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A comment on S&P 500 triggers 15-minute trading halt for the second time this week. Parent comment

Re:S&P 500 triggers 15-minute trading halt for the second ti... by lee on Thursday March 12, 2020 @11:02AM (#22557563)
By buying a "put" he is wagering that the price will fall.

The more the market crashes, the higher the value of the put.

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Re:S&P 500 triggers 15-minute trading halt for the second ti... by pheug on Thursday March 12, 2020 @02:03PM (#22559764)
The 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) 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.

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