US equity option trader, dubbed “50 cent”, made net $183m last week

Author: Eamonn Sheridan | Category: News

Reuters  on a trader in the US who has been a persistent buyer of VIX call options, named "50 cent" because of a tendency to pay a fixed price of 50 cents for blocks of VIX call options.

Pravit Chintawongvanich, head of derivatives strategy at Macro Risk Advisors in New York, reckons fiddy made about $400 million mark-to-market this month
  • & a total profit of about $183 million on the options position ... likely took losses elsewhere, since the VIX options position was probably a hedge against potential losses in a much larger portfolio, rather than a naked bet on higher volatility.

Cool, but there is only one 50 cent