Shorting a company I work for

>>1546306
what is shorting

>>1546306
You have to figure out if you count as insider.
I don't know what the legal definition is.

By the way, this board is an FBI honeypot.

>>1546306
When you open an account with a broker they ask you if you work for a company that is in the NYSE, so I can't really tell if it's legal or not buy you should be careful

Next earnings for $GME are on 11/28/16 - you should buy some put options on it.

>>1546306
I think its only for people with a controlling interest in the company, which you are not.

>>1546395
Technically it's anyone with nonpublic information.

>>1546325
He does
If he has info that is "material" and not publicly available.

>>1546396

OP told us so now it's public info. I'm a lawyer, this is how it works

>>1546411
Truth

>>1546306
The entire video gaming industry has turned into a lemon market. Stay away from it, not even Hollywood is this bad.

>>1546324
Shorting, or short selling, is when you borrow a share today, sell it, and promise to buy back a share at some later date to cover the share you borrowed.

The idea is that if you expect a company's share price to go down you can short sell it to make a profit off of that. You borrow a share, sell it for say $10 today. If tomorrow the price tanks to $5 you repurchase a share for $5 and use it to reimburse the borrowed share. Your profit: $5.

Of course, if it goes up in value you'll need to repurchase it at a higher price resulting in a loss.

>>1546407
>>1546411
I've been wondering about this.
If someone with inside information posts that information on sites like 4chan, stocktwits, twitter, and reddit, does it still count as inside information?
Is anyone who acts on that now-public information technically guilty of insider trading?

>>1546829
>If someone with inside information posts that information on sites like 4chan, stocktwits, twitter, and reddit, does it still count as inside information?
its illegal for them to do it, i dont think you get punished however once its 3rd party info.

>>1546829
I don't think this counts as insider information. At most it's hearsay since you don't have any actual access to the corporations financial data. Your manager could have been exaggerating, but I doubt it.

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294KB, 720x1280px

Stock broker and cfa speaking here (dont care about VIIb). If OP uses this information to make money this is considered insider trading, as this is material non public information. Furthermore, spreading false rumors could be considered market manipulation. So it is safe to say op will go to jail soon.

>>1548123

That certainly seems to be what's going on here. I know a guy that worked in the produce department in a national chain store (I WILL NOT name the store, for safety reasons), he overheard someone in the meat department talk about how they were having to return meat (this was before everyone knew about Madcow disease), and decided he was going to make some money off others misfortune.

Well, long story short, the national chain's stock plummeted, and the SEC came in to investigate my old pal's E-Trade account.

Found out he made FIVE figures with this insider info. He got destroyed. Two years in the pen.

SCARY.

>>1546306
I would say this does not meet the threshold for materiality. Overhearing something fairly vague like this is not material nonpublic information. How big is your region? How many regions does Gamestop have?

>>1548658
Fucked up, man. You trying to get this guy arrested?

>>1546388
Buying short-dated out of the money options is a great way to get flagged by the SEC for insider trading.

Then again, OP's probably such a poorfag they won't give a fuck.

What, they'll send a team out and bill some lawyers to fine him 2 grand?

>>1548735
"pre-orders are tanking" and "we're going to miss our projections" are too vague to mean anything material. Tanking how much? What projections?

Talking about shorting things, its probably too late to short Florida insurance companies isn't it.

>>1548798
I doubt anyone on /biz/ is a lawyer (I'm certainly not) but, aren't they?

I mean "[part of our business] is tanking" seems pretty material for earnings.

>>1548805
Read an interview somewhere they're estimating damage from 5-10 million up to 120 billion (sic), lotta variance still. Especially if the storm doubles back.

Maybe wait for the storm to dissipate, then buy in? Analysts will have a good handle on estimated damage, but tons of people will scramble to get insurance after the fact (Florida breaking its decade long hurricane-free streak and scaring all the Yankee migrants who thought they didn't need it).

>>1546806
Thank you for that explainer. Half the dickheads here would be like "hurr google it".

>>1548822
The other half would say "check investopedia".

They've usually got sweet videos to go with their explainers.

>>1546806
give me your fucking bitcoin address. I'm gunna send you a bit for that glorious explanation, you gorgeous man.

>>1548822
>calling other people dickheads
>can't be bothered to google his own questions

OP I have also considered shorting gamestop recently since its going the way of blockbuster.

Not sure completely how I will do it but im thinking i will roll over OTM puts every few months or so and see how that works.

None of this is insider trading btw. Theyre not going to arrest a wendys manager who trades based on shit they get from higher ups. A lot of lumber liquidators employees did similar shit a few years ago

>>1548123
ITW Heartland has done worse.

>>1546306
You are 100% safe op. You are a low level guy and they would never be able to prove that you have information about the company that is not general information. Plus as poor as a faggot like you is they wouldn't bother to punish you even if they could. So keep your gains to under 100k and your good to go.

>>1548134
Five figures isn't much.

>>1546407
Its actually slightly more sketchy than that. He has to believe the statement he heard is actually materially trustworthy. If its the regional manager, I'd assume it would be, but it depends. But like if it was just some shmuck he works with, its not.

>>1548949
99999 $ are decent money

>>1546306
I think that would be illegal.

I would not buy/short any gamestop shares for a while so that way it is fair for all the other investors/traders

>>1548835

1JZd8ABJiLPsXqQHF6pbfuE3FjKyTEot9h

thanks

OP works at Gamestop. Its not like hes going to be shorting thousands of shares of GME.

>>1548949

That's why it's scary, I suppose.