Making bank with corruption
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Gunnerguy
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So PANW currently trades at $300.
She bought $200 calls for January 2025.
In buying she obviously spent money (not sure the cost of the call options) - lets say $10.
To make a profit then PANW has to drop below $190 by January 2025 (or if the implied volatility is very high at the moment it has to fall a lot).
So she thinks PANW will drop 30% by Jan 2025 ???
The last time it was at $200 was May 2023.
A big call
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I think you are describing put options.
if she bought calls, that gives her the right to sell at $200
Gunnerguy
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Yep you got me there ......
But those calls would have cost a fortune and would still need a big drop in the SP
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is the story even real?
I have seen so many beat up stories spread about political leaders involved in corruption.
just yesterday I watched a you tube video claiming Obama must be corrupt because he was worth $1 before he became president and is worth $70 Million now. The claim was that he only earned $150,000 a year so must have got the money via corruption.
It took me about 3 minutes to find out that him and his wife have released multiple best selling books since becoming president, and if they just made $5 a book they would have over $70 M. And that’s ignoring $400,000 per event speaking fees, investment returns, etc etc
It's already literally everywhere.
She bought 12th and 21st of Feb.
Did you not follow the nvidia trade?
What exactly do you call it if not insider trading?
Buying call options mean she can buy at $200
If you write call options you sell at $200
Puts are the opposite of the above.
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I don’t follow her portfolio.
but if the article is correct and she has purchased calls, isn’t she losing money on it right now?
Value Collector
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Oh yeah, that’s what I meant.
but she only makes money when the stock rises, and hasn't it gone down?
Massively but they are out to jan 2025. She bought more on the drop so she must be convinced it's a good bet.
Obviously something happening between now and then (similar to nvidia). I think there was a government contract. Be interesting to see.
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So where is the corruption?
Insider knowledge then trading on that.
I'm not here to split hairs. I'm here to profit.
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But aren’t you just guessing that she must know something? She and her husband are already super wealthy I doubt she would risk her position or jail time insider trading. Do we even know if this trade is from her and not just some one running things at her family office.
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Obama a former 'civil rights lawyer/successful Presidential candidate , with one dollar personal wealth .. as VP Joe would have said 'c'mon man '
a successful Presidential candidate would have to be worth at least $200k just for all the travel/fund-raising to score the Oval Office
the corruption ? well you will have to research that yourself , maybe Joe did all that to get the VP gig
If you are a public official that is privy to government information, can legislate favourably and are profiting by millions on each trade. The problem is Congress members and their families will often trade on privileged information and insider trading is hard to prove. But prior to about 2012 I'm sure they were allowed to insider trade. They rorted it so much that it had to be changed. It was actually dubbed the "Pelosi Provision"
https://www.cbsnews.com/sanfrancisc...er-pelosi-traded-stock-on-inside-information/
Her one year returns for her stocks is 45.59%, and her option returns are 66.7%. This stocks and options is 56.15%. S&P (June last year i think)
Breakdown of US members trading.
Sen. Kelly Loeffler sold at least $18 million more in stocks before the coronavirus crash than previously reported
Loeffler is one of many lawmakers under fire for suspicious stock-trading activity following a coronavirus intel briefing.https://www.vox.com/policy-and-poli...lly-loeffler-stock-sales-coronavirus-pandemic
Now the above story was all about timing. If the information is traded off a closed door session then its "insider trading". But if you wait till contracts become public record then you are home free. But the rub is that being in Congress allows you the full spectrum of information to make trades you probably shouldn't be allowed to make and enough influence to sway it in your favour.
Like I said I don't care what you call it. I'll rename the thread to "making bank with moonbeams" so long as I then don't have to discuss and dissect lunar cycles.
It's about getting the information as early as possible so I catch the ramp.
It's about getting the information as early as possible so I catch the ramp.
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well members of the US Fed. were previously buying/selling shares ( and other stuff ) shortly before major announcements
did members of the Congress and Senate succumb to the same temptation , trading activities suggest some did ( and made a handy profit )
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having your buy/sell order early in the queue can be a nice advantage
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