Bizarre volatility bet in the options pits is a head scratcher ahead of Fed rate decision

Bizarre volatility bet in the options pits is a head scratcher ahead of Fed rate decision

The biggest trade in options on the Cboe VIX Index Tuesday was an unusual $6 million purchase of deep, deep in-the-money-puts.

STOCK MARKET: Bizarre volatility bet in the options pits is a head scratcher ahead of Fed rate decision

The biggest trade in options on the Cboe VIX Index Tuesday was an unusual $6 million purchase of deep, deep in-the-money-puts that might be an unusual interest-rate play ahead of Wednesday’s highly-anticipated Federal Reserve rate decision. Around 10 a.m. Chicago time, someone purchased 563 110-strike VIX puts expiring Oct. 21 for $5.1 million, as well as $1.2 million of the 130-strike puts expiring Nov. 18, the scheduled release date for next m…

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Cboe VIX index sees $6M unusual put trade ahead of Fed rate decision

The $6M VIX put trade suggests confidence in market stability post-Fed decision, highlighting strategic positioning amid event-driven volatility.