Kudos to WSJ on Options Investigation

As yet another fraud investigation ramps up, and executives get fired, and indictments will soon get handed down, the WSJ deserves kudos for the entire backdating of CEO Options mess (See CEO Options: Luck — or something else?).

They broke the story, and started the whole ball of wax rolling . . .  Nicely done.

(Now please stop burying killer columns on Saturday)


UPDATE: May 19, 2006 5:23pm

In the comments, Microcap Speculator correctly points us to Professor Erik Lie of the University of Iowa as the originator of this research.

Nicely done, Prof!

What's been said:

Discussions found on the web:
  1. emd commented on May 19

    Agreed… it’s a shame the WSJ has to do the job of the SEC and other regulatory bodies, but I guess it’s really no surprise.

    Nice job WSJ. I’m sick of CEO’s ripping off the shareholders.

  2. Bob A commented on May 19

    speaking of investigations, maybe they could have a little chit chat with that nice Fed governor lady who helped fluff the market a few weeks back.

  3. Sam commented on May 19

    Look at the August and November VIX calls trading 3 points below intrinsic value. Disgusting! The hucksters who market this crap should be shot.

  4. jim commented on May 19

    Options are basically a losing game. I was thinking yesterday of the credit spread players who must be getting killed in this big downdraft. You know, the bull puts where you pick up a couple hundred dollars premium but are on the hook for thousands if the trade gets away from you.

  5. Nona commented on May 19


    This is (yet another) example of the private sector doing the better job.

    I could tell you stories….

  6. Nona commented on May 19

    Microcap: Thanks for letting us know — it’s important to ensure that the right people get the kudos they deserve — and for providing the link.

  7. Larry Nusbaum, Scottsdale commented on May 20

    I am having a terrible time of convincing my brokerage firm of back-dating my YHOO stock from January 3rd, 2000, when I meant to sell it at $496.

  8. Investigation commented on Jun 1


    Investigation Catalyst is a new genre of self directing, collaborative IF you can see this text, se…

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  10. 翻译公司 commented on Aug 16

    In better news they’ve tightened the standards making non-obviousness a higher bar. What effects these have in practice remains to be seen. oktrans.cn

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