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Strategies & Market Trends : Option Spreads, Credit my Debit -- Ignore unavailable to you. Want to Upgrade?

To: Dan Duchardt who wrote (1940)	1/24/2001 9:22:50 AM
From: KFE	Respond to of 2317

Dan, I heard McMillan speak about these high volume option trades at the Expo last year in New York I attended the Expo last year also (will attend again next month) and listened to McMillan's presentation but I don't remember him saying anything about how he distinguishes between insider activity and hedging. I have been involved in insider trading investigations both as an investigator and as possible participant/witness so some of my analysis is based on experience. He had some data that said the activity is most often traced to some offshore accounts where there is no jurisdiction for the regulating authorities to identify the perps I talked to him privately about this at the EXPO and told him of instances where the perps were caught trading thru offshore accounts. They still have to use communication devices. Sometimes it can be profitable to trade possible takeover deals through unusual option volume because if you can anticipate which ones will be touted/alerted by such sites as Opionetics, McMillan, Schaeffer that alone will be good for a quick pop. The trade I mentioned (ALLR) would have probably gapped open the next morning anyway even without a deal announcement when all the traders that work other jobs come home and react to the alerts by buying the next morning at the opening. Regards, Ken