Tag: Yahoo Finance

‘50 Cent’ Volatility Buying Crops Up After Market Flare-Up Fades

(Bloomberg) -- The volatility buyer dubbed “50 Cent” appears to have resurfaced, buying up market hedges as calm returned in the aftermath of a flare-up in Mideast tensions.Calls on the Cboe Volatility Index, or VIX, with a strike price of 25 that expire on Feb. 20 are the most actively traded VIX option contract as of mid-morning Wednesday, with volumes in excess of 75,000. The biggest trade -- accounting for nearly all of the volume -- was a purchase of 73,601 options at $0.49 apiece shortly after U.S. markets opened.The VIX, a measure of the S&P 500’s 30-day implied volatility derived from out-of-the-money options prices, popularly known as the market’s “fear gauge,” hasn’t touched 25 since Jan. 3, 2019, and has averaged a little above 15 over the past year. It opened nearly 1.5 points higher Wednesday at 15.24 after an Iranian strike on joint U.S.-Iraqi military bases stoked fears of...