Mr. 50-cent VIX is likely cashing in today. On January 26, Mr. 50-cent bought 50,000 strike 24 volatility options for 49 cents each. I commented on the trade at the time in Mr. 50-Cent VIX Strikes Again.​

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"Everyone in the Room is Short Volatility"

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Volatility was once just a measure. Now it's an income-generating product. Everyone is selling it says Pennant Capital.

For details on the short volatility madness, please see "Everyone in the Room is Selling Volatility".

Short volatility traders are getting carted out today. I would not be surprised if a number of hedge funds blew up today with margin calls.

Mike "Mish" Shedlock

Mr. 50-Cent VIX Nets $200 Million

Mr. 50-Cent Vix made $400 million on his recent bet, but he was down $200 million for 2017.

Mr. 50-Cent VIX Strikes Again

A person or fund has been making enormous bets on VIX calls priced near 50 cents. The CALL volume spiked again Friday.

VIX Elephant Poised to Lose $20 Million Escapes With $2 Million Loss

A VIX spiked today enabled a trader known as the "50 Cent Elephant" to escape his VIX bet with minimal losses.

"Mr. Practical" Chimes in on Volatility, Liquidity, and Sentiment

A long-time Minyanville friend who wrote under the pen name "Mr. Practical" pinged me with some thoughts on volatility.

Crypto Bloodbath Amid Widespread Equity and Bond Carnage: VIX Breakout

The cryptocurrency selloff continued along with strong pullbacks in equities and bonds. The VIX is on the rise.

S&P Down, Nasdaq Down, DAX Down, Bitcoin Down: VIX Down Too, Why?

The equity markets are taking another hit today. Curiously, so is the VIX.

Volatility Nowhere in Sight: VIX Posts Record Low Quarter

Is this the calm before the storm or has the Fed managed to crush volatility forever?

Expect a Volatile Future: Short-Volatility Funds Flooded With Cash

Stock market volatility is a uni-directional measure. Volatility only rises when stocks decline. Curiously, the futures markets often work in reverse. When precious metals soar, the price of options on futures often rises instead of collapsing.

"Mr. Practical" On Leverage, Options, and Derivative-Fueled Crashes

A Minyanville friend, "Mr. Practical", pinged me with his thoughts on leverage derivative-fueled market crashes.