Big VIX Call Options Trade Suggests Re-Emergence of '50 Cent'

Discussion in 'Options' started by ajacobson, Dec 18, 2019.

  1. ajacobson

    ajacobson

    Big VIX Call Options Trade Suggests Re-Emergence of '50 Cent'
    Gregory Calderone - Bloomberg
    An outsize CBOE Volatility Index options trade could signal the return of "50 Cent," an investor who earned the moniker for a proclivity to buy cheap options in large amounts.
    Someone snapped up roughly 130,000 January $22 calls on the index for about 50 cents each Tuesday, contracts that would pay off if the volatility gauge almost doubles from its current level. The trade came as the S&P 500 Index climbed toward a record for the fourth session in a row and the VIX, which tracks the 30-day implied volatility for stocks in the benchmark gauge, hovered near its lowest level of the year.
    /bloom.bg/38O6HxM
     
  2. I think 'fifty rode the market all the way up, now he wants to protect himself just a bit. Good on him.