←back to thread

Insider trade on Splunk acquisition?

(twitter.com)
417 points mkmk | 3 comments | 21 Sep 23 15:58 UTC | HN request time: 0.201s | source
Show context
xyzelement ◴[21 Sep 23 16:54 UTC] No.37600439[source]▶
I don't know if this is genuinely suspicious or not. Is buying 20K of options an unusual thing? Or is this something that happens regularly with options expiring worthless or with a small gain - and it just happened to hit big this time?

IE "someone bought a lottery ticket and won" - interesting to know if they play the lottery every other day (and don't usually win?)

replies(3): >>37600544 #>>37600565 #>>37600948 #
vkou ◴[21 Sep 23 17:27 UTC] No.37600948[source]▶
Buying 20k of options when there's a 99.99% chance of them being worth $0 is pretty unusual, unless you're actively regularly trading in the millions.
replies(3): >>37601235 #>>37602842 #>>37603046 #
xyzelement ◴[21 Sep 23 17:45 UTC] No.37601235[source]▶
// unless you're actively regularly trading in the millions.

A lot of people/organizations bet in the millions.

replies(1): >>37601294 #
1. vkou ◴[21 Sep 23 17:48 UTC] No.37601294[source]▶
Sure, and the SEC investigation will probably figure out if this is one of a thousand daily trades that got placed by the beneficiary, or if he opened a trading account last week, and this is the first time he's buying options.
replies(2): >>37601729 #>>37601735 #
2. WJW ◴[21 Sep 23 18:21 UTC] No.37601729[source]▶
Even worse than opening a trading account last week: they've got a looooong history of doing nothing but the most boring buy-and-hold-index-funds investing you can imagine, until they suddenly bought 20k in lottery tickets that just happened to hit their one-in-a-billion chance to pay out.
3. xyzelement ◴[21 Sep 23 18:21 UTC] No.37601735[source]▶
That was the point of the post you originally replied to...