3 ms·
By buying a "put" he is wagering that the price will fall. The more the market crashes, the higher the value of the put.
by lee 7y ago
By buying a "put" he is wagering that the price will fall.
The more the market crashes, the higher the value of the put.
- pheug 7y agoThe bulk of that profit came from volatility spike, rather than simple directional price difference between strike and underlying ("delta"). VIX (https://finance.yahoo.com/quote/%5EVIX https://finance.yahoo.com/quote/%5EVIX) was at 14-15 just a month ago and now at 65 - one of the highest ever! What a time to be alive after years of suppressed volatility! Both calls and puts increase in value when volatility increases.