That is insane:
On the morning of July 11, according to the SEC, Dinh used his own online account to place orders to sell his options contracts and then placed corresponding buy orders for 7,200 Cisco option contracts through the victim's account.
Dinh used about $47,000 from the Boston man's account and avoided losses of about $37,000 on his options, officials said.
From June 18 through June 27, Dinh bought 9,120 put options contracts at the strike price of $15 per share through an online trading account at Cybertrader.com, they said.
Each contract gave him the right to sell 100 shares at $15 per share until the expiration date of July 19 was reached. Dinh paid $10 per contract for a total of $91,200, they said.
Nine days before the expiration date, Cisco stock was trading at about $19 per share, making his put options potentially worthless and putting Dinh at risk of losing the entire $91,200 he paid to buy the options, the officials said. |
