Our Mystery Trader Walked Away with $400 Billion
The recent Stockmarket turmoil that rocked the start of 2018, the causes of for which are still unknown, meant that although stock prices are now recovering and stablising, there were distinct winners and losers. One winner in particular took home $400 million dollars in profit for betting on volatility.
Market Watch notes
As a temporary panic gripped stock market investors during last week’s selloff, one trader turned a loss into almost $400 million in profit thanks to a tiny series of bets on a volatility spike … the VIX trade made profit of close to $400 million for ‘50 Cent’, moving it from a $197 million loss position to a $183 million profit in a matter of weeks. -Anneken Tappe
The total P&L summary of which is:
Source Market Watch.
The trader was identified as Ruffer LLP.
With such a large, confident bet. The question arises, was Ruffer LLP hedging, speculating with a quarter of a billion or in the know? This also comes on the back of a recent report of alleged VIX manipulation.
Source and whole article here.