Insider Trading Involved In 1 Out Of 4 Mergers [STUDY]

A “groundbreaking” study on insider trading confirms your worst suspicions: insider trading is worse than you might imagine. The report shows that 30 days prior to a merger and acquisition announcement unusual option activity took place in the options markets in one out of four cases. Insider trading before JPMoragan – Bank One merger announcement The merger of Bank One with JPMorgan Chase & Co. (NYSE:JPM) in 2004, in which one investor was alleged to have bought deep out-of-the-money calls just hours before the announcement, is indicative of the type of insider trading activities that occur in the derivatives markets,…