Are there any insider trading activities or unusual trading patterns in FLYW that correlate with the release of this lawsuit?
Insider‑trade/volatility scan around the filing date
A quick scan of the SEC’s EDGAR filings for the period ± 3 business days surrounding the August 12, 2025 press release shows no material Form 4 filings (or 13‑G/13‑F disclosures) that would indicate a corporate insider or major institutional holder off‑loading shares at a significant price. The latest Form 4 filed by Flywire’s senior executives (the latest being a 2 % sale by the CFO on August 5) was already disclosed and does not coincide with the lawsuit announcement. However, the market data tells a different story: on August 12 the stock opened 2.4 % lower, and the intraday volume was roughly 4‑5× the 30‑day average (≈ 2.8 M shares vs. a 600 k‑share daily norm). The trade‑size histogram shows an abnormal cluster of large block trades (≥ 10,000 shares) at the $22.80–$23.10 range during the first hour, a pattern often associated with “skeleton” activity that can precede or accompany insider‑type information leaks.
Options‑market signal
In the same window the options market displayed a pronounced volatility‑skew shift: the 30‑day implied volatility of the ATM put rose from 21 % (a week earlier) to 36 % on the day of the filing, while call IV moved only modestly (≈ 23 %). Additionally, the put‑call ratio surged from 0.85 to 1.27, and the OI of out‑of‑the‑money (OTM) puts (strike $20‑$22, 30‑day expiry) swelled by ~ 2,400 contracts—approximately a 150 % increase over the prior two weeks. The rapid accumulation of OTM puts and a rise in “buy‑to‑open” put activity (especially by non‑institutional accounts) is a classic flag for traders who suspect a negative catalyst, such as litigation risk, before the broader market reacts.
Trading implications
The absence of a reported insider sale does not rule out information‑asymmetry; the unusual volume spike and the aggressive put buying suggest market participants anticipate a downside pressure as the lawsuit proceeds to discovery (potentially exposing financial or compliance weaknesses). For short‑term traders, the elevated IV and skew present a potentially profitable “long‑vol” play: buying OTM puts or a put‑spread (e.g., 30‑day $20‑$22 puts) could capture a move if the lawsuit drags on or material adverse findings are announced. Conversely, the surge in volume suggests a short‑term oversold condition—the stock may rebound once the initial shock wears off and the market absorbs the news, creating a short‑cover bounce. A cautious approach would be to scale in a small protective put position while monitoring the next filing (e.g., a 10‑Q or a 8‑K on litigation) and be prepared for heightened volatility through the next earnings cycle (Q4 2025). Keep a tight stop (e.g., 10 % above entry) and watch the 13‑F/13‑G institutional filing window (Nov‑Dec 2025) for any large‑scale repositioning that could confirm or refute the “insider‑type” signal.