is this insider trading?

trend2009 said:
Suppose I have a friend working for a biotech company which has a drug on clinical trial. My friend DOES NOT know if the result will be good or bad, but he knows when the result will be announced. when the result is announced, either the result is good or bad, its stock price will change dramatically. so if I buy call and put option of the stock before the result is announced, no matter the result, i will surely make a profit on one side. is that an insider-trading?
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Don't give anything to your friend in return for this "tip", and you're alright.
 
I was looking at past cases

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The SEC adopted new Rules 10b5-1 and 10b5-2 to resolve two insider trading issues where the courts have disagreed. Rule 10b5-1 provides that a person trades on the basis of material nonpublic information if a trader is "aware" of the material nonpublic information when making the purchase or sale. The rule also sets forth several affirmative defenses or exceptions to liability. The rule permits persons to trade in certain specified circumstances where it is clear that the information they are aware of is not a factor in the decision to trade, such as pursuant to a pre-existing plan, contract, or instruction that was made in good faith.

Rule 10b5-2 clarifies how the misappropriation theory applies to certain non-business relationships. This rule provides that a person receiving confidential information under circumstances specified in the rule would owe a duty of trust or confidence and thus could be liable under the misappropriation theory.
 
There was some documentary about insider trading where "market analyst" called expensive hotline of some firms that specialized in connecting callers to employees of comapanys listed on stock market. Also it included interesting call recordings.
 
Check out their website and see if they have made any remarks about any clinical trial decisions. They often push this information on their site if they have a definite date.

I have seen sites that list scheduled announcements from the government but I never bookmarked them.


Maybe it's here.......
http://www.rttnews.com/CorpInfo/FDACalendar.aspx



BTW, if it was Tobira Therapeutics (TBRA) you are a day late. It was up 720% today rising from 4.74 to 38.91.

https://finance.yahoo.com/quote/TBRA?p=TBRA

https://finance.yahoo.com/news/allergan-just-acquired-two-companies-203740540.html
 
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These things are always interesting. I think that is why being connected to other parts of the industry is so important. A casual conversation with a friend working for SBUX head office mentioned that they were "really pushing 'red cups' this year" (winter 2015) as sales had been so poor. This made me think about how it would impact upcoming quarterly reports but of course I took no action on it for all the obvious reasons.

One thing I did think about though was what constitutes 'public information' in the classification of insider knowledge. If you posted the info to some random blogs and tweeted major news wires from an unknown twitter account then technically that information is available to all. Could you then make your trade?
 
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