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Tag: Interactive Brokers

Red Flags for Insider Trading

Doug Cornelius June 10, 2013June 7, 2013 Insider Trading   2

Badin Rungruangnavarat was very lucky. He invested a bunch of cash from May 21 to May 28. When the market closed on May 29 he had unrealized gains of over $3 million and had achieved a return in excess of 3000%. Now he is unlucky because the Securities and Exchange Commission froze his investment gain … Read more »

Smells Like Insider Trading

Doug Cornelius April 10, 2012April 10, 2012 Insider Trading   1

Apparently Blue Horseshoe loved Zhongpin Inc., a China-based pork processor whose shares trade in the U.S. The SEC jumped on the accounts of six Chinese citizens and a British Virgin Islands entity. (Apparently the Chinese prefer to use British Virgin Islands entities. It’s the second largest investor in China after Hong Kong.) The facts stink … Read more »

When Red Flags Are Not Enough

Doug Cornelius January 4, 2012December 30, 2011 Insider Trading   2

Purchase out of the money call options set to expire in two weeks, do not have any activity on that stock before, exclusively use options when you have rarely traded options in the account before, purchase those options just before the announcement of the company’s acquisition, and then quickly try to move the money off-shore. … Read more »

How to Get Caught Insider Trading

Doug Cornelius August 26, 2010August 26, 2010 Insider Trading   5

Purchase out of the money call options set to expire in two weeks, be an employee of the company acting as an adviser in the merger, not have any activity on that stock before, use an account in your name, exclusively use option when you have barely traded options in the account before, and quickly … Read more »

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