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This Is What A 8900% 1-Day Profit Looks Like

Tyler Durden's picture




 

When the lottery tickets are scattered around like this (and mal-investment concerns at record-low levels), is it any wonder the world and his mum is buying Biotech stock options, what could go wrong?

Having traded at $60 yesterday, Puma Biotech (PBYI) is trading at $235 after a successful Phase 3 study into breast cancer made it an attractive takeover target. It appears someone had been buying small odd lots of $100 calls in the last few days (dramatically out of the money) betting on just this.

 

And they just made 8900% on the trade...

 

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Wed, 07/23/2014 - 10:27 | 4992716 HFBondsTrader
HFBondsTrader's picture

awesome

Wed, 07/23/2014 - 10:28 | 4992727 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

No insider trading here. Move along.........

Wed, 07/23/2014 - 10:37 | 4992778 toady
toady's picture

Exactly. The only people who made money on that one had the inside track. A couple of insider tips like this one and I could jump into the billionaires club.

Wed, 07/23/2014 - 11:02 | 4992898 remain calm
remain calm's picture

Jelousy will get you no where No one is going to do anything about it. Why even report this stuff. I am happy for the bastard who made a ton of money. He/She hurt no one. Just move along and get on with your miserable life.

Wed, 07/23/2014 - 11:12 | 4992965 icanhasbailout
icanhasbailout's picture

There's always someone on the other side of the trade, so someone else lost all that money.

Wed, 07/23/2014 - 11:37 | 4993124 barre-de-rire
barre-de-rire's picture

since when WS players here care the fuck about the guy at the other end of the line...

shit i'm in a warp zone.

Wed, 07/23/2014 - 11:45 | 4993173 icanhasbailout
icanhasbailout's picture

oh ha silly me I thought the objection to all this mess was the dishonesty... turns out it's merely the vector, hoocoodanode?

Wed, 07/23/2014 - 12:18 | 4993310 power steering
power steering's picture

Nothing is more absurd than GoPro

Wed, 07/23/2014 - 12:55 | 4993657 kaa1016
kaa1016's picture

Nothing sinister here. There was event that was known coming out and given the fact that the stock was $143 in late January, buying the $100 calls which were north of $1.00 yesterday (on options that were $40 out of the money with a month to go) is someone taking a shot on a binary event. What's wrong with that?

Wed, 07/23/2014 - 11:40 | 4993135 teslaberry
teslaberry's picture

some assholes are concerned about the 'other guy on the side of the trade'. 

 

what a bunch of fucking morons. 

 

there is no 'one' who is hurt. 

 

the speculative opportunities like this exist AT LARGE,  ONLY BECAUSE OF EGREGIOUS MONEY PRINTING BY THE FED . 

 

THUS the american public , through savings confiscation renamed as 'inflation targeting' is footing the bill through higher costs of living and higher long run taxation to ensure wall street is well stocked with cash. 

the big bubble shoudlered by the public is the bond bubble anyways, so really, this stock market bubble, of which this one small security is just a pimmple on the ass of an 800 pound gorrilla when it comes to the 'public'. 

 

Wed, 07/23/2014 - 12:16 | 4993381 power steering
power steering's picture

Nothing is more absurd than GoPro

Thu, 07/24/2014 - 05:56 | 4997094 StandardDeviant
StandardDeviant's picture

Because of Fed money printing?  No.

Deep out-of-the-money calls and puts exist for all kinds of stocks, and have for decades.  Nothing new there.

And biotech stocks are particularly well known for binary events:  Did the trial work or not?  Did the new drug get approval or not?

As for others' concerns about the guy on the other end of the trade:  DOTM options are generally written (sold) by market makers or specialists, who maintain a book of options, are well aware of the risk of a large move, and hedge accordingly (either with stock or with other offsetting options).  Don't cry for them; it's all part of a day's business.

Wed, 07/23/2014 - 12:06 | 4993327 toady
toady's picture

Maybe it is a jealousy thing... it would be great to be in those insider shoes for just a few trades.

Then again, there's a little anger there too. Everyone knows the loss will be socialized to Johnny Taxpayer.

Wed, 07/23/2014 - 12:21 | 4993424 TheLooza
TheLooza's picture

If you were on the inside track in any auditable way, I think you'd be very excited and very nervous at the same time.  

Thu, 07/24/2014 - 09:02 | 4997430 StandardDeviant
StandardDeviant's picture

It won't be socialized.

First, look at the volumes on the bottom graph.  A nice day for someone, a bad day for the counterparties, but hardly systemic risk.

Second, options are cleared through the Options Clearing Corp., a central counterparty.  They and their members, mainly the brokerage firms, make sure everyone maintains sufficient margins, and they have a clearing fund in case a member firm goes broke.  (You can read about it here.)  Even the collapse of MF Global didn't break the OCC; in fact, they didn't have to touch their clearing fund in that case.  So the taxpayer's definitely not on the hook for this one.

Thu, 07/24/2014 - 08:59 | 4997414 maxamus
maxamus's picture

Are you happy if it is an insider that knew this news was coming so he made money illegally?  Are you happy if it is a politician or someone within the FDA that knew this was coming?

Wed, 07/23/2014 - 11:00 | 4992887 Stoploss
Stoploss's picture

Boy, talk about smokin' the shorts!!!

Is the building on fire too??

Wed, 07/23/2014 - 23:04 | 4996523 EscapingProgress
EscapingProgress's picture

The is nothing immoral about insider trading.

Wed, 07/23/2014 - 10:34 | 4992762 DeadFred
DeadFred's picture

Weeklies on SPY to catch the 20% drop that closes the market pays several time more All you need is a good crystal ball...

Wed, 07/23/2014 - 10:30 | 4992725 Grande Tetons
Grande Tetons's picture

The ole 89 bagger. Mine usually work in the opposite direction. 

Wed, 07/23/2014 - 10:30 | 4992745 NoDebt
NoDebt's picture

Take THAT, BitCoin!  Ha!

Oh, jeez, now I've done it, haven't I?

Wed, 07/23/2014 - 10:34 | 4992760 Pladizow
Pladizow's picture

I thought the "ole 89 bagger" was a geriatric dating site?

Wed, 07/23/2014 - 11:08 | 4992939 dvfco
dvfco's picture

I thought it was good Scotch.

Wed, 07/23/2014 - 10:35 | 4992766 Al Huxley
Al Huxley's picture

Nah, bitcoin's old news now - about as exciting as a utility stock.

Wed, 07/23/2014 - 11:00 | 4992886 NoDebt
NoDebt's picture

I know, I immediately regretted posting that.  Like I had spoken ill of the dead or something.

Wed, 07/23/2014 - 12:06 | 4993322 power steering
power steering's picture

You picked a bad day to wear see thru leggings

Wed, 07/23/2014 - 10:28 | 4992726 oklaboy
oklaboy's picture

way to go!!!

Wed, 07/23/2014 - 10:29 | 4992729 pods
pods's picture

Soon to be indicted QA rep from Puma Biotech can never cash in.

pods

Wed, 07/23/2014 - 10:29 | 4992731 Sudden Debt
Sudden Debt's picture

And now the secretary who was taking notes during the boardmeeting and left the room early owns the company...

Wed, 07/23/2014 - 10:28 | 4992733 ShrNfr
ShrNfr's picture

However, since it is a zero sum game, somebody who sold those calls just got hosed by the same amount.

Wed, 07/23/2014 - 10:36 | 4992769 ghengis86
ghengis86's picture

Meh. Probably some poor guy writing covered calls in his ShitTrade account looking to make a few bucks on the side. But it probably hurts just as much knowing that he'd have made enough to buy a new Winnebago if he'd held onto them.

Wed, 07/23/2014 - 10:29 | 4992734 slotmouth
slotmouth's picture

RIP whoever wrote those calls.

Wed, 07/23/2014 - 12:20 | 4993408 Wakemaker
Wakemaker's picture

If they were covered the writer made $40+ a share.

Wed, 07/23/2014 - 10:29 | 4992735 NoDebt
NoDebt's picture

I thought they made peanut butter.

Wed, 07/23/2014 - 10:31 | 4992748 Sudden Debt
Sudden Debt's picture

same product, different packaging...

Wed, 07/23/2014 - 10:31 | 4992740 Dre4dwolf
Dre4dwolf's picture

And with that volume it will be back down to 50$ by the end of the week.

Wed, 07/23/2014 - 10:33 | 4992753 Save_America1st
Save_America1st's picture

yeah, exactly!  that volume is off the charts...literally...there's so little volume it's barely even on there.  I had to zoom in 8900% in order to see that volume! 

Wed, 07/23/2014 - 10:30 | 4992741 SgtSchultz
SgtSchultz's picture

What a remarkable stroke of luck!!

Wed, 07/23/2014 - 10:30 | 4992743 orangegeek
orangegeek's picture

CYNK

Wed, 07/23/2014 - 10:32 | 4992751 Soul Glow
Soul Glow's picture

There are no bubbles.

- Janet Yellen

Wed, 07/23/2014 - 10:33 | 4992755 Byte Me
Byte Me's picture

Damn, my bet that Oboobo is straight expires today too.

Wed, 07/23/2014 - 10:37 | 4992775 DeadFred
DeadFred's picture

Some bets are just foolish to take.

Wed, 07/23/2014 - 10:45 | 4992814 Byte Me
Byte Me's picture

No, it had comparable odds. Expires midnight NY, so there's still time..

(Is it Triple Faggot Hour today though?) damn. Piss poor strategy if it is.

Wed, 07/23/2014 - 11:47 | 4993185 dontgoforit
dontgoforit's picture

So, who's in for 1000 share of Alibaba?  What's the open on that?  and where's it gonna go?

Wed, 07/23/2014 - 10:33 | 4992759 firstdivision
firstdivision's picture

Well we know Steve Cohen didn't make those trades on the 17th.  A good question is who did, and I'd put my money on someone high up the food chain at the FDA or a congressional staffer.

Wed, 07/23/2014 - 10:47 | 4992823 Oldballplayer
Oldballplayer's picture

Whoever it was thought that his buddies at the lunch table were going to go in on it too.

Now that one douche is holding the bag.

And that is how you get rid of douches at small companies.

Wed, 07/23/2014 - 10:35 | 4992764 alien-IQ
alien-IQ's picture

Beats digging ditches I guess....

Wed, 07/23/2014 - 10:44 | 4992779 Dr. Engali
Dr. Engali's picture

Puma biotech? I thought Puma made tennis shoes? They must be diversifying the business.

Wed, 07/23/2014 - 11:01 | 4992890 NoDebt
NoDebt's picture

You thought it was shoes, I thought it was peanut butter.  Seems we were all sadly and embarassingly misinformed.  

As pennance, we must go memorize the tickers of every pink sheet company.

Wed, 07/23/2014 - 10:37 | 4992783 More_sellers_th...
More_sellers_than_buyers's picture

Probably a Congressmen on a Panel for the FDA.

 

Wed, 07/23/2014 - 10:46 | 4992812 Sudden Debt
Sudden Debt's picture

They'd never do that! maybe his wife... yes... but that's legal...

Wed, 07/23/2014 - 11:49 | 4993195 dontgoforit
dontgoforit's picture

And there's your answer:  Nancy Pelosi's wife.

Wed, 07/23/2014 - 10:38 | 4992789 traderneal
traderneal's picture

I am usually the first one to cry foul on bullshit like this.   However, in this case it might be different.  A lot of times in bio land, dates are usually known in advance (publically) when comments are going to be announced about an upcoming drug.  So, in this instance it truly might be someone taking a crapshot.

Wed, 07/23/2014 - 10:41 | 4992798 Hindenburg...Oh Man
Hindenburg...Oh Man's picture

the NASDAQ 100 futures are a straight line up from about 1040 this AM

Wed, 07/23/2014 - 10:44 | 4992809 Sudden Debt
Sudden Debt's picture

man... I just checked out those options and it's like my wet dream to ever experience something like this :)

there's options that went up 45 times even close to in the money. Some people are having a pretty nice summer I guess :)

 

Wed, 07/23/2014 - 10:53 | 4992846 I Am Not a Copp...
I Am Not a Copper Top's picture

They will NEVER find out who it was.  Never found out who bought all those puts right before 9/11 did they?

Wed, 07/23/2014 - 11:15 | 4992976 El Hosel
El Hosel's picture

Oh, " They" found out alright, surely buried that information to protect the machine.

Wed, 07/23/2014 - 11:04 | 4992910 I am a Man I am...
I am a Man I am Forty's picture

somebody is getting fucking hammered tonight

Wed, 07/23/2014 - 11:11 | 4992948 chomu
chomu's picture

Considering the open interest @100, some of those calls have to be naked. Suckers...

Wed, 07/23/2014 - 11:18 | 4992992 Godisanhftbot
Godisanhftbot's picture

 Count up all the buys of crap like this that expire at zero.

 Hindsite bs.

 If it was inside info, thats something else, but if it was that easy to find these, you'd all be rich, not living in moms basement posting on good old ZH

 

 

Wed, 07/23/2014 - 11:18 | 4992996 Glass Seagull
Glass Seagull's picture

 

 

Cristal ballz.

Wed, 07/23/2014 - 11:31 | 4993087 tostaky06
tostaky06's picture

look like bitcoin charts

Wed, 07/23/2014 - 12:09 | 4993339 Carnegie_IB
Carnegie_IB's picture

nice trade

Wed, 07/23/2014 - 13:02 | 4993687 Fuku Ben
Fuku Ben's picture

PRESS RELEASE: The SEC has thoroughly investigated this matter and been instructed to find no indications of inside trading or other illicit activity.

Wed, 07/23/2014 - 19:26 | 4995635 exartizo
exartizo's picture

Trading is, was, and always has been a zero sum game.

The insider bastard who made the money stole it from someone else who did not have inside information.

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