why would they do that with VIX? Why not options on the stocks?
Some option traders do not take market direction positions. They only trade vol. Yes, I think the vol is cheap now. Or too cheap?why would they do that with VIX? Why not options on the stocks?
Big VIX bet, maybe this trader knows something we don't.
Days prior to 911 a relative of president Bush bought a huge position in Stratesec which provides security for United airlines, airports & the world trade center. The stock doubled on the first day the market reopened - lucky or well informed?
Days prior to 911 the acting CIA director bought 2,500 puts on United Airlines using 5 different exchanges - that was a real big winner - luck?
This is just the tip of the Iceberg. Options buying went ballistic just B4 911 for bets that paid off huge. Some huge options bets are nearly a sure thing.
You neglected to mention the puts the ToothFairy bought.
Market is way too complacent, if you have huge long positions buying some vix calls would be a great idea.
This always happens after the vix drops and drops and drops. Then out of no where it skyrockets to 25+ and eventually 40+ if fear lasts longer than a week. Of course people will only wish to buy vix calls after the fact the market has fallen, so buying in now might not be such a bad idea.
Agree but it wasn't obvious or they spread the put purchases over several brokers.I think they found that those put purchases were coincidental and not informed.