Decline in U.S. Stocks Pays Options Traders 75% Profit on VIX

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Description:  The biggest sell-off in the Standard & Poor’s 500 Index since March is rewarding options traders who bet on a surge in volatility with gains of 75 percent. Source: Bloomberg.com Date: 01/23/2010 Link: http://www.bloomberg.com/apps/news?pid=20601103&sid=aZOPq7yDKhng Questions for discussion: What sort of risk is involved with these instruments? Who would be interested in them? Do you… Read more »