Record Bet: Trader Sells $18 Million in VIX Calls

sle said:
hmmm... really? you might want to include delta in your calculations :)
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Which delta (underlying, strike, expiration, etc)? The point was that selling calls on VIX was viewed by others as a stupid trade, and I thought it was a smart one. VIX was at 22. Historical standard deviation is 22. I thought it was a fade (vix=22+ not a bear market).
 
tradingjournals said:
Which delta (underlying, strike, expiration, etc)? The point was that selling calls on VIX was viewed by others as a stupid trade, and I thought it was a smart one.
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Market makers that bought these options from him also made money, so they are not so stupid after all. Thats the wierd thing about options - both buyer and sellers can make money or both of them could lose money.
 
Wouldn't call that a smart trade or a smart dude , no new here , a typical high win rate strategy , one miss and he will pay everything back and much more ...
 
PoundTheRock said:
I apologize if this has been posted already, but why do I get the feeling that we are going to blow up through 22 on the VIX by the third week of this month? Ballsy trade considering that VIX ETNs were down >99% before this recent spike. God bless this dude.

http://finance.yahoo.com/news/record-bet-trader-sells-18-180335585.html
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VIX is now at 14.34 down from the absolute top (~22) which took place when this thread started. The dude nailed them.
 
I think everyone should just follow these large betters. I mean it doesn't hurt right?

If the guy is willing to bet 18 million on something. You should be willing to throw out $100 in a bet.

Just as long as you're not the worst one off, you're okay.

Whoever this guy was, damn, 18 million banked.
 
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