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Re: SEC, Brokerages ask if you’re related to an officer/director/10%+ owner of a publicly-traded company when you open an account. I don’t think they actively m
by quickthrowman 6y ago
Re: SEC, Brokerages ask if you’re related to an officer/director/10%+ owner of a publicly-traded company when you open an account. I don’t think they actively monitor these people, but they’ll be looked at if there’s unusual trading activity.
Usually what happens in these cases is accounts with no/little activity suddenly have unusual options trading activity, like buying way OTM weekly calls that always profit. These transactions get flagged and reviewed and if they notice a pattern with names or something, it’s not that hard for them to put the pieces together.
- refurb 6y agoI would assume it's exactly this. You just filter down trade to those accounts that have either never purchases options in the past, or brand new accounts where that's the first trade AND where the options were highly profitable. Basically really unlikely investing scenarios.