‘50 Cent’ Grabs Even More Protection Against U.S. Stock SelloffBy
Trading patterns in options markets suggest the volatility trader known as “50 Cent” is back to the grind.
At 10:32 a.m. in New York, 50,000 March VIX calls with a strike price of 25 were purchased at 49 cents apiece.
On Friday, 50,000 March VIX 24 calls were purchased for the same price. These options would gain in value on a spike in the Cboe Volatility Index, also known as the VIX.
In stocking up on options that would help shelter a portfolio of risk assets from any market storm, this volatility buyer is seemingly taking a page out of “The 50th Law,” a book authored by Curtis Jackson III -- that is, “50 Cent” the rapper -- and Robert Greene:
“Every negative is a positive. The bad things that happen to me, I somehow make them good. That means you can’t do anything to hurt me.”