Shrewd trader makes fortune riding waves of market volatility

AFP Photo

As panic gripped stock market investors during a bearish dip in fortunes last week, one opportunistic trader made a nearly $400 million profit by betting on its upturn.

The trader is known by the name '50 cent,' due to his small market buy-ins, some as low as half a dollar, on the Cboe Volatility Index, or VIX, the Financial Times and Business Insider said.

'50 cent' made his purchases on a hunch that the low volatility environment would prove short-lived – and his instincts were correct.

The VIX, published by the Chicago Board Options Exchange, measures the stock market's expectation of volatility based on S&P 500 index options. Last week, amid a global equity selloff, the VIX jumped to its highest level since June 2016's Brexit referendum, marking its largest ever percent change.

In a matter of weeks, the trader's fortunes had swung from a $197 million loss to a $183 million profit, according to Macro Risk Advisors.

The FT identified '50 cent' as London-based asset manager Ruffer LLP last year, based on four bank sources who confirmed trades. Ruffer LLP has not yet commented on the report.

Bu web sitesinde çerezler kullanılmaktadır.

İnternet sitemizin düzgün çalışması, kişiselleştirilmiş reklam deneyimi, internet sitemizi optimize edebilmemiz, ziyaret tercihlerinizi hatırlayabilmemiz için veri politikasındaki amaçlarla sınırlı ve mevzuata uygun şekilde çerez konumlandırmaktayız.

"Tamam" ı tıklayarak, çerezlerin yerleştirilmesine izin vermektesiniz.