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Swashbuckling VIX trader "50 Cent"


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#1 diogenes227

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Posted 15 June 2018 - 12:54 PM

 

It looks as if the swashbuckling volatility trader known as "50 Cent" is already plotting his comeback.

 

Known for his consistent purchases of bite-size Cboe Volatility Index (VIX) options — usually costing about 50 cents — the trader has historically positioned himself to profit from market turbulence.

 

But he took a self-imposed leave of absence after he was able to cash in on his long-standing bets back in February. That was immediately after a 10% correction rocked all major US indexes, sending the VIX skyrocketing and allowing 50 Cent to pocket more than $183 million on a mark-to-market basis, according to data compiled by Macro Risk Advisors.

Seemingly unable to rest, 50 Cent has been back up to his old tricks this week. It started early Tuesday, with the purchase of 50,000 call options with strikes prices of 28, bought at $0.50 and $0.51 apiece. Then, on Wednesday morning, an identical trade was made at a price of $0.49.

 

"50 CENT"


"If you've heard this story before, don't stop me because I'd like to hear it again," Groucho Marx (on market history?).

“I've learned in options trading simple is best and the obvious is often the most elusive to recognize.”

 

"The god of trading rewards persistence, experience and discipline, and absolutely nothing else."


#2 dTraderB

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Posted 15 June 2018 - 01:32 PM

I am following in the his footsteps ... with vastly less lots !

 

I am long VXX @ 31.74    



#3 kssmibotm

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Posted 15 June 2018 - 01:49 PM

Another 27K options were purchased today.



People think the Holy Grail is something looked for but never found. In fact, it is something often found but rarely recognized.