‘50 Cent’ VIX Trader Returns as Volatility Hedging Back in Vogue
- Comeback follows a year when tail protection failed to work
- Demand for protection rises as investors boost stock exposure
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The “50 Cent” trader, who made a splash in the options market years ago, is likely back with another big bet on stock volatility.
In a transaction late Tuesday, someone paid 50 cents each for 100,000 call contracts, worth $5 million, betting that the Cboe Volatility Index will surge to 50 in May. Another purchase at the same strike price and expiry was fired out Wednesday, with 50,000 contracts snapped up at 51 cents apiece for $2.6 million in total.