Three weeks ago we introduced the real “50 Cent” – the mystery trader whose pattern of huge, near-daily trades on the VIX is turning heads in the options market.
Not him..
As we detailed previously, Pravit Chintawongvanich, head of risk strategy at Macro Risk Advisors, the huge options buyer known as “50 Cent” shows no signs of slowing down.
“I would categorize them as someone who doesn’t flinch at losing money,” commented Chintawongvanich who flagged the activity in a series of research notes. The money-losing trades in question have been purchases of call options on the CBOE volatility index. These represent bets that market volatility is set to rise, and to a lesser extent, that stocks are set to fall.
Sussing out the actions of an institutional trader based on public information about options trades can be difficult, if not impossible. But this trader made it easier by leaving a clue out in the open. “They have a very particular pattern of buying options,” Chintawongvanich explained Wednesday on CNBC’s “Trading Nation.”
This post was published at Zero Hedge on Apr 22, 2017.
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