Insider trade on Splunk acquisition?

The screenshots demonstrate the trader purchased only $1,040 worth of options, not "$22,000" as claimed in the tweet. So the trader turned $1k into $475k.

See the first photo in the tweet, the top left chart (45-day volume on the SPLK 127 C 09/22/2023 options) shows a volume of about 260 options was bought. The second photo confirms a volume of 260 (see "volume" column, first row).

Options are for 100 shares. So 260 options times 100 shares times $0.04 equals $1,040. Meaning the insider trader turned $1,040 into $475,000.

(Edited my math - an option is $4 as it's for 100 shares - thanks pc86.)

The price of the option is per share. So a $.04 option costs $4 to purchase because it is an option to purchase 100 shares.

Oh right! I edited my math. Thanks :)

This is correct. I can independently verify that there are a total of 420 contracts of open interest, and this tweet is fake news.

Thank you. I am shocked everyone blindly trusts the "$22,000" amount without actually reading the screenshots.

And the 260 shares could as far as we know have been bought by several different people, correct? It's just the total volume for the day, traded in several dozen clips.

I don't have the time and sales in front of me to see the exact fact pattern, but yes, that it's a possibility. It's also possible these options were a part of a spread. That is, this trader sold other calls that lost a lot of money at the same time they bought these ones.