Having been able to sell back his protection purchases for a major profit amid Trump’s impeachment panic two weeks ago, the mysterious options trader ’50-cent’ has been spotted once again – loading up on cheap bets on a big blow-out.
As Bloomberg reports, the volatility buyer or buyers dubbed “50 Cent” appears to have returned to the market again on Monday, following Friday’s trades as the VIX continues to trade below 10.
As the chart above shows, one block of ~74.9k July $18 calls were bought for 50c per contract vs open interest of ~80k, with VIX testing back down towards Friday’s lows). Today’s total call volume is outpacing put volume by ~3.7 to 1.
Reports of ’50-cent’ facing major losses, as his options ebbed away to maturity have been interspersed with notable spikes in volatility (which as the chart above shows, we quickly smacked back down to record lows).
via http://ift.tt/2rLTJxt Tyler Durden