Edwin Brett
JD Long ✅New insider trading question coming to your compliance quiz soon:
as others have pointed out in this thread, the wonderful Matt Levine covered the "blown door trade" in his newsletter today. In short see image. In long, read article: https://www.bloomberg.com/opinion/articles/2024-01-10/the-sec-got-trolled-on-bitcoin-etfs?srnd=undefined
Barry Rowlingson@Cmastication I'd take out life insurance on myself.
@geospacedman this is why there's always a waiting period on life insurance :)
Ed Goodwin@Cmastication the very definition of doing your own research on a company!
Chris Ferdinandi@Cmastication it’s not because that’s public information.
@cferdinandi but it has not yet been "ingested"... which is a fairly gray area of securities law :)
not that anyone would actually enforce that in this situation. not a chance.
@Cmastication hmm. Fair point. Observing something in a public setting feels very different than having privileged information by excavation of your role or relationship.
number137@cferdinandi @Cmastication OTOH the door is public (in someone's backyard) 🤔
Falcon Darkstar@Cmastication lol! Imagine airplane safety incidents moved the market enough to justify research firms planting a spy on each flight to get the news first. Clearly not insider trading. You are the spy. Go.
@falcon a very special type of ambulance chasing😬
Michaela Sue@Cmastication The two kinds of investors:
1) put your money in an index fund and never think about it
2) this guy
1) put your money in an index fund and never think about it
2) this guy
mypalmike@Cmastication Funny enough, Boeing was up around 2% the day after the incident.
(My conspiracy theory: Market manipulation by the big trading firms after headlines like this. They push the price up and profit on early bird short interest, then profit again by going short at the peak.)
Michael Wyman@Cmastication not your corporate compliance; it’ll soon be included in the onboard safety lecture before the plane takes off.
Paper Moon@Cmastication regardless of whether the market is pricing it up or not, if it's public knowledge then you are fine to put your sell orders.
@TazPoltorak there’s a lot of grey area around what’s “public knowledge”
But no way the SEC would come after a trader in this scenario. Bad optics.
Guillaume Rossolini@Cmastication out of curiosity, why would you buy any kind of shares before their value is most likely to go down?
@GuillaumeRossolini “puts” are options that increase in value if the underlying stock decreases in value.
Seiðr@Cmastication Well, if you are <not> sucked by the decompression, it keeps being inside, so…
~n@Cmastication Technically this is not insider trading but wireless fraud.
@nblr I see what you did there. I approve.
Tobias Fiebig@nblr @Cmastication No matter what it is, the option already went out of the door.
BeeCycling has moved@Cmastication Love how these bros think they'd be able to stay chill and do this in that situation, and not be screaming and pissing their pants like everyone else on the plane.
@Cmastication I like that last line though, Made me chuckle. 😁
Sir David Nielsen@Cmastication the plane experiencing issues has to be public information, considering that you are seated amongst a couple hundred screaming members of the public. Short that shit, short it like there is no tomorrow.
Robin Syl 🌸
@Cmastication trading ain't gonna do shit if you died
ash 
@Cmastication (probably not? My understanding is in the US at least having nonpublic information is a necessary but not sufficient condition; how you came by said information is also relevant)
@Cmastication it appears Matt Levine has already beat us to answering that question yesterday, btw: https://www.bloomberg.com/opinion/articles/2024-01-10/the-sec-got-trolled-on-bitcoin-etfs
@darkphoenix we don’t deserve Matt Levine. A damn national treasure.
davel 🚫@Cmastication Topologically speaking the plane no longer had an inside from which to trade. Q.E.D.
Moffin'tosh