VIX Call Buying Explodes in Wave Evoking Memories of `50 Cent'
- Big buyer hedging against U.S. stock rout over the next month
- Put/call ratio hits the lowest level in more than four years
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A big buyer is accumulating protection against a major sell-off in U.S. stocks over the next month.
More than 570,000 call options tied to the Cboe Volatility Index -- known as the market’s “fear gauge” -- have traded as of 2:25 p.m. on Wednesday in New York, compared to less than 50,000 put options. That would leave the put/call ratio at its lowest in more than four years, prior to China’s shock devaluation of the yuan.