Despite telling U.S. District Judge Kenneth Karas that he was “sorry” for leaking somewhat important information to Goldman Sachs employees Eugene “Dance like nobody’s watching” Plotkin and David Pajcin, former Merrill Lynch analyst Stanislave Shpigelman will soon be heading to the big house for three years and one month. Shpigelman admitted that while working in Merrill’s M&A division, he took part in “a scheme that used gabby investment bankers and leaked copies of a market-moving magazine,” facilitating others in making in excess of $6.7 million between October 2004 and August 2005. Impressively trumping the fact that the judge felt the need to note that he doled out the sentence with “a ‘heavy heart’ because Shpigelman had one of the nicest families he had ever known,” is the fact that Shpigelman was recruited for the scheme by Plotkin and Pajcin “in a meeting at Club 88, a Manhattan day spa and Russian sauna,” according to the S.E.C.
Ex-Analyst Gets Prison [Forbes]
Ex-Merrill Analyst Gets 37 Months in Insider Case [Bloomberg via Dealbook]
Earlier: Urban Grand Daddy
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- Use the Bloomberg command
NH BLG_DEALBREAKER <GO>
to access Dealbreaker
Make sure you know what you’re doing this stuff is very risky and still very experimental but optnios are a fantastic hedging tool if you use them correctly.I’m assuming you’re very familiar with optnios otherwise you wouldn’t be asking this. If you can’t look at an optnios spread and know exactly what everything is right away, you’re not ready yet.The only strategy with optnios I currently use is only for the purpose of hedging. I’ll go long or short on a stock (equity), and then go the opposite direction with the option. So if I buy 500 shares of IBM at $50 I’ll buy 500 puts on the stock. If the stock goes up, awesome if the stock goes down, I can then sell the stock at the strike price and recover my losses. I’m sure you know how that works, so I won’t explain it.The other way of using (covered) optnios that I find useful goes like this I buy 1000 shares of google for $300 a share, which I’m sure will rise a few percent in the near future.. I’ll sell 10 call optnios (pocketing the premiums that the call buyers paid) with a strike price of $310. If it doesn’t hit the strike price, I made free money with the premiums if it does hit the strike price I’m still on top because at least I made $10 a share and rode the wave for a little bit. If the price hits $312 and the buyer exercises the call, I’ll lose the shares. If I look at the stock again and still think it’s going to go up I can do the same process. Eventually, the stock will stop climbing, and I’ll pocket all the premiums.These are obviously all covered optnios, as in both examples I imply that I own the securities. Uncovered optnios are just too risky I’ve heard way too many stories of people who struck it big, only to lose everything at once. There are just way too many powerful institutional trading programs out there that can value optnios a hell of a lot better than individual traders can. -2Was this answer helpful?
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