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Insider trade on Splunk acquisition?

(twitter.com)
417 points mkmk | 1 comments | 21 Sep 23 15:58 UTC | HN request time: 0.428s | source
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bryan0 ◴[21 Sep 23 17:23 UTC] No.37600873[source]▶
Can someone explain the mechanics of this specific trade to a noob? The trader bought 550k options yesterday for SPLK to hit $127/share? Since that seemed highly unlikely they were only priced at $.04 each. but now that SPLK is at $145/share they are worth $18 each? so that would be a profit of ~$10m?
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mrb ◴[21 Sep 23 19:42 UTC] No.37603104[source]▶
Important note: he didn't buy 550k options, he bought 26k, for a total profit of $475k. The tweet is incorrect. See https://news.ycombinator.com/item?id=37602079
replies(1): >>37605230 #
vGPU ◴[21 Sep 23 22:21 UTC] No.37605230[source]▶
No. He bought 260 options, which translate into the right, but not the obligation to purchase 26k shares at a certain price.

260 options is WSB lotto territory. At $4 each, that’s a thousand dollar bet. We’re not exactly talking big money here.

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1. vGPU ◴[21 Sep 23 23:43 UTC] No.37605982[source]▶
In fact, I was right. It was a WSB lotto trade. Guy is just a regular WSB trader who has made multiple trades on this ticker in the past.