(Originally published here on August 4, 2013)

Jeff Matthews has a funny blog post about how someone bought call options over 760 thousand shares of Booz Allen Hamilton (NYSE:BAH). The strike price for these options was $20.

This is an enormous trade - over seven times the open interest in all options of all stripes for BAH.

The next day comes a headline:

Accenture in Talks to Buy Booz & Co.  An Acquisition Would Beef Up Strategy and Operations Consulting

As Jeff Matthews tartly notes Booz & Co is not the same company as Booz Allen Hamilton - they separated years ago.

And so our want-to-be insider trader has blown his dough - 760 thousand times 85c worth - or a little over 650 grand if you include brokerage. This was a costly error, but less costly than the criminal trial and almost certain conviction for insider trading if our imbecilic crook had been right. I mean he didn't think he could get away with that did he?

As luck would have it, Booze Allen Hamilton "crushed" earnings estimates. Here is the stock chart:

And so our asinine aspiring insider trader has made quite a decent profit proving once again that it is better to be lucky than good on Wall Street.

Notch one for the bad guys.

In my darker moments I imagine there is enough inside information around that someone knew about both the Booz & Co takeover and the Booz Allen Hamilton earnings beat and were Machiavellian enough to know they could trade this information aggressively and not get pinged for insider trading. But that couldn't possibly be true... could it?