ES Journal - 2019/2020

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ElCubano said:
EMLX. College student FAXED a fake press realease to CNBC, like year 2000 some time. Stock halted gap down then super rip up super. To the tune of $400k up from a trader I know. I think they eventually got the suspect.
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Interesting story. The kid was short 3000 shares from the $72-$92 and the stock kept climbing higher, all the way to $113. He cooked up the phony press release to bail him out of very bad trade.

https://www.cnet.com/news/23-year-old-arrested-in-emulex-hoax/
 
Gaslight Capital said:
Imagine he had bought TSLA puts and then used Elon Musk's account to tweet "The numbers are all fake. TSLA to file Bankruptcy."
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It would be impossible to take advantage of this. Your brokerage account is clearly in your name and the SEC would be all over it. In fact, any large payout like this that appears to be a lottery ticket is I'm sure heavily investigated. If the trader is used to making bets like this then fine, but a one-off would an obvious sign of something being up.

Even if you prepared by making a bunch of traders in weeks and months leading up to this, the sheer fact that this would end up being a big payout for you would lead to an investigation. Even if you played dumb by buying Puts that went bust for weeks leading up to this would still raise alarms since you would clearly ensure that your one win is bigger than all your losses combined. The last thing you would want to do is have your name on a watch list.
 
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