These massive trades, which returned 600 percent in four days, attracted a bit of attention at the time. Now, three years later, the FBI and SEC have launched an insider trading investigation to determine whether Icahn tipped off gambler William Walters who, in turn, told golfer Phil Mickelson, according to multiple published reports.
On Monday July 11th 2011, when Clorox stock was trading for $70, 16,242 call options traded, over 50 times the average volume of the previous five days. On July 14th, Icahn offered to buy Clorox for $76.50 a share, creating an instant windfall for whomever made those options trades. A call contract allows an investor to buy a stock for a set price within a set time.