![]() "This looks like a 22-year-old kid who didn't know what they were doing," he said. There are ways to structure the bets that would make them less obvious to regulators, he said. The trades were so brazen - with some of the calls set to expire in just days - that whoever made them must be inexperienced, according to a former Wall Street executive with more than four decades of markets knowledge. Whoever bought those calls will probably face regulators." "When we see unusual activity like that, we tend to think that somebody had tomorrow's newspaper today," Najarian said. The contracts were mostly sold for a profit on Sept. 13, two days before the announcement, call volumes hit 12,755. 9, according to Jon Najarian, a veteran trader and CNBC contributor. Wagers in soon-to-be-profitable $10 call options surged over the last two weeks, however, indicating that it's possible multiple traders had knowledge of the deal. Options activity for GreenSky is typically muted, with fewer than 1,000 calls making up the average daily volume. 14 trades weren't the only unusually prescient bets made ahead of the Goldman deal. JPMorgan Chase and FT Partners advised GreenSky, which also used law firms Cravath, Swaine & Moore and Troutman Pepper Hamilton Sanders. Goldman was its own financial advisor and used Sullivan & Cromwell as legal counsel. The Securities and Exchange Commission and the Financial Industry Regulatory Authority didn't immediately return calls seeking comment. Goldman Sachs and GreenSky declined to comment for this article. As many as one-quarter of all public company deals result in some form of insider trading, often involving out-of-the-money calls in the options market, according to a 2014 academic study.Īlthough there have been insider-trading cases ensnaring high-profile perpetrators, instances in which people used material, nonpublic information in the markets, most times the activity goes unpunished, according to the 2014 study by professors at the Stern School of Business at New York University and McGill University. With that many sets of eyes on a deal, information often leaks. That means a $40,000 bet would have turned into about $1.6 million.Īcquisitions are complicated transactions involving teams of bankers, lawyers and other specialists with access to market-moving information. The trader made an astounding 3,900% gain in a single day on contracts expiring Sept. Personal Loans for 670 Credit Score or LowerĪfter news of the deal hit, the value of the contracts, each allowing for the purchase of 100 shares of GreenSky, skyrocketed. Personal Loans for 580 Credit Score or Lower I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this research report.įor Brian Kelly Kelly is short euro Kelly is long FXE puts with wires.Best Debt Consolidation Loans for Bad Credit Squali, certify that all of the views expressed in this research report accurately reflect my personal views about the subject security(ies) and subject company(ies). Najarian is long CIGX Edwards is long TQNT Edwards is long XLK Grasso owns AA Grasso owns AKS Grasso owns ASTM Grasso owns BA Grasso owns BAC Grasso owns BAS Grasso owns D Grasso owns LIT Grasso owns MHY Grasso owns PFE Grasso owns PRST Grasso owns S Grasso owns XLUįrom Patty Edwards Trutina Financial owns Apple (AAPL) Trutina Financial owns Citigroup (C) Trutina Financial owns Google (GOOG) Trutina Financial owns Oracle (ORCL) Trutina Financial owns SPDR Gold Trust (GLD) Trutina Financial owns AAPL Trutina Financial owns TARGET (TGT) Trutina Financial owns AMZN Trutina Financial owns QCOM Trutina Financial owns SWNįor Tim Seymour Triogem Asset Management is long BBD Triogem Asset Management is long ITUB Triogem Asset Management is long SBRCYįor Youssef Squali I, Youssef H. Trader disclosure: On Oct 14, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders P. If you'd prefer to make a comment, but not have it published on our Web site, send those e-mails to. _ Got something to to say? Send us an e-mail at and your comment might be posted on the Rapid Recap. ![]() MONEY IN MOTION: EURO The euro looks to be back on track for its biggest weekly gain since January on renewed hopes for a European resolution ahead of the big G20 meeting. Personal Loans for 670 Credit Score or Lower ![]() Best Debt Consolidation Loans for Bad Credit ![]()
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