![]() It’s not definite they were bought by the same trader, but if there were it could have been part of a hedging strategy, and the losses from the puts could offset what the person stood to make on the so-called out-of-the-money call trade, suggesting who ever made the trade didn’t really know a deal was happening. It appears at the same time the LinkedIn call options were bought, put options were bought as well. Back in 2011, for example, unusual options trading preceded Hewlett-Packard’s purchase of 3Com, ultimately leading to insider trading charges against a hedge fund – Might want to look more closely, was part of an Iron Condor, and trade actually is down /I9QpYHYXRj If this is indeed a case of insider trading, it would hardly be the first time that options trading was the first giveaway. A more likely scenario, of course, is that someone in the market had an inkling of what was coming. Another red flag: All of the $175 call options were bought in the last five minutes of trading on Friday. They are now worth $569,100, a gain of 2176% in less than one trading day. Those same options are now worth just over $2 million, for a less than one trading day profit of nearly $1.9 million.Īlso on Friday, 300 options to buy LinkedIn shares at $175 were bought in four trades. Just how lucky? According to data from Bloomberg, 600 options to buy LinkedIn shares at $160 were bought in two trades on Friday afternoon for a total of $135,100. ![]() It is, of course, possible that last Friday’s buyer (or buyers?) simply had remarkably fortunate timing. ![]()
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