Fed takes boldest action since the Depression to rescue US mortgage industry

#30
#30
Vol423 said:
There's no such thing as "legal insider trading". If the person had insider information, then the trade was illegal. If he didn't, then the trade is legal.
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Negative. There are loopholes throughout SEC Regulations. Unethical...maybe. Illegal...no.
 
#31
#31
therealUT said:
Negative. There are loopholes throughout SEC Regulations. Unethical...maybe. Illegal...no.
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Unethical...yes. Illegal...yes, unless the insider had previously initiated a scheduled trading program as allowed by SEC regulations. Those programs lock an insider into scheduled purchases or sales long in advance of the trading date (which would prevent the possibility of insider trading).

There are not loopholes throughout SEC regulations.
 
#32
#32
Vol423 said:
There's no such thing as "legal insider trading". If the person had insider information, then the trade was illegal. If he didn't, then the trade is legal.
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thank you for the legal lesson. he still had insider information, acted upon it, made a fortune and will not be prosecuted for his "astute" transactions.

A one week bet that large on a put so far out of the money is absolutely stupid in the absence of information unavailable to the rest of the street. Had the information been available to the street, the arbitrage opportunity would not have existed. He made his money when the market priced in the information a day later.

I suspect the market for those puts didn't exist prior to his putting a contract out there. Absent information, it looked like a steal for the seller of those puts. Unfortunately, that seller was likely out several million dollars early today.
 
#33
#33
BigPapaVol said:
thank you for the legal lesson. he still had insider information, acted upon it, made a fortune and will not be prosecuted for his "astute" transactions.

A one week bet that large on a put so far out of the money is absolutely stupid in the absence of information unavailable to the rest of the street. Had the information been available to the street, the arbitrage opportunity would not have existed. He made his money when the market priced in the information a day later.

I suspect the market for those puts didn't exist prior to his putting a contract out there. Absent information, it looked like a steal for the seller of those puts. Unfortunately, that seller was likely out several million dollars early today.
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Who are you even talking about? I haven't seen the story to which you're referring, and the previous reference in this post was to "someone" buying puts.
 
#34
#34
VolsNSkinsFan said:
Bear Sterns almost went bankrupt over night due to margin calls, but the NY fed and JP Morgan are going to bail them out. Whats funny is that the CEO of BSC said that everything is fine two days ago on CNBC. Liar

Bear Stearns Bailed Out by Fed, JPMorgan: Financial News - Yahoo! Finance

Some one bought 55,000 BSC Puts with a strike price at $30 when it was trading at $65 last week. Also these puts would have expired worthless on March 20th if the stock didnt move down. Today the stock is down 40% Someones crazy bet is paying off huge! The options are up 1000% today.

So 55,000 x 50 cents (per option for 100 shares)= $2.75 million bet and now its worth 55000 x $5.50 (per option for 100 shares)= over $30 million. WOW at least someone is making $$ in this market.
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I've had friends give me several good methods for buying options and making money.

But it seems too risky. Unless you've got money that you can afford to lose and are buying stocks that you really like, and dont mind holding as an investment for the long term, I wouldn't get involved in option trading.

The potential of options to earn and lose money is staggering though.
 
#35
#35
Vol423 said:
Who are you even talking about? I haven't seen the story to which you're referring, and the previous reference in this post was to "someone" buying puts.
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I don't care how many stories you've read. I'm saying the buyer made his purchase based upon insider info. That "someone" wasn't the insider, but got the info from one in order to make such an outlandish purchase. I called it legal because he will be lightly investigated, but unprosecuted. If you'll recall, that's when you jumped in with the securities law lesson.

FYI, your basic brokerage newbie hawking securities to retiree types has his series 7 securities license. Even he understands the insider trading law.
 
#36
#36
BigPapaVol said:
I don't care how many stories you've read. I'm saying the buyer made his purchase based upon insider info. That "someone" wasn't the insider, but got the info from one in order to make such an outlandish purchase. I called it legal because he will be lightly investigated, but unprosecuted. If you'll recall, that's when you jumped in with the securities law lesson.

FYI, your basic brokerage newbie hawking securities to retiree types has his series 7 securities license. Even he understands the insider trading law.
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You said, "that's a pretty good example of legal insider trading." Insider trading is NOT legal. The fact that this guy probably won't be prosecuted doesn't make the transaction legal if he had insider information. It just means that they couldn't find enough proof to prosecute him.

I guess in your world it's legal to rob a bank as long as you don't get caught.
 
#38
#38
Vol423 said:
You said, "that's a pretty good example of legal insider trading." Insider trading is NOT legal. The fact that this guy probably won't be prosecuted doesn't make the transaction legal if he had insider information. It just means that they couldn't find enough proof to prosecute him.

I guess in your world it's legal to rob a bank as long as you don't get caught.
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Being literal about my comment is making you appear to be ridiculous, which I don't think is actually the case. If you're assuming that I need the securities law education, don't. I'm aware.

If you want to take this to an absurd end, the first non-insider aware of otherwise insider info who makes a trade based upon the advantage of that info is technically insider trading. Is that illegal? Maybe he should await broadly cast news of the info prior to executing a trade so he can live up to your expectations.
 
#39
#39
Vol423 said:
You said, "that's a pretty good example of legal insider trading." Insider trading is NOT legal. The fact that this guy probably won't be prosecuted doesn't make the transaction legal if he had insider information. It just means that they couldn't find enough proof to prosecute him.

I guess in your world it's legal to rob a bank as long as you don't get caught.
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Dude... :no:
 
#40
#40
hedge funds and stuff act on inside knowledge all the time. they just don't get prosecuted for it. also for some reason it's not illegal to buy bonds on inside info.
 
#41
#41
oklavol said:
I've had friends give me several good methods for buying options and making money.

But it seems too risky. Unless you've got money that you can afford to lose and are buying stocks that you really like, and dont mind holding as an investment for the long term, I wouldn't get involved in option trading.

The potential of options to earn and lose money is staggering though.
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very few people regurally make money trading options.
 
#47
#47
Folks told me @ $700 for gold to sell, I thought they were crazy. I think $1,000 gold is starting to push it. I sold a 1/2 of my postion in gold @ $1,010 this AM. holding on to the rest to play with (FREE $$). Oil is done I think, I wouldn't buy any, but if the $ doesn't start going up, gold might keep going up. Just trying to play it safe these days.
 
#48
#48
gold is a pure speculation play. it has zero economic value outside of jewery. sell the whole thing. my $.02 :dunno: tommorow i'll wake up and it's $2,000 :)
 
#49
#49
LOL Droski, that would be my luck also. That's why im keeping half of my postion, but if it dips below $902. It's sold. :)
 
#50
#50
Might even take a small, very small postion in LEH just to see if I could get a bounce and make a few hundred tomorrow, with all the crazy crap that is going on today.
 
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