Volume seems to arrive before the news does. (Insider trading)

It's rampant.

Case in point PLUGD they diluted shares someone knew this information beforehand and it was down 40%? two days before the news came out.

If that isn't Insider trading I don't know what is.
 
Impossible to completely stop.

All you can do is make life very hard for those dumb or greedy enough to get caught,
 
Quote from Hook N. Sinker:

"a new and alarming finance study finds spikes in options trading ahead of breaking news"
More...

i first heard of the term breaking news on bloomberg and wtf who came up with a word like that news thats breaking
 
A provocative new academic study suggests the government should scrutinize options trading for hints of insider trading. Volume seems to arrive before the news does.
---------------------

Okay....

Now lets see the study of open interest and volume spikes when nothing happened.

OR

How about we check trading records of people employed by the FDA. Lets start there. How about transparency in gov't. (Yuk yuk).:cool:

-----------------

The SEC employs lawyers.

Professors employ the mental horsepower of their students.

Hmnnn.. lets ask how many members of congress trade options.
 
The article is retarded. Options trading can spike on anticipated volatility which could be due to as little as a rumor that there might be news in some time frame. That's not material information or insider trading.
 
Quote from The Big D:

The article is retarded. Options trading can spike on anticipated volatility which could be due to as little as a rumor that there might be news in some time frame. That's not material information or insider trading.
More...

You are wrong

What the article argues and questions is that; howcome everytime there is a breaking news, the volume in the options market increases before the news even hit the media.

It is so obvious that some people know about the news before it hits the street. Simple as that.
 
You must log in or register to reply here.
Back
Top