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It's amazing that they caught him and he got what he deserved but there's one thing that worries me... We're talking about a petty $120K in profit for Panuwat

It's amazing that they caught him and he got what he deserved but there's one thing that worries me... We're talking about a petty $120K in profit for Panuwat according to several sources: https://archive.is/SGklv https://archive.is/SGklv How comes the SEC can even find something like that? $120K in options trading win/loss is nothing. Peanuts. It's also quite wild that this one is the case we hear about. There's obviously actual insider trading ongoing with proper amounts and not this $120K non-news event. So how comes they even found him and how comes it's that minuscule, ridiculous, amount that gets reported and published everywhere? On a big equity or index, $120K can be a single option contract on a 5% move in a single day (OK, 5% moves in a day aren't the most common but still). And AFAIK there are millions (tens of millions?) of options contract exchanging hands daily. So, well, $120K... To me it's just seriously WTF?

JumpCrisscross 2y ago
> How comes the SEC can even find something like that? It’s automated. You look for high-entropy trades after receiving the filing announcing the corporate event.
- TacticalCoder 2y ago
  > It’s automated. You look for high-entropy trades after receiving the filing announcing the corporate event. So they find these dubious trades and then check the trader's trading history and personal wealth? Stuff like that? Basically the trade is automatically flagged and then they notice, for example, that the dude hardly ever trades, never traded that stock, isn't familiar with $120K wins on a trade, etc.? And if it all ticks, they then check which company he works for and it there's a relation with the company he traded? I mean: it is amazing that they got him to me. But I find it also, in a way, quite spooky. There's definitely a vibe in the comments in this thread, including from mine, about "going after the little guys".
  - JumpCrisscross 2y ago
    > they find these dubious trades and then check the trader's trading history and personal wealth? History and employment, as well as spouses’. > isn't familiar with $120K wins on a trade, etc. Most insider traders don’t make that much. There used to be a site where it showed you some insider information, and you tried to guess what the stock did the next day. > a vibe in the comments in this thread, including from mine, about "going after the little guys" SEC goes after anyone who insider trades. DoJ tends to only prosecute the big guys.
  - Galanwe 2y ago
    Usually the way it works is that when you hold a sensible position, you are flagged by your company. When you trade, your broker reports these trades to your company through KYC matching. This all gets summarized and sent to the local regulator, which performs automated fraud detection.
  - ryandrake 2y ago
    > I mean: it is amazing that they got him to me. But I find it also, in a way, quite spooky. Yea it is spooky and chilling, and it would make me think twice about playing the stock market roulette wheel (not that I need more reasons to avoid gambling). Say I’m just a normal mild mannered, middle aged investor with a basic 401k making 7% a year. I suddenly get a windfall bonus at work and figure I’ll use this “play money” to yolo into OTM GME options or something. Should I now be worried that the SEC is watching my ass? If I luck into 10Xing that bonus, am I going to have to prove my innocence to the SEC?
    - JumpCrisscross 2y ago
      > I suddenly get a windfall bonus at work and figure I’ll use this “play money” to yolo into OTM GME options or something. Should I now be worried that the SEC is watching my ass? They’ll flag the transaction and then look further. If this was your first YOLO, you may have some questions to answer. But the SEC can’t put you in jail. And they have to show how you got MNPI. TL; DR Unless you’ve been kissed by an angel, your law-enforcement cross section driving on a public road eclipses that with the SEC.

JumpCrisscross 2y ago

> How comes the SEC can even find something like that? It’s automated. You look for high-entropy trades after receiving the filing announcing the corporate event.

TacticalCoder 2y ago
> It’s automated. You look for high-entropy trades after receiving the filing announcing the corporate event. So they find these dubious trades and then check the trader's trading history and personal wealth? Stuff like that? Basically the trade is automatically flagged and then they notice, for example, that the dude hardly ever trades, never traded that stock, isn't familiar with $120K wins on a trade, etc.? And if it all ticks, they then check which company he works for and it there's a relation with the company he traded? I mean: it is amazing that they got him to me. But I find it also, in a way, quite spooky. There's definitely a vibe in the comments in this thread, including from mine, about "going after the little guys".
- JumpCrisscross 2y ago
  > they find these dubious trades and then check the trader's trading history and personal wealth? History and employment, as well as spouses’. > isn't familiar with $120K wins on a trade, etc. Most insider traders don’t make that much. There used to be a site where it showed you some insider information, and you tried to guess what the stock did the next day. > a vibe in the comments in this thread, including from mine, about "going after the little guys" SEC goes after anyone who insider trades. DoJ tends to only prosecute the big guys.
- Galanwe 2y ago
  Usually the way it works is that when you hold a sensible position, you are flagged by your company. When you trade, your broker reports these trades to your company through KYC matching. This all gets summarized and sent to the local regulator, which performs automated fraud detection.
- ryandrake 2y ago
  > I mean: it is amazing that they got him to me. But I find it also, in a way, quite spooky. Yea it is spooky and chilling, and it would make me think twice about playing the stock market roulette wheel (not that I need more reasons to avoid gambling). Say I’m just a normal mild mannered, middle aged investor with a basic 401k making 7% a year. I suddenly get a windfall bonus at work and figure I’ll use this “play money” to yolo into OTM GME options or something. Should I now be worried that the SEC is watching my ass? If I luck into 10Xing that bonus, am I going to have to prove my innocence to the SEC?
  - JumpCrisscross 2y ago
    > I suddenly get a windfall bonus at work and figure I’ll use this “play money” to yolo into OTM GME options or something. Should I now be worried that the SEC is watching my ass? They’ll flag the transaction and then look further. If this was your first YOLO, you may have some questions to answer. But the SEC can’t put you in jail. And they have to show how you got MNPI. TL; DR Unless you’ve been kissed by an angel, your law-enforcement cross section driving on a public road eclipses that with the SEC.