REUTERS / Mike Hutchings
- Asset manager Ruffer LLP uses 50 cent options contracts to bet on rising market volatility as a hedging instrument.
- The fund says February’s stock selloff is likely to be a tremor and a bigger financial “earthquake” is only months away.
- Ruffer remains positioned to profit from an increase in volatility.
The market meltdown in early February — when US stocks had their biggest one-day fall in six years — proved to be more of a financial tremor, but the threat of an actual earthquake remains.
That’s according to Ruffer LLP — the British asset manager that was revealed to be behind a series of trades last year betting on a rise in market volatility, via the purchase of 50 cent options contracts.See the rest of the story at Business Insider
NOW WATCH: Wall Street’s biggest bull explains why trade war fears are way overblown
See Also:
- MONEY & MARKETS: China’s president moved to ease concerns about global trade — and financial markets love it
- China may be getting ready to deliver some welcomed news to the markets
- GOLDMAN SACHS: 5 stocks will see unusually large moves this earnings season — here’s how to trade them
SEE ALSO: Struggling hedge fund Folger Hill is merging with another fund
