What happened 

Shares of Scorpio Bulkers Inc (NYSE:SALT) jumped as much as 14.4% in trading Wednesday after a big insider purchase was announced. Shares settled as the day went on and were up 6.4% at the market's close. 

So what

Between Jan. 31 and Feb. 10, 2020, company President Robert Bugbee purchased call options on 730,000 shares of the stock with a $3 strike price. The total cost of the options purchase was $0.9 million. 

Dry bulk tanker on open water.

Image source: Getty Images.

Insiders don't often make options purchases this large, which is why it's notable for investors. And the fact that it's an insider, who knows what the company is working on behind the scenes, is very notable if you're looking for bullish news on a stock

Now what

While it's never a good idea to buy a stock on one data point alone, insider buying can be a good indicator for investors. Insiders naturally have more knowledge about a company's inner workings, and if they're bullish we should pay attention. 

I am not a buyer of the stock today, but wouldn't be surprised to see Scorpio Bulkers perform well over the rest of the year ahead of the December 2020 options expiration of what President Bugbee purchased. He may already know something about the direction of the tanker market that investors aren't pricing in yet.