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Insider trade on Splunk acquisition?

(twitter.com)
417 points mkmk | 2 comments | 21 Sep 23 15:58 UTC | HN request time: 0s | source
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scarmig ◴[21 Sep 23 16:51 UTC] No.37600401[source]▶
Go directly to jail, do not pass go, do not collect $10M.
replies(3): >>37600415 #>>37600568 #>>37600880 #
zht ◴[21 Sep 23 17:02 UTC] No.37600568[source]▶
isn't it closer to 400k?
replies(4): >>37600616 #>>37600617 #>>37600633 #>>37602290 #
mrjaeger ◴[21 Sep 23 17:06 UTC] No.37600617[source]▶
I think $10M is right. The options cost $0.04 each yesterday (per the tweet), so spending $22,000 would get you 550000 options. Those options are now worth $18.30 (per the tweet) for a total value of ~$10M.
replies(2): >>37600733 #>>37602470 #
1. quickthrowman ◴[21 Sep 23 17:13 UTC] No.37600733[source]▶
An option contract with an ask of $0.04 costs $4. The trader bought 5500 options for $4 and they’re now worth $1830, so it’s still a $10M profit.

The listed option price is the price per share, and a standard option contract is 100 shares of exposure.

replies(1): >>37602267 #
2. mrb ◴[21 Sep 23 18:54 UTC] No.37602267[source]▶
No, the trader bought 260 options. See second photo in the tweet, first row, column "volume". 260 options times $4 equals $1,040 invested, which turned into $475k.