 4 Transaction Code

Code M

Option Exercise

The insider exercised previously granted stock options. Often followed by a same-day or next-day Code S sale to cover the cost or tax obligation. Alone it is not a reliable directional signal.

Signal_Context

Neutral by default

Code M is an option exercise. The important signal is whether the insider holds or sells the shares after exercising.

How to read Code M

  • Start by confirming whether the transaction appears in Table I or Table II.
  • Compare the transaction value against the insider's remaining ownership.
  • Read footnotes for 10b5-1 plans, tax withholding, trusts, gifts, or issuer-directed actions.
  • Do not mix compensation mechanics with voluntary open-market buying or selling.

See this code in live Form 4 data

NVDAAAPLMETAMSFTTSLAAMD

Form 4 Code M — FAQ

>What does Form 4 Code M mean?

Form 4 Code M means Option Exercise. The exact investment signal depends on whether the transaction is voluntary, mechanical, compensation-related, or disclosed with additional footnotes.

>Is Form 4 Code M bullish or bearish?

Code M is an option exercise. The important signal is whether the insider holds or sells the shares after exercising.

>How should investors use Code M in insider trading analysis?

Investors should compare the code against transaction value, remaining ownership, insider rank, timing, and related transactions before assigning sentiment.