VIX Surge to 150 Is Day’s Biggest Options Bet for ‘Fear Gauge’
- Trader pays $950,000 for 50,000 options wagering on VIX spike
- Bet could be ‘cheap way to hedge’ against a market crash: Beth
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Uncertainty about the upcoming jobs report pushed the Cboe Volatility Index, or VIX, to close above 30 on Thursday. And someone is wagering that it won’t stop there.
Shortly before the market closed, a trader bet that the VIX could increase to 150 by late March. Through a series of block trades, the trader -- most likely one person, according to market participants -- bought 50,000 call options, paying $950,000. It was the most-active VIX options contract Thursday.