‘50 Cent’ Profited From Volatility Jump, Wells Fargo Says
- In a change from 2017 strategy, the trades are being monetized
- Chintawongvanich points to heavy VIX option action on Friday
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The options player known as “50 Cent” -- or someone using a similar trading strategy -- has profited from a flurry of bullish volatility bets over the last two weeks, according to Wells Fargo & Co.
Since mid-January, there has been an increase in purchases of bullish call options on the Cboe Volatility Index for around 50 cents each. That’s a trade reminiscent of the original “50 Cent” strategy in 2017 -- so called as a play on the stage name of rapper Curtis J. Jackson III -- although this time the buyer has already taken profits on the trade, according to Wells Fargo’s Pravit Chintawongvanich.