A Huge Player in VIX Options Just Changed Its Buying Behavior
'VIX Elephant' Hedges Against Increase in Volatility
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Trading patterns associated with the new kingpin in volatility options resurfaced on Wednesday, hours before concerns about trade protectionism roiled markets.
The so-called "VIX Elephant" -- the moniker bestowed upon the options giant by Macro Risk Advisors head of derivatives strategy Pravit Chintawongvanich -- traded more than 2 million contracts, closing out positions in January VIX options and rolling the trade over to same-strike options that mature the following month.