[klyrs]

I still don't think it counts as insider trading if an outsider sabotages the airplane and buys the puts. The sabotage itself is probably a dozen federal offenses (gasp, terrorism!) resulting in actual prison time; insider trading only gets a slap on the wrist.

[loceng]

Agreed, it wouldn't be insider trading - just fraud - with potential horrible unintended but predictable consequences; of which the person(s) buying the stock around that orchestrated event happens would be complicit in.

There's probably far easier and more lucrative ways for clever criminals to execute on though.

[tim333]

I'm not sure it would even be fraud although obviously blowing up airplanes breaks some laws. But on the finance side if you buy calls on a company and then help it be successful in some way I don't think you have broken any laws.