'50 Cent' VIX Trader Returns as Volatility Hedging Back in Vogue

[ETJ]

Lu Wang - Bloomberg
The "50 Cent" trader, who made a splash in the options market years ago, is likely back with another big bet on stock volatility.
In a transaction late Tuesday, someone paid 50 cents each for 100,000 call contracts, worth $5 million, betting that the Cboe Volatility Index will surge to 50 in May. Another purchase at the same strike price and expiry was fired out Wednesday, with 50,000 contracts snapped up at 51 cents apiece for $2.6 million in total.
/jlne.ws/3EATV7x

 

[mervyn]

Lu Wang - Bloomberg
The "50 Cent" trader, who made a splash in the options market years ago, is likely back with another big bet on stock volatility.
In a transaction late Tuesday, someone paid 50 cents each for 100,000 call contracts, worth $5 million, betting that the Cboe Volatility Index will surge to 50 in May. Another purchase at the same strike price and expiry was fired out Wednesday, with 50,000 contracts snapped up at 51 cents apiece for $2.6 million in total.
/jlne.ws/3EATV7x

if you are smart, follow the trade. maybe som money in the pocket.

 

[M.W.]

Is that how you approach trading cryptos as well? Lmao

if you are smart, follow the trade. maybe som money in the pocket.

 

[mervyn]

Is that how you approach trading cryptos as well? Lmao

I don’t trade digital assets. But yes, followed the 50 cents trades in 2021, small pocket changes but I didn’t know where they exited. I was out +25% +50% and +100%.

 

[stochastix]

I don’t trade digital assets. But yes, followed the 50 cents trades in 2021, small pocket changes but I didn’t know where they exited. I was out +25% +50% and +100%.

vix isnt a digital asset

 

[mervyn]

Lu Wang - Bloomberg
The "50 Cent" trader, who made a splash in the options market years ago, is likely back with another big bet on stock volatility.
In a transaction late Tuesday, someone paid 50 cents each for 100,000 call contracts, worth $5 million, betting that the Cboe Volatility Index will surge to 50 in May. Another purchase at the same strike price and expiry was fired out Wednesday, with 50,000 contracts snapped up at 51 cents apiece for $2.6 million in total.
/jlne.ws/3EATV7x

Now the price is 61 cents, if he exit now., that is 22% profit already.

 

[mervyn]

vix isnt a digital asset

No, I was referring to MW comment.

 

[SoyUnGanador]

I remember this. How did his VIX bets do back the first time around? I think I remember reading he crushed at least some of them. No me likey!

 

[mervyn]

I remember this. How did his VIX bets do back the first time around? I think I remember reading he crushed at least some of them. No me likey!

I recalled he made lot of money in 2021, not much in 2022.

I learned his trade and buy 3-6 months calls whenever the vix is approaching low.

 

[newwurldmn]

The firm that traded it, claimed it wasn't worth it in the end. Buying the tail hedges eventually paid off, but they burned a lot of money in the interim.