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<h1 style="text-align: center;">Bot makes millions trading options</h1>
<h2>[WHAT]</h2>
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<li>]&nbsp;by <a href="http://www.slate.com/authors.seth_stevenson.html" target="_blank">Seth Stevenson</a> @slate.com - A Web-reading bot made millions on the options market. It also ate this guy&rsquo;s lunch.</li>
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<h2>[WHY]</h2>
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<li>]&nbsp;</li>
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<h2>[WHERE]</h2>
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<li><strong>] READ THE FULL ARTICLE</strong></li>
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<li>] <a href="http://www.slate.com/articles/business/moneybox/2015/04/bot_makes_2_4_million_reading_twitter_meet_the_guy_it_cost_a_fortune.html" target="_blank">http://www.slate.com/articles/business/moneybox/2015/04/bot_makes_2_4_million_reading_twitter_meet_the_guy_it_cost_a_fortune.html</a></li>
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<h2>[WHEN]</h2>
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<li>] What we&rsquo;re talking about here are options trades based on breaking rumors</li>
<li>]&nbsp;options traders noticed, that within &lt; 1 minute after announcement, trades for large quantity of options on companies,&nbsp;</li>
<li>]&nbsp;feasibly impossible for humans to make trades as quickly as these are happening,</li>
<li>] Consider that if the purchaser of those Altera options had taken his $110,530 and simply bought regular stock in Altera with it, he would have cleared about a $34,000 profit by the end of the day. Instead, using options, he made $2.4 million.</li>
<li>] Bots that make trades based on news content have been around for years</li>
<li>] There have also been reports about hedge funds that trade based on sentiments expressed in tweets</li>
<li>] In the case of the Altera incident, though, a bot appeared to read a rumor, understand it, and instantly execute an options strategy based on it.</li>
<li>] This is by far the most advanced version of this we&rsquo;ve ever seen. It&rsquo;s at a totally different level.&rdquo;</li>
<li>] To be fair, there is risk for the bot-users, too. &ldquo;Automated trading on Internet content is a highly competitive business. Things can go horribly awry for the bots. Tetlock pointed me to an example in which a 6-year-old news story about United Airlines&rsquo; 2002 bankruptcy somehow reappeared online in 2008. &ldquo;As algorithms traded on this stale news,&rdquo; Tetlock explained to me in an email, &ldquo;United&rsquo;s stock price plummeted by 76 percent within minutes.&rdquo;</li>
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<h2>[EXAMPLE]</h2>
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<li>]</li>
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<h2>[HOW-TO]</h2>
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<li>]</li>
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<h2>[REFERENCE]</h2>
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<li>]</li>
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<h1 style="text-align: center;">&nbsp;</h1>

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