Markets News Stocks 

Mystery trader ’50 Cent’ made $21 million from last Thursday’s stock market meltdown

“So what did 50 Cent do on Thursday, having finally reaped some fruits of his long-volatility labor?” writes Joe Ciolli for businessinsider.com. While the VIX has settled somewhat since Thursday, slightly paring its huge spike, there’s a growing chorus of market experts forecasting more turbulent times ahead. Source: businessinsider.com Share This:

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Markets News 

When all hell breaks loose in the markets, these securities go higher

“The iShares Gold Trust and the SPDR Gold Shares seek to track the price of gold, the oldest safe haven out there” writes John Melloy for cnbc.com. If they want a place to shelter from the storm, these securities have a track record of rising during times of market tumult, according to data cruncher Kensho.The market’s fear gauge had been unusually dormant, staying mostly below 12 for the last four months and even diving last month to its lowest level ever.Investors this week got their first taste of market pandemonium…

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Futures News 

All-time record options bets on volatility spook Wall Street over leverage risk

“The CBOE announced VIX options volume hit 2.56 million contracts on Thursday, a record for a single day” writes Dimaggio Kalish for cnbc.com. Options experts are saying Thursday’s record volume in volatility derivatives bets may signal a dangerous problem with the size of volatility-linked trading products.The focus is on the CBOE volatility index, a key measure of market expectations for near-term volatility as conveyed by the price of S&P 500 index options.One accomplished options trader said the dramatic one-day VIX surge Thursday likely stemmed from traders being forced to close…

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Markets News Stocks 

Gundlach’s ‘free money’ trade is already paying off

“The trade, Gundlach told Reuters, was “like free money.”” writes Akin Oyedele for businessinsider.com. “I think going long the VIX is really sort of free money at a 9.80 VIX level today,” Gundlach said, referring to the CBOE’s Volatility Index.This call is less of a wager on a stock market drop, and more of a bet that the quietest market in decades would become more volatile, Gundlach said.”I believe the market will drop 3% at a minimum sometime between now and December,” Gundlach said.The CEO of DoubleLine Capital who’s sometimes described…

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Markets News Stocks 

Wall Street’s ‘fear gauge’ nears 3-month high as ‘fire and fury’ sparks stock-market slump

“The CBOE Volatility Index VIX, +32.13% or VIX, jumped 40% at was recently trading near its session highs at 15.49” writes Mark Decambre for marketwatch.com. Because stock prices sink faster than they rise, the VIX is often viewed as a proxy for risk in the broader equity market.Indeed, U.S. stocks, which tend to move inversely with the VIX, were trading firmly lower. Source: marketwatch.com Share This:

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Markets News Stocks 

How Trump’s threat of ‘fire and fury’ is rattling stock-market calm

“On Wednesday, the stock market looked set to add to its losses” writes Mark Decambre for marketwatch.com. This month, however started with many investors living in La La Land, as seen by extremely low volatility and extremely high complacency despite high valuations and mounting political uncertainty. Source: marketwatch.com Share This:

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Markets News Stocks 

Billionaire bond guru Gundlach predicts he will make 400% on his bet against the stock market

“I’ll be disappointed if we don’t make 400 percent on the puts, and we don’t even need a big market decline for that to happen,” Gundlach said on CNBC’s “Halftime Report.”” writes David A for cnbc.com. He said that in his firm’s analysis, volatility is so low that they can make a big return by buying put options — bets for a decline — on the S&P 500 for December. It’s more of a bull call on volatility,” he said. Source: cnbc.com Share This:

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Jeff Gundlach is betting that markets will go crazy in the next 5 months

“NEW YORK (Reuters) – Jeffrey Gundlach’s DoubleLine Capital purchased some five-month put options on the Standard & Poor’s 500 Index a couple days ago as the CBOE Volatility Index fell to its lowest since December 1993” writes Jennifer Ablan for businessinsider.com. “We lost money the first day we put on the trade, but now we are doing great.This is like free money,” Gundlach, who is known on Wall Street as the Bond King, said in a telephone interview on Thursday. So the S&P puts are going long volatility.”.  Source: businessinsider.com…

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Gundlach’s DoubleLine purchased five-month put options on S&P 500

“NEW YORK (Reuters) – Jeffrey Gundlach’s DoubleLine Capital purchased some five-month put options on the Standard & Poor’s 500 Index a couple days ago as the CBOE Volatility Index fell to its lowest since December 1993. “We lost money the first day we put on the trade, but now we are doing great” reports businessinsider.com. This is like free money,” Gundlach, who is known on Wall Street as the Bond King, said in a telephone interview on Thursday. So the S&P puts are going long volatility.”.  Source: businessinsider.com Share This:

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Op-Ed: Investors may continue to trade geopolitics, but the landscape is shifting

“In the last 12 months, there has been a shift in the way financial markets react to news” writes unknown author for cnbc.com. Financial markets were shaken, investors lost cash while major central banks scrambled to put together contingency plans to limit the spread of the crisis.But with market volatility at its lowest in decades and low-yielding traditional assets, investors remain ambiguous on where to put their money.There have been a number of instances in the past year that have shown geopolitical events driving market performance.Nine years ago when I…

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