Fortunes are made and lost in a matter of minutes on Wall Street, but rarely as fast as last week, when a stockbroker’s quick reaction to a stock tip bagged him $2.4 million in profit.
And the windfall was acquired in the blink of an eye.
According to Fortune, Wall Street Journal reporter Dana Mattioli tweeted a tip Friday on a possible tech deal involving computer-chip maker Altera on Friday at 3:32 p.m — the information was sent out through the Journal’s newswire service at the same time.
The tweet as seen on Twitter:
Intel is in talks to buy Altera. Deal would be largest in Intel’s history. Scoop w/ @danacimilluca coming to http://t.co/Q7kOQBB8Zh$ALTR
— Dana Mattioli (@DanaMattioli) March 27, 2015
The NASDAQ Stock Market reacted by suspended trading on Altera at 3:35 p.m., but not before a lucky trader had already purchased the options, according to the New York Post.
Fortune said the trigger was pulled on the deal in less than a minute after the tweet.
The broker paid $110,530 for the right to buy around 300,000 shares of Altera at $36 a share — the stock was valued around $34.76 a share at the time, and the “call” options were only 35 cents each because the stock normally would not be expected to hit the $36 mark, the Post reported.
Altera closed out the day Friday up 28 percent, trading at $44.39 a share.
An investment strategist told the Post the broker likely saw the WSJ tweet at exactly the right moment, or knew about the tip ahead of time and was watching for it go public — or relied on an automated computer program, known as a “bot,” to be alerted.
Neither Altera nor Intel has confirmed the talk of a buyout.
DONATE TO BIZPAC REVIEW
Please help us! If you are fed up with letting radical big tech execs, phony fact-checkers, tyrannical liberals and a lying mainstream media have unprecedented power over your news please consider making a donation to BPR to help us fight them. Now is the time. Truth has never been more critical!
- Did Sunny Hostin just admit on air to breaking the law by voting for her son? - November 8, 2022
- Stacey Abrams justifies trailing in the polls by suggesting black men are too stupid to back her - November 7, 2022
- Kevin McCarthy has message for Pelosi telling Dems to ‘change the subject’ away from inflation - October 24, 2022
We have no tolerance for comments containing violence, racism, profanity, vulgarity, doxing, or discourteous behavior. If a comment is spam, instead of replying to it please click the ∨ icon below and to the right of that comment. Thank you for partnering with us to maintain fruitful conversation.