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

[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

 

[Overnight]

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

Paywall. I suppose they bought outright calls. Whomever wrote those calls just got free zero-risk monies.

 

[mervyn]

Is it 50 cents again?

 

[Sergio123]

Sure it is. Volmageddon happens any day now.

 

[newwurldmn]

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

Risk manager trade.

 

[murray t turtle]

Is it 50 cents again?

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

 

[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

 

[cesfx]

Risk manager trade.

An armageddon hedge?

 

[newwurldmn]

An armageddon hedge?

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

 

[cesfx]

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

Oh wow... ok, thanks.