So far, 2023 has seen an equity bull market with low volatility, but whispers on Wall Street suggest an audacious move that could rival Michael Burry’s famous “Big Short.”
In a jaw-dropping play, a trader recently shelled out $30,000 on a bet that hinges on the VIX index hitting 180 by February 2024.
As of now, the VIX, often dubbed the “fear gauge,” is trading at a mere 15, implying a staggering 1,100% surge would be needed for the bet to pay off.
Yahoo Finance data reveals that the trader purchased 5,035 VIX options with a strike price of 180 and an expiration date of Feb. 14, 2024, at a cost of $0.06 per contract.
This contrarian move raises eyebrows, especially considering that just last week, the VIX index sank to the 13 level, marking one of the lowest points of the year. Currently, it’s at its weakest level since December 2019, prior to the start ...Full story available on Benzinga.com
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