Wednesday 24 May 2017

The mysterious trader "50 cent" made $27 million profit for a day from VIX (1)

The mysterious US trader with options - nicknamed "50 cent" - has earned strong earnings after the sharp rise in volatility on Wednesday, according to the financial institution Macro Risk Advisors.
The trader, at least on paper, has earned $27 million, according to Pravit Chintawangvich, head of the option trading unit at the institution.
The VIX Index is one of the most widely watched indicators and a barometer of expected market volatility in the short term. On Wednesday, the index ended with an increase of 4.94 points, or its biggest daily increase since September.
The strong rise in the indicator has gravely favored the mysterious "50 cent" trader, who has periodically bought call-based options worth about 50 cents.
Index-based call options are pledged to raise the asset that is tied to a market sale.


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