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I can't wait until they reveal their findings about Bear Stearn's insider trading. I heard it was going under one week before it happened; it was the worst kept
by fallentimes 18y ago
I can't wait until they reveal their findings about Bear Stearn's insider trading. I heard it was going under one week before it happened; it was the worst kept secret on Wall Street.
- steveplace 18y agoI remember the day before the stock tanked. The volume vs. open interest on way OTM puts was absurd. Traders made several thousand percentages on their positions. Edit: picked up some historical data. 40k volume on front month 25 puts for .275 a contract. Finished next day at 4.25, and the day after (Monday) at 20.30. This one gives you about a 7400% gain.
- sokoloff 18y ago"Worst kept secret" approximates "public information" at the limit.
- fallentimes 18y agoI don't know. Does it? A relatively small number of people made a ton of money off of it while a relatively large number of people got burned.
- sokoloff 18y agoI was assuming that your measure of badness was "the more people who know this secret, the worse kept it is". By that measure, the limit of a poorly kept secret is exactly public information. I'm having a hard time coming up with any other continuous measure of "badness" of secret keeping.
- fallentimes 18y agoMe too. It will be interesting to watch this play out.