Trader Bets Big on VIX Spike Hours Before Blowout Jobs Report
In the hours before the US jobs report’s release, a trader or traders bought more than 50,000 call options on the VIX.
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At least one trader correctly anticipated the surprising jump in US payrolls Friday.
In the hours before the widely anticipated US jobs report, a trader or traders bought more than 50,000 call options on the Cboe Volatility Index — also known as the VIX or the stock market’s “fear gauge” — betting that a strong report would push stocks lower and send investors looking for protection. The one trade amounted to almost 6% of the entire day’s average volume for all options and attracted attention as unusually big for overnight session.