Mysterious trader made $200M last week as market blew up

[jpak]

https://www.msn.com/en-us/money/markets/mysterious-trader-made-dollar200m-last-week-as-market-blew-up/ar-BBJ2I3a

Hate it or love it, the underdog’s on top: Patiently waiting for the VIX to explode has finally been rewarded in a big way.

Among the biggest winners from last week’s turmoil is the mysterious buyer of out-of-the-money options tied to the Cboe Volatility Index priced at about 50 cents apiece.

Pravit Chintawongvanich, the head of derivatives strategy at Macro Risk Advisors, estimates that the trader dubbed “50 Cent” (a play on the rapper known as “50 Cent,” Curtis Jackson), has made nearly $200 million total on this trade since the start of 2017 -- thanks to a swing of $400 million in a single month.

"At one point, ‘50 Cent’ became ‘30 Cent,’ scrimping on his usual VIX option purchases, unwilling to pay up for the 50 cent VIX options that were his namesake," Chintawongvanich wrote. "But in early February, when it seemed like Fiddy’s fortunes could go no lower, it came: redemption."

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[BSdetect]

1. Hope he pays about 50% in tax