carnyplantman, I hope nobody you care about is using you as a tax advisor.
You say Butz, having exercised his options, should now flip the stock before it goes down. Let's look at some numbers .... rounded off.
He popped $190,000 Monday on 75,000 options and could, using your suggested option, flip the 75,000 shares for a $100,000 short term profit on which he'd pay $35,000 in taxes for a net profit of $65,000.
Alternatively, he probably has a bunch of 50� or lower basis stock. He could sell about 30,000 of those shares, have a long term profit of about $100,000 and a net profit after taxes of $85,000.
Somehow I think the latter makes more sense but you're free to believe whatever you want.