It looks as if the swashbuckling volatility trader known as “50 Cent” is already plotting his comeback.
Known for his consistent purchases of bite-size Cboe Volatility Index (VIX) options — usually costing about 50 cents — the trader has historically positioned himself to profit from market turbulence.
But he took a self-imposed leave of absence after he was able to cash in on his long-standing bets back in February. That was immediately after a 10% correction rocked all major US indexes, sending the VIX skyrocketing and allowing 50 Cent to pocket more than $183 million on a mark-to-market basis, according to data compiled by Macro Risk Advisors.
Seemingly unable to rest, 50 Cent has been back up to his old tricks this week. It started early Tuesday, with the purchase of 50,000 call options with strikes prices of 28, bought at $0.50 and $0.51 apiece. Then, on Wednesday morning, an identical trade was made at a price of $0.49.