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A comment on Three Equifax Managers Sold Stock Before Cyber Hack Was Revealed. Parent comment

Re:Three Equifax Managers Sold Stock Before Cyber Hack Was R... by fr0sty on Friday September 08, 2017 @09:50AM (#15200097)
Someone bought 2500 put options. Each option gives the owner the ability to sell 100 shares at the strike price of the option.

If whoever owns those options exercises them today (And covers their short position at a price of $125) they will make ~$2.5m on a ~$200k bet.

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Re:Three Equifax Managers Sold Stock Before Cyber Hack Was R... by mathattack on Friday September 08, 2017 @12:00PM (#15201301)
Exactly - it's the most "efficient" way to make money if you have inside information, because you only have to put a small amount of money down on the option relative to the payoff.

This is why the options market is the first place regulators look on insider trading.

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