Incredible story from the New York Times: VIX trader Seth Golden turned $500,000 into $12 million and claims to have seed investors for a $100 million hedge fund.
Shorting volatility (all the various ETFs based on VIX futures) has become a popular strategy with both retail traders and institutions. There have been warnings that this trade is getting quite crowded. This article has some quotes that will fuel those calls.
Mr. Golden, who is 40, lives in a suburb of Ocala, Fla. Since he has been shorting VIX, he says his net worth has gone to $12 million from $500,000 in about five years.
Now, he is starting a hedge fund dedicated to wagering against the VIX. Investors, he says, have been pounding on his door to get in early, offering him $100 million for starters.
Full article here: Day Trading in Wall Street’s Complex ‘Fear Gauge’ Proliferates
And you can find Seth here: Are We Shorting Volatility And How
And on Twitter: Seth Golden