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My understanding from dealing with this in a prior life is that the SEC will investigate these outliers as standard practice and 1) try to connect the dots betw
by nugget 10y ago
My understanding from dealing with this in a prior life is that the SEC will investigate these outliers as standard practice and 1) try to connect the dots between the buyers and any LNKD insiders, and 2) ask the buyers to show all of the due diligence and work product that went into deciding to make the trades. If you were the buyers and knew anyone with prior knowledge of the deal and couldn't document #2 in great depth then you are likely screwed. Presumably, anyone working in law or finance would know that this is standard practice and stay far away. Given how volatile LNKD's price has been over the last year, I could see these being legitimate trades (on the other hand, I actually took the other side of some Nov $160 covered calls and felt great about the hedge until this morning). Also keep in mind that these kinds of ''crazy'' trades are frequently placed as part of a larger more complex hedging strategy with net upside much lower than the numbers mentioned in the article.[1]
[1] https://en.wikipedia.org/wiki/September_11_attacks_advance-knowledge_conspiracy_theories#Insider_trading https://en.wikipedia.org/wiki/September_11_attacks_advance-k...
- puke 10y agoA coworker told me that his brother once bought a large amount of stock in some company that had been down for a while because he "felt good about its future". He had (allegedly) no connection whatsoever to anyone in that company. The next day an announcement came out that the company was being acquired for a huge premium. Ended up having to deal with the SEC. He eventually came out in the clear, but it was still a huge hassle and caused him a lot of stress.
- xt00 10y agooh that's interesting.. kinda nuts if that happened to you.. one day you are like, "man I'm so smart!" then the next you are like.. "oh man, I'll just give the money back to avoid getting investigated by the feds..."
- AznHisoka 10y agoSounds like a casino alright
- therein 10y agoTell me, why did you bet on 00?