Trader Turns $22,000 Into $10M In One Day: Insider Trading Or Genius In Cisco-Splunk Deal?
Portfolio Pulse from Aaron Bry
Cisco Systems Inc (CSCO) announced its acquisition of Splunk Inc (SPLK) for $28 billion, causing Splunk's stock to rise over 20%. A trader who bought $22,000 worth of out-of-the-money call options on Splunk the day before the announcement saw their options value increase to over $10 million. This has led to speculation of insider trading.
September 21, 2023 | 8:59 pm
News sentiment analysis
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POSITIVE IMPACT
Cisco's acquisition of Splunk may strengthen its position in the software data industry.
Acquisitions often lead to a short-term increase in the acquiring company's stock price due to potential synergies and growth prospects.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Splunk's stock rose over 20% following the acquisition announcement by Cisco.
Acquisition announcements typically lead to a short-term increase in the stock price of the company being acquired due to the premium paid by the acquiring company.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100