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The Volatility Buyer Known as '50 Cent' Just Had a Huge Payday

  • Fiddy’s P&L showed gains of about $27 million, MRA estimates
  • Volatility index rose by most since Sept. 9 on Wednesday
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The Short Volatility Trade Takes a Hit

He’s been patiently waiting for the VIX to explode, and now that it has, his calls will get rolled on.

The mysterious volatility buyer or buyers dubbed “50 Cent” because of their propensity for buying large blocks of VIX call options priced at roughly a half-dollar each, had their best day of 2017 on Wednesday. The CBOE Volatility Index, commonly known as the VIX or fear index, surged by nearly five points on Wednesday to 15.59, its biggest jump since Sept. 9.