Huge VIX trade! Imagine what the next few months will look like if this guy is half right

Someone is betting big that the U.S. stock market is on track for the kind of turbulence not seen since the global financial crisis.

Trading in call options on the Cboe Volatility Index, known as the VIX, outweighed puts by more than 2-to-1 on Friday with the index at its lowest level since July as stocks rallied. 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.

www.bloomberg.com/news/articles/2019-10-25/big-vix-options-trade-braces-for-2008-like-volatility-surge

We are primarily funded by readers. Please subscribe and donate to support us!
Views:

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.