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jhola fakir's avatar

Not to nit pick the great write up and well detailed points but there are plenty of reasons to recommend a call option over the stock. Investment needed is much less and risk is limited to the relatively smaller invested capital. If it's a short term momentum/speculative trade. Buying calls hedges a short position on actual stock (not the case here though). Call spreads are especially used opportunistically to take advantage of earnings announcement. Simply choosing a call option over the actual stock is not unethical/immoral.

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jhola fakir's avatar

Classic case of front running. There was a similar case with a CNBC anchor (Hemant something) too who used his relatives account to front run stocks that they were going to advertise on their show. The day white collar crime gets treated as regular crime with harsh jail time is when such things will slow down until then greed, for lack of a better word, is tempting.

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