VIX OTC -> VIX listed otherwise that would have to lay it off with another OTC dealer or internalize the risk.
Big VIX bet, maybe this trader knows something we don't. Days prior to 911 a relative of president Bush bought a huge position in Stratesec which provides security for United airlines, airports & the world trade center. The stock doubled on the first day the market reopened - lucky or well informed? Days prior to 911 the acting CIA director bought 2,500 puts on United Airlines using 5 different exchanges - that was a real big winner - luck? This is just the tip of the Iceberg. Options buying went ballistic just B4 911 for bets that paid off huge. Some huge options bets are nearly a sure thing.
Some option traders do not take market direction positions. They only trade vol. Yes, I think the vol is cheap now. Or too cheap? Volume is low. Again one directional market up and up. All for the earning play. Then what is the next? We'll get April job number, inflation and a lot more.
And those are just the trades we know of, imagine all the ones we don’t. the more I’ve dived into and studied 9/11, i was always curious what was it? What the fook was 9/11?! Some say a terrorist attack. Some say an assault on our freedoms. Idk about that hogwash, the more I look at it.. it seems to be a heist. Of course it’s much more, but overall the world “trade” center was robbed and the evidence disposed of with precision. Moments before flight 11 hit the north tower, the servers on major banks (MS, WFC, JPM, BA) were hacked, and subsequently massive risk transferred. Both planes (Flight 11 into the North Tower, and 15 mins later Flight 175 into the South Tower) hit floors where no occupancy was, instead both planes hit floors housed by huge computer terminals. Systems that controlled all the data within the towers and the world. Those systems became inoperable before the first plane hit. Nothing is random. interesting to say the least. But yes, profiting off calamity is as old as the hills, but 9/11 was some next level shit.
VIX calls always seem like a bad bet. Only the near term VIX moves in a worthwhile manner. But if it doesn't move, then it expires worthless. jimo.
Its a hedge and one can assume there will be alot of naked puts bought in SPX over the next few days. But it did help set a floor on drop of VIX and VVIX this week. Having said this I took the trade for a hedge and to position myself to sell more premium.