
Even the wealthiest investors make mistakes that get them in big trouble
| How the Elites Get Flagged By the SEC Back in 2013, Warren Buffett teamed up with a Brazilian company called "3G" to buy HJ Heinz, the ketchup company. The purchase price was 19% higher than what the stock was trading at the close. The day before the announcement, someone purchased a block of over 2,500 out of the money (OTM) calls for a capital outlay of about $90k. The next day, those same calls were worth over $1.8 million. Not bad for a trade, but this is the stupidest way to play it. Trading options the day before a buyout will throw up a million red flags for the SEC… Which is what happened. In February 2013, the SEC started hunting down those trades. Turns out they found some shady stuff going on… Did You Miss These Recent Articles? Two Uncomfortable Truths About the World (and One About the Market) Few want to talk about this… Why the Markets Bounced So Hard These charts explain all… and show how you could've predicted this bounce. Why Are These Insiders Buying In Size? Grab 3 tickers seeing recent big-time insider buys. To Your Trading Success, Steven Place Market Analyst Market Traders Daily |
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