A savvy stock trader scored a $2.4m windfall by using a tweet about a possible tech deal to outrace a herd of rival bulls.
The New York Post reports that the unidentified Wall Street whiz paid $110,530 on Friday afternoon for the right to buy around 300,000 shares in computer-chip maker Altera at $36 a share, according to reports.
At the time, Altera was trading at about $34.76 a share, and the trader’s “call” options cost a measly 35 cents each because the stock ordinarily wouldn’t be expected to hit the $36 mark.
But within just 28 minutes, Altera shares had soared in the wake of a Wall Street Journal reporter’s tweet that the company was 'in talks' to get bought out by Intel, reports said.
At Friday’s 4 p.m. closing bell, Altera’s price was $44.39 a share, up 28%.
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