The post Insider trading? $2 million bet against CrowdStrike stock days before outage appeared on BitcoinEthereumNews.com.

In a new twist to the story of a widespread IT outage that affected devices across the planet, caused by a CrowdStrike (NASDAQ: CRWD) update related to Microsoft (NASDAQ: MSFT) systems, it appears someone had made a massive $2 million dollar put bet on CRWD stock right before it happened. Specifically, just two days before the outage, someone had placed a $2.3 million dollar put bet on CRWD with a strike price of $370, expiring on January 17, 2025, as per the information shared by researcher and interviewer Josh Walkos, a.k.a Champagne Joshi in an X post on July 23. CrowdStrike stock trade volume around outage. Source: Champagne Joshi As a reminder, put stock options equal to betting that the stock price will fall, which means whoever placed them is bearish on the stock, as opposed to calls, which refer to a bet that a stock will rise and reflect a bullish conviction. Coincidence or something else? According to Walkos, the likelihood of this being just a bizarre coincidence was “extraordinarily low (…) in the context of the outage and subsequent price drop,” arguing that this proves that “someone knew something was coming.” As he further pointed out: “It’s like flipping a coin and getting heads 25 times in a row. It’s akin to winning a major lottery jackpot multiple times in [a] row or predicting the exact moment and location of a meteor striking the Earth. 7.22 times the standard deviation from the average. It’s a big deal.” Indeed, the researcher had earlier posted data on a purchase of an “unusually large block of put contracts for CrowdStrike, valued at approximately $2.3 million, just 2 days before the outage that caused network failures worldwide and grounded planes.” As he said: “These contracts had a strike price of $370 per…

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Filed under: News - @ July 23, 2024 10:14 am