Usually, we see insiders of companies buy the stocks of their companies, but you don’t see them buying call options too often. Here is what the president of Scorpio Tankers did recently.
(NYSE:STNG) (“Scorpio Tankers,” or the “Company”) announced that the President of the Company, Robert Bugbee, has purchased call options on 315,100 common shares (or 3,151 call option contracts) of the Company with strike price of $15.00 and an expiration of January 2021 for the consideration of $1,963,291.
As you can see, he spent $2 million call options on Scorpio Tankers. This means if the stock price does not go up significantly by January 2021, he will lose $2 million. This is some conviction.
I created the following video that I took from two 2019 shipping forums before the Coronavirus happened. I only included him talking and answering questions. The guy is pretty funny and he makes a lot of sense.
I first wrote about the tankers in my new book, How to Profit from the Coronavirus Recession.
Then I wrote about it in the following post.