For example, if yesterday you thought the AQNT stock was going to rise above 35.87, you might have gone out and bought the June 40 call. That would have given you the right to buy the stock at $40 any time before June 15th. The option would have cost you 60 cents. Of course if the stock stays at $35 the right to buy the stock at 40 isn't worth much. But when the stock shoots up to $63 then you can buy the stock at $40 and sell it at $63. That is a $23 dollar profit. And it only cost 60 cents to buy the option, so it is around a 3,700% return.

So how many contracts traded yesterday on the 40 strike? 3,009 contracts. But to be fair we need to compare that to the number that traded the day before, which was 28 contracts. Hmmm. Something smell fishy? The option activity for the prior 20 trading days ranged form 0 to 654 and averaged 96 contracts a day. To save you the math... if you spent $180,540 to buy 3,009 contracts yesterday you would have $6.74 million today. I can't say for sure this is illegal activity; but it sure has all the tell-tale signs.

Before you try this there is a catch. If you know the stock is going to go up (from inside information); it is blatantly illegal. They can hunt you down and send you to jail. So you had better hope you can be fast with those money transfers and have the jet ready to escape to a warm tropical country where you will stay for a long time.

Kevin Kersten is an Options Analyst with InvestorsObserver.com. Disclosure note: Mr. Kersten owns and or controls a diversified portfolios of long and short positions that may include holdings in companies he writes about.