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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: 0.509s | source
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mrb ◴[21 Sep 23 18:41 UTC] No.37602079[source]▶
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.)

replies(3): >>37602140 #>>37602885 #>>37612432 #
1. pc86 ◴[21 Sep 23 18:45 UTC] No.37602140[source]▶
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.
replies(1): >>37602202 #
2. mrb ◴[21 Sep 23 18:50 UTC] No.37602202[source]▶
Oh right! I edited my math. Thanks :)