BTW I asked, they can be in blackout and get options..you just can't exercise them.

That doesn't sound correct. The TSX regulator says:

"When undisclosed material information exists, it is not appropriate for the board of directors (or a duly appointed committee of the board) of a listed issuer to set option (or other awards) exercise prices, or prices at which securities may be otherwise issued on the basis of market prices which do not reflect material information of which management is aware but which has not been disclosed to the public."