A Tiny Hedge Fund Made 8,600% on a Vix Bet

Re:A Tiny Hedge Fund Made 8,600% on a Vix Bet by dynamodispatch on Saturday February 10, 2018 @11:31AM (#16347985)

This isn't news. It happens all the time. During earnings season, whenever there is a news break about pharma,tech,commodity, etc, whenever there is a big political/environment/etc news, and when the market moves.

And 8600% isn't that impressive ( depending on the size of the bet ). Leveraged bets can turn $1K into $1M or $10M overnight.

If you want impressive, go look into the returns in currency trading when the swiss unpegged their franc a few years ago. If you had insider information, you could have turned a few thousands into tens of millions easily.

This is really only news if this tiny hedge fund had insider knowledge. There's nothing really newsworthy about this.

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Re:A Tiny Hedge Fund Made 8,600% on a Vix Bet by alva on Saturday February 10, 2018 @01:27PM (#16348687)

Sounds like they were not leveraged. Any idiot can make super high leveraged bets that will wipe them out if they don't pay off. Your comment suggests a lack of understanding of risk. Max risk of 200k for 17m payoff is VERY impressive.

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Re:A Tiny Hedge Fund Made 8,600% on a Vix Bet by OscarCunningham on Sunday February 11, 2018 @06:26AM (#16352247)

It depends on the odds of it working, of course. 200k/17m is 1.2%, so any idiot can arrange a bet which pays of 17m with 1.2% probability with at most 200k at risk.

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Re:A Tiny Hedge Fund Made 8,600% on a Vix Bet by alva on Sunday February 11, 2018 @04:31PM (#16354941)

Of course they can. My comment was in context of the parent. Suggesting 8600% return isn't that impressive is ludicrous and ignores the downside. Comparing this bet to ultra-leveraged bets is silly.

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