How do stocks get front-run before information is public if insider trading is illegal?


For example, I've seen cases where people buy tons of stocks/options for certain strike prices that are WAYYYY out of the money, and somehow it “magically” reaches that price and ends up in the money on or before that exact date when a large merger or acquisition happens sending the stock up 100% in a day to that EXACT strike price

I've also seen stocks that randomly get acquired by a larger company, but the stock starts surging days before the acquisition even happens or is made public, on way higher than normal average volumes, and huge blocks of shares bought ($1 million dollar+ blocks of trades). So it's not just speculation by small retail money, it's almost as if “big money” knows something that isn't public information. How? Isn't that illegal?


Comments

Leave a Reply

Your email address will not be published. Required fields are marked *