In-Out of the money...

Apparently Porsche acquired a huge chunk of VW in a well engineered derivatives operation that caught off-guard hedge funds worldwide, raising the capitalization of VW well beyond the total market cap of Ibex-35 (the leading stock index in Spain, this was according the local press)

The hedge funds are crying foul: this transaction puts in disrepute German markets. That is odd.The stock market has almost real-time, free information about any major exchange in the world.

What is clear is that if the hedge fund managers had information about Porsche bets, they would not have shorted VW. The derivatives market seems to be too asymmetric. It preys even on the predators.