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Imagine this… you are one of the Wall Street bros and your out golfing with your wall st buddy who knows a guy who knows a guy who told him that Warren Buffet bought $UNH (confirmed)
So you go buy $50k of calls for this week at a $300 strike price for $.10 ea ($10 ea)…
News comes out that Warren buys
Assuming the stock opens tomorrow at $307.5 where it is overnight right now, your $50k is now $3.75 million
You know this happened a ton, with even bigger numbers
And not only with $UNH this happens with every ticker