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Letter: Evidence suggests market manipulated

Letter: Evidence suggests market manipulated

Glenn Witecki, Schenectady
Letter: Evidence suggests market manipulated
Photographer: Shutterstock

 

On Sept. 7,  at about 3:30 p.m., an announcement was made that the Trump administration was considering yet more tariffs on China. It was well known to those who made the announcement that the stock market would close at 4 p.m. Apple stock is potentially more impacted by China tariffs than most other stocks. 

When the announcement was made about 3:30 p.m., Apple stock was trading at about $224.70 per share. By 4 p.m., it was down to $221.30. That may not sound like a big difference, but for those who understand the stock options market, an individual who knew this news was coming could have purchased an Apple Stock Option Put at 3:30 p.m. to sell Apple Stock at the price of $222.50 per share, and each option contract would have cost them $1.

By 3:59 p.m., a span of 29 minutes, that same option contract was worth at least $130. In simple math, an investment of $1,000 at 3:30 p.m. could have yielded a sales value of $130,000 in 29 minutes. A bigger investment would have yielded a bigger gain. 

Remarkable? Intentional market manipulation designed to benefit those who may have been told? Just sayin’.

Glenn Witecki

Schenectady

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