Wall Street's Fear Gauge Due for 1100% Jump, Some Traders Bet

Discussion in 'Wall St. News' started by ETJ, Sep 7, 2023.

  1. ETJ

    ETJ

    Wall Street's Fear Gauge Due for 1100% Jump, Some Traders Bet
    Carly Wanna - Bloomberg
    The CBOE Volatility Index hasn't popped above 35 all year, but some traders are betting it clocks 180 over the next few months.
    A trader paid $30,000 Thursday for a brash wager that pays off if Wall Street's so-called 'fear gauge' increases more than twelvefold by its Feb. 14 expiration date. Since a version of the VIX started in 1993, the index has never even clocked 100. The closest it came was at the end of 2008 during the Great Financial Crisis when it hit 89.53 — just half of what the trade at hand is betting on.
    /jlne.ws/45FfT4D
     
    KCalhoun likes this.
  2. Overnight

    Overnight

    Paywall. I suppose they bought outright calls. Whomever wrote those calls just got free zero-risk monies.
     
    KCalhoun likes this.
  3. mervyn

    mervyn

    Is it 50 cents again?
     
    murray t turtle likes this.
  4. Sergio123

    Sergio123

    Sure it is. Volmageddon happens any day now.
     
  5. newwurldmn

    newwurldmn

    Risk manager trade.
     
  6. %%
    DONT know;
    good thing for me we dont want to look @ the same thing or trade /invest the same way:D:D
    Bloomberg also noted today ''Boss of Failed Crypto Exchange Gets 11,000Year Sentence''
    11,000 = repeating pattern??:caution::caution:
     
  7. hilmy83

    hilmy83

    I got some money in SVOL. I know I'm a sucker for yield, but wondering how SVOL would fare when vix shoots up again :vomit:
     
  8. cesfx

    cesfx

    An armageddon hedge?
     
  9. newwurldmn

    newwurldmn

    No. A trade that looks good on a risk report but will never payout
     
  10. cesfx

    cesfx

    Oh wow... ok, thanks.
     
    #10     Sep 9, 2023