The conclusion will be that Insiders only do it because they are unaware of modern financial theory and their position as insiders gives them a cognitive bias that makes them believe it is possible to make money buying options ahead of an unanounced takeover at a premium to market. Poor deluded souls.
It was Paris' guards from jail. She paid them off with information so they didn't stick the "Momma" in her cell. Just a bit of speculation . . . :eek:
Must be Goldman, you know they can do what ever they want, know one is going to say anything. They are now the biggest crooks on the street. They got their people in the top political spots.
do you have to purchase the "system" for a grand or whatever they charge, and put in your own parameters, or do they have some other special service just for that? I remebmer having something for $50/month a while back but i think they had the unsual activity set up for ultra high $ because hardly ever anything showed up, and if it did it was already out on something like briefing, fly, etc.
My friend used to work with a manager who get these tips. The manager always pass the news to my friend, but my friend never took the "advise" until it was too late. I was I know somebody like that. It will make my trading life so much easier.
It's easy until you get caught and sent to Club Fed. Was there a way to sniff this out through technical analysis and go along with the insiders without actually knowing anything? How have other options performed in the days after a suden 8x surge in volume? The article keeps talking about all the buying, but someone had to sell to the buyers. Did the price of the calls run up in an unusual way?
How many get sent to Club Fed? I'm guessing most get off with a fine, disgorgement and a slap on the wrist. Basically insider trading is a crime with little downside and huge upside. If you get caught you give back the money and get fined, but if you don't get caught ... well I guess you still have to pay taxes.
The actual penalties are treble damages and jail time, and the accounting they can use to determine illegal profits is draconian - they don't let you deduct losses, so if you bought and sold a stock twice on inside information, making hypothetically $1,000 on the first trade and losing $900 on the second trade, you still are deemed to have made $1,000 in illegal profits that day. However, I agree that there is no way to know how often people get away with it, but in my experience, stocks always move before news. That's just how it works. Letting the market seem like a conspiracy against you is not a productive emotion. I'm more interested in learning how to spot the insiders and make money off the wake they generate.