For a limited time, you can wager on a stock market selloff for a low, low price.
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The market is baiting copycats of the mystery trader called '50 Cent' (VIX)
Volatility is so subdued that VIX call contracts betting on a near-term increase are the cheapest since 2014.
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The lowest price since 2014, in fact.
The trade in question is the purchase of contracts wagering that the CBOE Volatility Index will reach 14 over a 13-day period — in this instance, ahead of May 14 expiration.
The so-called S&P 500 fear index finished last week at 10.82, about 40% below its bull market average, and briefly fell below 10 on Monday.
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Also known as the VIX, the index in question is a
At about 50 cents a pop, the aforementioned VIX call options expiring in 13 days have only been this cheap on a couple of occasions since the start of 2011, and not in three years, according to data compiled by Macro Risk Advisors. While the firm doesn't normally recommend buying volatility just because of low prices, they think it's more than reasonable right now.
"We have seen the VIX jump nearly instantly from extremely low levels to 20-plus," Pravit Chintawongvanich,
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