4 ms·
At this point it borders on cliche, but he broke at least like 4 of Matt Levine's (Not Legal Advice) Insider Trading Laws: - Don't do it - Don't do it by buyi
by gimmeThaBeet 3y ago
At this point it borders on cliche, but he broke at least like 4 of Matt Levine's (Not Legal Advice) Insider Trading Laws:
- Don't do it
- Don't do it by buying short-dated out-of-the-money call options on merger targets.
- Don't email or text about it.
- Don't do it in your [mother's] account.
- tombert 3y agoI hadn't heard of those, but that's brilliant. The second one in particular just seems so obvious to me. Options are a case where you either "win or you lose everything", and even more you have to "win by a certain time". Options are kind of fun to gamble with, I've done it once, but the advantage of vanilla shares is that you can wait as long as you need to to "win". It doesn't provoke nearly as many red flags.
- smallmancontrov 3y agoYes, lower leverage means fewer red flags... but more leverage means more money ;)
- tlogan 3y agoIt’s important to note that when large option trades aren’t part of a hedging strategy, they almost certainly attract scrutiny from the SEC.
- TuringNYC 3y agoWonder how the SEC sees the 99% of times people lose money on them, a la WSB
- 0cf8612b2e1e 3y agoLosing money is the default state and nobody cares. Like gambling in Vegas. The House only notices when the money moves in the wrong direction.
- gregw2 3y agoFINRA was an early adopter of AWS cloud. Here’s a case study from a full decade ago, 2014. https://aws.amazon.com/solutions/case-studies/finra/ https://aws.amazon.com/solutions/case-studies/finra/ When I heard back then they stored every side of every trade without getting hacked, I figured the Fortune 500’s security concerns with moving data to the cloud were likely to melt away, for better or worse.
- mhh__ 3y agoOptions are just a way of stating a view on a distribution, you can structure trades to cap risk in exchange for lower payoff and so on.
- toomuchtodo 3y agohttps://lawsofinsidertrading.com/ https://lawsofinsidertrading.com/ (Matt Levin's Laws of Insider Trading from Bloomberg's Money Stuff)