I am curious what are you paying per contract for SPX options with your broker?
Interactive Brokers is charging $1.55 and $1.64 per contract, depending on the premium amount.
The 50 Cent CBOE Volatility Index (“VIX”) trader has returned with a big bet.
This trader – whoever they are – is known for buying call options on the VIX for around $0.50 per contract. (Remember, when someone buys a call option, they profit if the underlying asset rises in value.) They bet that volatility will rise, which often coincides with stocks falling.
And earlier this week, we got clues that 50 Cent may be back…
The first sign was the purchase of 100,000 call contracts on the VIX for $0.50 each. Then, a day later, another 50,000 contracts went through at $0.51. That was the confirmation we needed that this trader is active again.
And want to know the total value of these trades? About $7.6 million. That’s huge!
But we can learn even more by considering the specifics of this trade…
The options purchased have a $50 strike price and expire in May. Right now, the VIX is hovering around 19. That means the 50 Cent trader expects volatility to more than double by May. This trade could be very profitable even if volatility were to quickly jump to 25 or 30.
Expired: $SPX Feb 17th 3965/3985-4165/4185 condors , sold yesterday for 1.30.
Best week of the year so far: 4 trades, +5.50.
No trade for Tuesday due to my work schedule. Have a great 3-day weekend y’all.
$AMZN 108 call
$AMZN 103 call
$SI 19 call
$SHOP 56 call
$OKTA 67 put
$KR 43.5 put
$MO 47 call
$PFE 43 call
$SPX STO 2/21 PM 4000/3980 – 4150/4170 at $1.15
Today’s trade STO 3950/3970 – 4170/4190 PM will expire STO at $1.00
$U STO 2/24/2023 34 put at 1.13
$CVX BTC 2/17 31 put at .05. STO at .25
$PLL BTC 2/17 65 put and STO 3/17 65 put at added credit of $3.60. Stock down today due to expectation of Lithium demand in China.
$SHOP BTC 2/17 47.5 put and STO 2/24 47 put at even.
SPX, BTC the 4010/4030-4190/4210 at 1.10, Sold at 1.20 yesterday, That is all I was waiting for so I am off to the gym.
Back by popular demand, in observance of Presidents’ Day (and trading holiday) on Monday, it’s the Hall of Revolving Presidents. Click “Home/Refresh” or refresh your browser to change the featured President.
STO SPY Mar03’23 390 PUT @1.50
STO SPY Mar03’23 395 PUT @2.00
Rolled FEB. 17, 405 put to FEB 24 400 put for a credit of .60 cents.