Dear SEC: For Your Viewing Pleasure - Obvious Perot Front Running

Tyler Durden's picture

Dearest SEC, since we know you are infrastructurally and intellectually challenged (in the broadest sense of the word), we have decided to make your life easier. As you likely are not aware, Dell today acquired Perot Systems (we imagine the companies used the attorney-client privilege to avoid disclosing any transaction details to you). All fine and good: here is the link to the 8K should you wish to familiarize yourself with the EDGAR filing system.

Yet something that you may want to consider in your 8 hour daily coffee breaks is the following. We present the option activity in Perot calls last week. Over 2,500 Oct $20 calls were purchased at about $1. The same option is now worth $9.60. The result: an approximately $2.2 million profit in the four days since the accumulation of the options started on September 15 by whoever the party(ies) that were tipped off about this deal. (We are ignoring the $17.50 strikes which also showed suspicious volume early in the month).

As we are well aware that you traditionally are in dire need of visualization aids, we present the charts that make this even more obvious.

And in order to completely connect the dots for you, here are the actual trades that if you care, you can actually dig into, and do some of the fabulous regulatorin' you are so adept at.

September 16th

September 18th

As always, please write us if you need any more calculators, abaci, pencils, erasers, graph paper or staplers to perform the activities that your $900 million budget ill affords you.