Mystery Option Buyer Nets Fast $12 Million Gain on Stock Slide.

An investor who purchased call spreads on the Cboe Volatility Index (VIX) last Friday has made a significant gain of around $12 million as the S&P 500 Index experienced a sharp decline and the VIX surged. The investor spent nearly $9 million on 350,000 call spreads to protect against a potential increase in volatility in September. The call spreads, which were initially bought for 25 cents each, were later sold for around 60 cents as the VIX rose. It is unclear whether the buyer sold the position, but the potential profit stands at approximately $12.25 million. [Extracted from the article]