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Link to story
Cliff's Notes: Once again option volume a bazillion times above normal occurs the day before a large buyout (Blackstone-Hilton).
Honestly, wtf? How is this not handled yet? It seems that with every major buy-out that this [censored] occurs. 70 options with a strike of $40 were traded in the last 11 trading sessions (TOTAL!). Then 5000 are traded Tuesday. They should prosecute each and every individual that traded them that day and throw them all in jail.
Is the problem that there is no way to PROVE they received insider information? Is trading alone not enough to warrant this? Obviously a few people (MAYBE LIKE 10 OUT OF 5000) were legitamitely trading, but the rest are all frauds and deserve to have all their assets siezed.
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so how do you find the 10 that are legitimate? what if they all claim that they were watching the flying patterns of executives and noticed a spike in each one's meetings with the other? shouldn't that warrant purchasing call options on the acquired's stock? the simplest would be to try to find relationships between option buyers and the companies or other 'insiders.' often though, that is tough. i'm sure the SEC will investigate but you can't just immediately convict all traders b/c there is some probability that it is ALL legitimate. even if that probability is close to 0, you stand to convict innocent people if you just arrest them all (with a greater than some % confidence interval required by law etc.).
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And if it is the case that this [censored] isn't something that can be prosecuted because of lack of evidence, then shouldn't they just do away with options? If not then they are basically allowing collusion and fraud.
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um, wow. talk about baby out with the bathwater lol.
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For some reason this [censored] pisses me of like a mother [censored].
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i can see that.
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I'm sitting on ass-loads of proprietary knowledge for which I had to sign a bunch of [censored] saying I wouldn't leak anything "material". Then I see this [censored] happening every god damn [censored] day and nothing is being done abuot it.
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sorry bro, don't be tempted to breach the NDAs though since you know the second YOU doit, you'll get arrested.
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[censored].
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agreed.
Barron