Spike In Herbalife Ltd. (HLF) Put Options Raises Insider Trading Alarm

When Herbalife Ltd. (NYSE:HLF) announced that it had received a civil investigative demand (CID) from the Federal Trade Commission (FTC), most people knew that it was a real possibility (even those who support the company are aware of widespread criticism). But predicting exactly when a probe would start is another matter entirely, which is why a sudden spike in put options before the announcement has people calling foul. Yesterday, the finance blog Bored with the Noise noticed that there was a lot of activity before the announcement and before trade on the stock was temporarily halted. Hunting puts with an…