The $6.4 Million Insider Trading Jackpot They Don't Want Exposed
The Options Trade That Exposed Wall Street’s Oldest Secret
I watched it happen in real time...
And by the time you read this, the fortune was already made.
Four minutes after the market closed, my screen lit up with one headline and one number.
“Ferrero Nears Roughly $3 Billion Deal for Maker of Froot Loops, Frosted Flakes.” KLG +45%
But the real story started days before.
What looked like just another “smart money” bet turned out to be something even more rare. Truly informed money.
The kind that gets whispered about as “little birdie” trades.
Who Was In Early?
Let’s rewind to July 1.
It’s the kind of summer day when half of Wall Street is heading to the Hamptons early.
Volume is light, trading is slow, and most people are more focused on the holiday weekend than their screens.
But somebody with deep pockets—and a little “information”—was busy when no one was looking.
They walked into the options pit and quietly snapped up 4,000 of the $17.50 calls on WK Kellogg.
An invisible sleepy cereal stock. It barely trades any options contracts most days.
But out of nowhere, 20x the normal volume hits the tape. Someone snaps up $180,000 worth of the $17.50 calls. No hesitation.
Nobody cared. Most missed it.
Until those same calls shot from $0.45 to $8. That $180,000 “small” bet? Now worth $3.2 million.
And it gets better.
Lightning Doesn’t Strike Twice Except Here
The next day, and again yesterday, someone, probably the same player, loaded up with another 4,000 August $17.50 calls. This time, $452,000.
Again, no headlines. Just a fat order sitting quietly for anyone watching the tape.
Today? That stack is worth another $3.2 million.
Do the math. $180K plus $452K in, $6.4 million out.
Is That Luck? Or Is It a Little Birdie?
Whenever there’s a juicy buyout, a surprise contract, or a merger, this pattern repeats.
Big, bold call buying from a shadow player. Nobody talks until after the fact. The media acts shocked. But anyone watching options flow? They saw it coming.
Why Ferrero Is Buying Everything
The official line is Ferrero wants more American snack food territory. First candy, then chocolate, now cereal. Wall Street loves a nostalgia in a box story.
WK Kellogg is a spinoff. Nobody cared. Until today.
Because in every big move, there’s a trade that already knew what was coming.
Wall Street’s Oldest Secret
I’m not here to play detective. Maybe the guy just likes breakfast. But if you think this is just “luck,” you haven’t seen enough tape.
This is why I follow the money in the options market.
Not because I believe in fairy tales. Because I know how the game really works.
The big trades, if you know where to look, leave clues every time.
Here’s the Takeaway
If you’re waiting for CNBC to break a story, you’re already late.
But if you’re watching the options market, tracking Hot Money before the headlines, you sometimes spot these plays before the herd.
That’s what I do every week for Hot Money Trader members. I watch where the real money moves before the headlines break.
And lately, we’ve been on a hot streak with big winners in this wild market.
I wish I could say we nailed this cereal play for the team—believe me, I wanted it. But I’d rather be close than clueless.
Because that’s the game. Today, it was cereal. Tomorrow, it could be anything.
Wall Street always leaves a clue.
Keep your eyes open. Don’t let the “little birdies” be the only ones feasting.
Trade smart. Until tomorrow,
Josh Belanger