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Trading volume in Leap Wireless (LEAP) options leapt to 7,139 contracts vs an average of 1,320...

Trading volume in Leap Wireless (LEAP) options leapt to 7,139 contracts vs an average of 1,320 contracts on Friday prior to the announcement that AT&T (T) has agreed to acquire the smaller carrier for $1.18B. The call-to-put ratio  was 20-1. "It appears that prior knowledge of this takeover may have been leaked and traded on," says options analyst Ophir Gottlieb. The authorities are pretty good at identifying the people who carry out these trades, including with deals involving Onyx Pharmaceuticals and Heinz.
Comments (9)
  • Ray Merola
    , contributor
    Comments (3080) | Send Message
     
    The SEC should emphasize and publicize findings, if any, uncovering Wall Street or other investor shenanigans. Acting on advance trading info dilutes small investor confidence. It has a corrosive effect that promotes the notion that the markets are a mugs' game; that it's stacked against the little guy.
    14 Jul 2013, 09:34 AM Reply Like
  • deercreekvols
    , contributor
    Comments (5142) | Send Message
     
    The ball is clearly in the SEC's court on this one. The numbers don't lie. People were trading before the deal was made "official."

     

    Will the SEC look the other way? Will the SEC enforce the laws?

     

    Rules are rules, except on Wall Street. Time for the SEC to change this culture and level the playing field for all investors.
    14 Jul 2013, 10:32 AM Reply Like
  • convoluted
    , contributor
    Comments (1829) | Send Message
     
    Hold your horses-the SEC is currently working on writing the final rules to allow hedge fund advertising to the masses (or rather to the 'accredited' masses)- this will create more employment opportunities for web designers and folks like vistaprint.
    I'm thinking about combining a hedge fund with a restaurant. What about "LeRoy's Hedge Fund and Carolina BBQ"-free BBQ with a $100,000 investment-got to be accredited though.
    14 Jul 2013, 11:22 AM Reply Like
  • Fear & Greed Trader
    , contributor
    Comments (4532) | Send Message
     
    convoluted,

     

    Points well taken, SEC is just -- well ---- impotent.. They put on a good show , when it comes time to act ... we all know the rest..

     

    14 Jul 2013, 05:51 PM Reply Like
  • vireoman
    , contributor
    Comments (864) | Send Message
     
    Nothing unique about this. Every governmental agency has a political appointee at the top, and is thus eminently vulnerable to political influence/pressure, which is especially dependent upon which party is currently in power. Since when have the "rules are rules" criterion been the only consideration when it comes to applying laws and assessing penalties?
    14 Jul 2013, 09:00 PM Reply Like
  • Mattster
    , contributor
    Comments (162) | Send Message
     
    I understand insider trading is always there but the amount of greed and piggishness shown here is nothing less than a big middle finger at the SEC and all governmental authority. If insider traders are able to break the rule of law so easily and without any repercussions then nothing less than the future and power of American sovereignty is put into question. SEC needs to show that the American government is still in control of its jurisdictions or other, far worse, challenges towards American power will materialize in the near future.
    14 Jul 2013, 11:40 AM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    With information "shared" or traded in many closed circles insider trading will be a challenge to curb. Another option is to make it legal and let the market deal with that dynamic.
    14 Jul 2013, 06:03 PM Reply Like
  • tradewin
    , contributor
    Comments (658) | Send Message
     
    It's political at this point. The S.E.C. knows who made these trades. Now it is a matter of doing something about it.
    14 Jul 2013, 06:19 PM Reply Like
  • Deja Vu
    , contributor
    Comments (1153) | Send Message
     
    The July $9 options were selling for $0.09 making it a 90X return.
    15 Jul 2013, 08:01 AM Reply Like
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