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

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

  1. newwurldmn

    newwurldmn

    Oh yeah. It was one of those trades that look like a hedge on paper.
     
    #51     Feb 5, 2018
  2. And this here is the absolute height of idiocy:
    http://www.businessinsider.com/vix-...to-reap-gains-he-made-from-stock-chaos-2018-2

    Apparently, being left naked short 250k+ March 25 calls is considered to be "taking profit". In fact, the Mammoth or the Elephant or whatever would have realized a loss on the structure, if he/she unwound the whole thing. Instead they chose to sell the 15-25 1x1 call spread, rather than the original 1x2. Since they just did the roll on Friday and the unwind on Tuesday, this, in fact, is nothing other than a stop (with a bit of a prayer thrown in).
     
    #52     Feb 7, 2018
  3. i960

    i960

  4. #54     Feb 13, 2018
    nbbo likes this.