Mystery Option Buyer Nets Fast $12 Million Gain on Stock Slide
- VIX index spiked from less than 16 to almost 22 as stocks slid
- Late-Friday VIX call-spread buyer appears to have sold out
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The sense of calm in the US stock market was disrupted Tuesday as the S&P 500 Index plunged more than 2% and the VIX exploded higher. That’s rewarded a late-Friday options buyer with some $12 million in paper gains.
The spike in volatility came as the S&P 500 index was dragged down by a selloff in technology stocks with AI giant Nvidia Corp.’s market capitalization dropping by the equivalent of Chevron Corp.