‘50 Cent’ VIX Trade Just Paid Off to the Tune of $200 Million

Hate it or love it, the underdog’s on toppatiently waiting for the VIX to explode has finally been rewarded in a big way.

Among the biggest winners from last week’s turmoil is the mysterious buyer of out-of-the-money options tied to the Cboe Volatility Index priced at about 50 cents apiece.

Pravit Chintawongvanich, head of derivatives strategy at Macro Risk Advisors, estimates that the trader dubbed “50 Cent” (a play on the rapper known as “50 Cent,” Curtis Jackson), has made nearly $200 million total on this trade since the start of 2017 — thanks to a swing of $400 million in a single month.

Source: BloombergMarkets

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