Insider Trading Rules31 May 2023 12:35
The CEO bought shares after the release of earnings data.
I imagine that he would advisedly avoid releasing any positive news for a period of time to avoid risk of insider trading accusations. This only adds confidence to the firm shorting the stock. They can hold onto the short for at least a month, I would say. They are currently cashing in on the negative sentiment expressed publicly by a small number of parties.
The CEO, however, bought the shares after a short term drop in the share price that any trader can take advantage of, so no risk of suspicion of insider trading, particularly as the price has dropped in the short term since he invested.
It shouldn't affect long term holders, hence Institutional Investors are still holding their shares.
If the Institutional Investors start to sell, this would be another issue, but this isn't happening.
The small investor, however, may have a strategy of cashing in his hand after a 10% drop in share price.
He has to cash in his hand, thus playing into the hands of the shorters.
Hence the short term play by AHL, who picked up half the short that Marble cashed in. I don't think that collusion between investors is illegal, just the "Wolves of Wall Street" having some high adrenaline fun, I would imagine.
All my own opinion from my own observations. Can anyone add anything further regarding the insider trading rules?