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Based on what timing? He sold the contract the same day he purchased the stock. Even if you’re only going off the information in this article, it doesn’t seem t
by AmericanChopper 5y ago
Based on what timing? He sold the contract the same day he purchased the stock. Even if you’re only going off the information in this article, it doesn’t seem that way at all, as they point out he “netted a healthy profit” on the sale.
- HWR_14 5y agoI didn't get that he sold the option the same day he bought the stock from the article. Maybe I misread it. If so, than that obviously makes it not suspicious. I read it as "he bought the stock a month ago" and then "later on, he sold an ITM option"
- AmericanChopper 5y agoI agree that if the author had made any attempt at all to try and actually cover the facts, you probably wouldn’t have had that misunderstanding. If you look at this guy’s disclosure (the one linked in the article no less), it seems as though he sells a covered call on just about every allotment of stock he purchases (which is a perfectly common strategy). So it doesn’t even seem like an out of the ordinary trade for him to be making. I don’t agree that the article implies in any way that he was selling ITM calls to try and exit a position though. But it does seem to imply that he had control over when the contract was exercised, and that he may not have even had a contractual obligation to sell the stock, which is very obviously complete nonsense. So who knows what the article was trying to say, apart from maybe GOP man bad?…