So long as these options are held after being converted and not sold, to me thats a very bullish sign.  If some are sold for tax contingencies or whatever, then....okay, I get that.  I don't want to see them all sold though, that to me would be cause for concern.  

One thing that is being left out of the discussion however is that these exercies mean some $$$ for the company, nothing hugely signficant, but to my mind every little bit helps.