"We risk becoming the best informed society that has ever died of ignorance"
- Rubén Blades

"You can't make up anything anymore. The world itself is a satire. All you're doing is recording it"
- Art Buchwald

"It's getting exciting now, two and one-half. Think of everything we've accomplished, man. Out these windows, we will view the collapse of financial history. One step closer to economic equilibrium"
- Tyler Durden

"It is your corrupt we claim. It is your evil that will be sought by us. With every breath, we shall hunt them down."
- Boondock Saints

Monday, November 26, 2012

Trades In Elan Corp. During Alleged SEC Insider Trading By SAC Capital

As reported by the WSJ, Steve "don't call me Stevie" Cohen's SAC Capital was wrapped up in an insider trading ring.  One of the stocks involved was that of Elan Corp (ELN) which traded from a close on Tuesday July 29th, 2008 at $33.75 to $9.93 three full days later on August 1st, 2008.  The complaint alleges that that OTM Put Options were purchased in advance of the 70%+ nose-dive.

The sick-wizards at Nanex decided that monitoring the market for the SEC could take a little break in the spirit of a fact-based hunt for the truth.  What they uncovered is as follows....

The most trading came on July 29th, 2008 with the stock trading between a low of $31.65 and a high of $34.57 (conditional coloring added by CC).

Plotted on a chart, ISO and Non-ISO shares significantly increase after the July 25, 2008 lullFor more on ISO's go to the TABB Forum's post from Haim Bodek.

On the Nanex website you can scroll through 30 different images of differing intervals, showing trades done in ELN Put options during the period the SEC highlights as the probably "insider-trading" period.  Every two charts show one day from 9:00 AM to 5:30 PM from 07/16/08 to 07/29/08.

Couple all this with the facts we covered Friday and market participants ought to be very careful given the false reporting, false regulating, and severe insider-exchange connected systems which are operating thanks to "expert-networks".

Feliz Salmon has a great post up showing the days revolving around the time period that SAC completely reversed it position and went heavily net short.

Daily Chart:

Here is the week that SAC reversed it position:

SEC SAC Capital Complaint