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Mystery Trader Rolls Over Massive VIX Stock Market Bet Into January

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A trader just rolled over a massive volatility bet that could pay out $260 million if all goes according to plan.


The wager is on a large increase in the VIX, which serves as the stock market's fear gauge and has been sitting near record-low levels for months.



The market's foremost volatility bull is at it yet again.

Just over two months after rolling over a humongous wager
that the CBOE Volatility Index,
or VIX, would surge from its subdued levels by December, the volatility vigilante has essentially extended that bet into January.

The so-called rollover carries roughly the same maximum potential payout as before: a whopping $260 million.

And considering the trader lost only a small fraction of that on the wager over the past two months, closing the December trade and pushing it to January allows continued exposure to a huge upside at a relatively small cost, according to a person familiar with the trade.

Considering the VIX's tendency in 2017 situs judi capsa online terpercaya (related web site) to trade near all-time lows, it's a risky bet. The so-called fear gauge is down 7.7% this year, and investors continue to pile into the short-volatility trade
, which has evolved into one of the market's most crowded positions.


About the Author

Sidney
Name: Stefan Sodersten
My age: 40 years old
Country: Germany
Town: Beringstedt
Postal code: 25575
Address: Kastanienallee 17

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