Investor Makes Mammoth VIX Bet That Could Pay Out $265 Million

Discussion in 'Wall St. News' started by Chuck Krug, Jul 25, 2017.

  1. As of last nite's close (VIX 10.17):
    12 puts - 0.90
    15 calls - 0.6
    25 calls - 0.15

    So the whole structure valued at -0.60, which means, IIRC, that it's lost money from inception. However, this may not matter, as the structure has apparently been rolled to Dec. I am not sure how the roll was priced, so I hereby terminate coverage of this trade :).
     
    #41     Sep 27, 2017
  2. The mammoth is back at it again...
     
    #42     Jan 11, 2018
  3. It was that English money manager, no? Sir Whatshisname
    That manages money for the Church of England.
     
    #43     Jan 12, 2018
  4. It's unlikely to be Ruffer, who is supposed to be "Mr Fiddy"...
     
    #44     Jan 12, 2018
  5. Ooh-la-la, it's not a great day to be a mammoth...

    Looked pretty heroic for a bit there, did our proboscidean, but, alas, it was not to last...
     
    #45     Feb 5, 2018
  6. newwurldmn

    newwurldmn

    ?

    The whole curve is up quite a bit.
     
    #46     Feb 5, 2018
  7. i960

    i960

    XIV is trading at 19 right now, SVXY trading at 18. Looks like the entire vol landscape might be in for a major shakeup after this, we'll see. It can probably only be a good thing.
     
    #47     Feb 5, 2018
  8. The 15 - 25 1x2 call spread cannot be doing too well today, is what I was referring to...
     
    #48     Feb 5, 2018
  9. i960

    i960

    Right, the bet that vol will go up but only so far and not beyond that. Seems like it's a bet on the ole Yellen style market coming to the rescue just like every other time over the past 2-3 years.
     
    #49     Feb 5, 2018
  10. Smth like that, I guess... As we discussed a while ago, it's bigly short vol of vol and I can't imagine it's having a good day today.
     
    #50     Feb 5, 2018