- A trader just rolled over a massive volatility bet that could pay out $US260 million if all goes according to plan.
- The wager is on a large increase in the VIX, which serves as the stock market’s fear gauge and has been sitting near record-low levels for months.
The market’s foremost volatility bull has extended his bet that the VIX index will dramatically increase with the bet now expiring in February.
The investor is already assumed to have lost $45 million dollars on the gamble.
The question arises, does this investor 1. Know something that the rest of the market doesn’t, 2. Is attempting to hedge a strong bull position or 3. Has balls of steel and a taste for risk?