VIX Trader Buys $5.1 Million in Calls to Bet on 50% Increase
This article is for subscribers only.
An investor bought $5.12 million in call options that will be profitable if the Chicago Board Options Exchange Volatility Index jumps at least 50 percent in the next four months.
The trader purchased 40,000 April calls on the VIX with a strike price of 22 for $1.28 each, according to Trade Alert LLC. The bullish volatility bet was the biggest single block of options to change hands on U.S. exchanges, the research firm said. The VIX rose 0.8 percent to 15.54 today.