Now just for fun, let's say YOU are in Cuban's position. YOU get the insider info, and although you know that it is illegal, but you also hate to lose money. What would YOU do??? I would probably play an option spread on the position, with BOTH sides. Sure one side is going to lose, but the other side is going to make up for it, and the most important thing is: DENIABILITY. So I can always say (because of the losing side) I was just playing a strategy, and got lucky.... Just buying the puts is too obvious....
I put my finger on the sell button waiting for the information is releasing to the public then click! Nobody will read the information very fast.
Cuban is the classic "lucky fool". Founded a BS internet company that would have folded in 99% of years, but in a few years the dot.com historic bubble of bubbles not only bails him out but makes him rich. Like a lotto winner who didn't even mean to buy a ticket. Since then, he's done nothing except destroy value and splurge his money on typical clueless fat rich fucker pursuits like buying sports teams, whilst simultaneously promoting legislation that would make it much harder for small fry to get rich like him. A pathetic, loudmouth, clueless, uneducated, unseemly, vindictive, socialist, hypocritical moron of the worst kind. Wants to sound like a maverick, but is just another establishment conservative hack. Who knows if he did any insider trading, and who cares. The fact is, he's a moron who is only differentiated from the typical sports bar bore by the fact that his bank balance is fat. That's a sad reflection of the mores of modern American society. In Europe he would be ignored as a clueless nouveau riche braggart.
He's a dirt bag that made a flick that shit on our american service men and women. It portrayed our military men and women in the worst possible light. http://www.foxnews.com/story/0,2933,311812,00.html
That is probably illegal too. Maybe a stop loss given to the broker would work, although the stock could gap after the news... The thing is, most of us would have done the same thing. The irony of the Martha Stewart case is that 4-5 months later the stock came back nicely and she wouldn't have lost anything....
She should have had a broker expert. Well, she actually had one and that caused the problem. By the way the money she saved was only $45 K, so much less, than in Cuban's case, making her a much bigger fool. While she was in jail, her company's stock doubled... Interesting sidenote: "In June, 2008, the UK Border Agency refused to grant her a visa to enter Great Britain, because of her criminal conviction for obstructing justice. She had been planning to speak at the Royal Academy on fashion and leisure industry matters."