https://www.bloomberg.com/news/arti...evoking-memories-of-50-cent?srnd=fixed-income A big buyer is accumulating protection against a major sell-off in U.S. stocks over the next month. More than 570,000 call options tied to the Cboe Volatility Index -- known as the market’s “fear gauge” -- have traded as of 2:25 p.m. on Wednesday in New York, compared to less than 50,000 put options. That would leave the put/call ratio at its lowest in more than four years, prior to China’s shock devaluation of the yuan. The activity is similar to moves by the infamous volatility buyer known as “50 Cent,” so dubbed for the practice of purchasing protection priced at half-a-dollar a piece in considerable size. This player was active throughout 2017, the most tranquil year for U.S. stocks in over 50 years, yet was finally able to reap a massive payday on the trade to the biggest one-day jump in implied equity volatility in history on Feb. 5, 2018. But this type of buying behavior has been seen only sparingly since then. “The large VIX call buying over the past two days is a definite change of character in the VIX options market in an otherwise sleepy tape,’’ said Patrick Hennessy, head trader at IPS Strategic Capital. “There hasn’t been many of these chunky 50,000-plus contract prints in the VIX space this year, which was a theme that dominated the VIX options market back in 2017 when ‘50 Cent’ was present.’’
Negative Convexity Cometh! Next week USTR & team go to China to see if they can restart trade talks...when that fails....er, um...I mean, is spun by the US Admin as "progress," we may see Vol Call buyers ITM pretty quickly. Thur afternoon, Friday morning front week Vol Call punt may payoff well. Otherwise, roll up.
He cashed out next day when market dropped for 1.7 Mil gain... If he had kept it longer, he would be flying now