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417 points mkmk | 1 comments | | HN request time: 0s | source
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xyzelement ◴[] 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?)

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trowawee ◴[] No.37600544[source]
"short-dated out-of-the-money call options that cash out a day after a merger/acquisition" is, like, the definition of a suspicious transaction. Somebody's gonna get a knock on the door from the SEC.
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mcast ◴[] No.37600594[source]
Maybe unless that person was a US senator/congressperson.
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mandevil ◴[] No.37600997[source]
This is false. Then-sitting Congressman Chris Collins (R-NY) pled guilty and was sentenced to 26 months in prison for insider-trading back in 2019-2020. He was pardoned by President Donald Trump as one of his last official acts as President, but Collins still spent 10 weeks in prison for insider-trading as a sitting congressman (this was for knowledge he gained outside of his duties as a congressman, it was knowledge he got as a member of the Board of a company).

Congresspersons separately aren't allowed to trade on things they learn from their job- that was banned in 2012 under the STOCK act.

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1. tootie ◴[] No.37602817[source]
And really, the stuff banned by the STOCK act is separate from insider trading which is why it needed a separate rule.