UPDATE: CHTT - Identifying Order in Flow in a Takeover

Discussion in 'Trading' started by livevol_ophir, Dec 24, 2009.

  1. livevol_ophir

    livevol_ophir ET Sponsor

    Dec 21st I posted this blog:
    Chattem (CHTT) - Identifying Order in Flow in a Takeover

    Available here for interested parties:

    I saw some "smartly" placed over flow in the Dec calls; the 70, 75 and 80 lines reeping $6 million in profits from the "surprsie" CHTT take over by SNY.

    So what? Well, how about this story from M2 Communications:

    "The SEC alleges that Nicolas Patrick Benoit Condroyer and Gilles Robert Roger, ... purchased hundreds of "out-of-the-money" call option contracts for stock in Chattem, Inc...

    December 21, Condroyer and Roger immediately sold all of their options for illicit profits of approximately $4.2 million. The SEC filed insider trading charges against them the very next day."

    It seems 70% ($4.2/$6) of that $6 million I identified was in fact allegedly insider trading. Bad boys...

    And who says watching order flow can't win?

    You can read the details on my blog here: