Put Options Spike Ahead of CEO Dismissal

The CEO of LendingClub $LC was stood down yesterday amid claims of misleading investors. This came two weeks after the Option Scanner showed LC on the put alert list.

$LC Stock Tanks 35%

19th April: Put Option Alert

$LC popped up on the scanner showing the highest volume for the trading day of the 19th April. 16,437 contracts traded over 2,027 in open interest for the day.

$LC Option Scanner

On this day the options were trading at 0.80 by the close of business.

9th May: CEO Steps Down

Yesterday, the CEO was either fired, stood down, or resigned on his own. Either way, the stock tanked 35% on the news that the company is reported to have violated securities law by misleading investors with their information.

...an internal review of sales of $22 million in near-prime loans to a single investor, in contravention of the investor's express instructions as to a noncredit and nonpricing element, in March and April 2016.

Khang & Khang LLP announces that it is investigating claims of potential misrepresentations by LendingClub Corporation

Now, those same options are now trading at 2.80. That's a 350% return in two weeks!

$LC Options 9th May

Buy the same tool I used to find this opportunity: Option Scanner Pro.

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