"Timely trade in PG&E Corp options reaps millions" (PCG)

From Reuters, Jan. 24:

A well-timed trade in the options on PG&E Corp reaped a massive paper profit on Thursday after the electric utility’s shares soared following a state regulator clearing the company from any responsibilities related to the 2017 Tubbs wildfire.

PG&E shares soared 75 percent after the California Department of Forestry and Fire Protection (CAL FIRE) on Thursday cleared the company of the Tubbs Fire in 2017, saying the blaze was caused by a private electrical system close to a residential structure.

Minutes before the shares jumped, an unnamed trader paid $200,000 for 10,000 call contracts betting on the shares rising above $12 by Feb. 8. PG&E Corp shares were at $7.34 at that time.
Buying a call conveys the right to purchase shares at a fixed price in the future.

With the shares jumping to $13.95, the value of these contracts on paper rocketed to $3.7 million.
The trades took place at 2:39 p.m. EST, according to options analytics firm Trade Alert data. The news release on the Tubbs fire was issued at about 3:10 p.m. EST, according to CAL FIRE spokesman Scott McLean.

“Even if it was just a lotto ticket trade, it’s an extreme case of leverage paying off,” said Henry Schwartz, president of Trade Alert in New York...MORE, apparently this is not the first time someone has done this in PCG.