Meta Platforms: Bet Against The Insiders

Summary:

  • Meta Platforms, Inc. trading activities were dominated by sellers in 2022.
  • Its insider activities were 100% selling and there was no single case of insider buying in 2022.
  • The thesis of this article is twofold. First, I will argue against the obvious implications of the insider activities.
  • And second, I will use the insider selling prices as input to perform Kelly betting analysis.
  • The results show the hallmarks of a very favorable bet size.

Words Insider Selling on yellow finance background from graphs, charts. Trend Up and Down. 3D render

Vladimir Zakharov

Thesis

Trading activities surrounding Meta Platforms, Inc. (NASDAQ:META) were dominated by sellers in 2022. In the open market, the first plot below shows the stock suffered huge price plunges on heavy volumes twice: first in February 2022, then again in

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Source: Author based on data from stockcharts.com

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Source: DataRoma.com

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Source: Seeking Alpha data

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Source: Seeking Alpha data

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Source: Author

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Source: Author


Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.


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