Big VIX Options Trade Braces for a 2008-Like Volatility Surge

[ETJ]

Could be part of a hedge - who knows. This is a couple of days old.

https://www.bloomberg.com/news/arti...s-trade-braces-for-2008-like-volatility-surge

 

[easymon1]

from the article: "The standout trade was one block of 50,000 April $65 calls that were bought for 10 cents. Those contracts would imply a surge in the VIX of almost 500% from its current level."

for us noobs out here, how would the cost of buying those calls be caclulated?

50,000 calls
10 cents

is that a $5000.00 trade that was paid for?
is there any way that trade could cost More than the price paid, if no more is done with it?
Thx

 

[KCalhoun]

i'm scaling back into TVIX VXX UVXY (+ SQQQ SOXS) if they keep going up; premkt gaps up a bit today

 

[newwurldmn]

from the article: "The standout trade was one block of 50,000 April $65 calls that were bought for 10 cents. Those contracts would imply a surge in the VIX of almost 500% from its current level."

for us noobs out here, how would the cost of buying those calls be caclulated?

50,000 calls
10 cents

is that a $5000.00 trade that was paid for?
is there any way that trade could cost More than the price paid, if no more is done with it?
Thx

Each call is worth $100/point.

So it’s actually 500k.

 

[S2007S]

Could be part of a hedge - who knows. This is a couple of days old.

https://www.bloomberg.com/news/arti...s-trade-braces-for-2008-like-volatility-surge

Definitely a hedge.
$500,000 hedge...

Portfolio definitely worth tens of millions.