NW-Bound
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Jul 3, 2008
- Messages
- 35,712
I would not do it, concentrate on one stock, unless I was employed at the company and able to watch daily operations.
However implementing a buy/sell transaction with such info is called "insider information"
I knew a guy who did that. This was in around 1997. It was a very large semiconductor firm, and he said that the analysts' call on the next quarter earnings was wrong as he saw the orders coming in. So, he put down a 6-figure sum on some options and turned it into a 7 figure in a few months. It is normally hard to buy that many option contracts on the market, but this being a very large company with high trading volumes in both stocks and options, he was able to do that.
The SEC occasionally goes after insider traders, but in this case I wondered if it applied. He was not a high-level employee, and certainly not in upper management. Supposedly, an astute truck driver making delivery runs to the company could have noticed the surge in orders too.
Anyway, soon after winning that big amount, he apparently developed an attitude and could no longer work there or was asked to leave, so he took ER. He was only in the early 40s.
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