4 ms·

So a "trade canary", then.

• mmanfrin 11y ago
  I wonder if it would be possible to track the continual sales of stock by large shareholders, use that to buy options based on the canary trades disappearing. This would then lead to the question: am I an insider trader if I am basing my options off of the lack of sales of insiders?
  • airza 11y ago
    No! Matt levine's articles (which I recommend reading) give an excellent description of this.
  • hueving 11y ago
    Their sales are very sporadic so it's not as reliable as you would think. Sometimes they need cash to pay for a new house, hitmen, etc. Other times they let the stock vest for longer because they don't need the money.
    • mmanfrin 11y ago
      Continual sales, I mean -- large owners of big companies often have recurring monthly sales of x number of shares. Deviation from this is notable, and a possible source of information.
  • losvedir 11y ago
    Interestingly, if you look at the Martha Stewart chart posted, there's a big spike when she would have sold but didn't... maybe there was some real news at that time, too, I don't know, but maybe there are algorithms already set up to detect this?