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stout
Arizona Fan
Hermosa Beach
Member since Sep 2006
138097 posts

Florida Man Who Raised $100 Million To Short The VIX Likely Returning To Old Job At Target
quote:

Each morning, at the market’s open, Seth M. Golden, a former logistics manager at a Target store, fires up the computer in his home office in northern Florida and does what he has done for years: Put on bets that Wall Street’s index of volatility, the VIX, will keep falling.

That’s the opening line from an article that appeared in the New York Times on August 28, 2017, and it should have been a warning.

To be sure, it spawned its fair share of derisive memes that spread like wild fire among market participants who understood how patently absurd the idea of former Target managers shorting vol. for a living really was, but it should have set off louder alarm bells. That is, this should have been flagged by regulators as something that was inherently dangerous.

Now I’m not exactly sure what could have been done, because the horse left the proverbial barn on this years ago, but if anyone outside of sellside derivatives desks had taken the time to actually do the math and connect the dots on the type of systemic risk the doomsday vehicles used by Seth and his ilk were embedding in markets, it would have been immediately clear that this was bound to go horribly awry one day with God only knew what consequences.



Interesting read


YoungManOldMan
George Washington Fan
Member since Dec 2017
1882 posts

re: Florida Man Who Raised $100 Million To Short The VIX Likely Returning To Old Job At Target
I disagree with him. People have a right to be dumb asses. I don't need somebody regulating my dumbassery.


southernelite
McNeese State Fan
Dallas
Member since Sep 2009
49944 posts

re: Florida Man Who Raised $100 Million To Short The VIX Likely Returning To Old Job At Target
Check this moron

quote:

As bad an idea as buying $XIV was, if I had bought the sister ETN $TVIX to express the same trade I would be up 100 percent on the idea tonight.


He doesn’t even understand what XIV tracks, apparently.


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Thib-a-doe Tiger
LSU Fan
LaTour and in BRgetthenet's head
Member since Nov 2012
26366 posts

re: Florida Man Who Raised $100 Million To Short The VIX Likely Returning To Old Job At Target
Well you've made that pretty obvious


YoungManOldMan
George Washington Fan
Member since Dec 2017
1882 posts

re: Florida Man Who Raised $100 Million To Short The VIX Likely Returning To Old Job At Target
Pretty obvious about what? That I ask questions? That I seek feedback from the board?

I've been pretty transparent about what I know and don't know, thank you very much. So take your condescending response to nonexistent narcissism and shove it.


foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
38819 posts

re: Florida Man Who Raised $100 Million To Short The VIX Likely Returning To Old Job At Target
I just want to know how this guy raised $100 million.


Thib-a-doe Tiger
LSU Fan
LaTour and in BRgetthenet's head
Member since Nov 2012
26366 posts

re: Florida Man Who Raised $100 Million To Short The VIX Likely Returning To Old Job At Target
Sheeple


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12
southernelite
McNeese State Fan
Dallas
Member since Sep 2009
49944 posts

re: Florida Man Who Raised $100 Million To Short The VIX Likely Returning To Old Job At Target
Dude needs an episode of American Greed
This post was edited on 2/6 at 5:31 pm


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40
LSUcam7
SRB FL
Member since Sep 2016
744 posts

re: Florida Man Who Raised $100 Million To Short The VIX Likely Returning To Old Job At Target
Would be super curious to know how much was cost basis and how much he garnered from individual investors. Either way, impressive.

Moral of the story? TGT is a stellar retail name.


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LSUcam7
SRB FL
Member since Sep 2016
744 posts

re: Florida Man Who Raised $100 Million To Short The VIX Likely Returning To Old Job At Target
Same story from NYTimes

quote:

But I was never nervous — so today I just sat back, ate some popcorn and cashed in my profits.”




quote:

Since he has been shorting VIX, he says his net worth has gone to $12 million from $500,000 in about five years.


...and it went from $12mm to $150 in less than 24 hours.


quote:

The best part of his day, he says, is picking up his toddler daughter from day care.


Damnit. Just damnit.

quote:

Now, he is starting a hedge fund dedicated to wagering against the VIX.


No. No he’s not.
This post was edited on 2/6 at 5:47 pm


Thib-a-doe Tiger
LSU Fan
LaTour and in BRgetthenet's head
Member since Nov 2012
26366 posts

re: Florida Man Who Raised $100 Million To Short The VIX Likely Returning To Old Job At Target
quote:

Pretty obvious about what? That I ask questions? That I seek feedback from the board?

I've been pretty transparent about what I know and don't know, thank you very much. So take your condescending response to nonexistent narcissism and shove it.



You’ve been pretty chippy about things you self admit to knowing little about. There are people here who know a lot (more than myself) that you should listen to
This post was edited on 2/6 at 5:57 pm


brass2mouth
LSU Fan
NOLA
Member since Jul 2007
16030 posts

re: Florida Man Who Raised $100 Million To Short The VIX Likely Returning To Old Job At Target
I don't understand why you don't cash out if you went from 500k to 12mm


LSUcam7
SRB FL
Member since Sep 2016
744 posts

re: Florida Man Who Raised $100 Million To Short The VIX Likely Returning To Old Job At Target
Credit Suisse cashed out for him


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20
LSUtoOmaha
LSU Fan
Nashville
Member since Apr 2004
24387 posts

re: Florida Man Who Raised $100 Million To Short The VIX Likely Returning To Old Job At Target
quote:

That is, this should have been flagged by regulators as something that was inherently dangerous.


This statement irks me so much. Shorting Vix is a useful tool if it’s part of a bigger portfolio. You don’t just go long SVXY and think the 100% a year profits will continue.


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41
foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
38819 posts

re: Florida Man Who Raised $100 Million To Short The VIX Likely Returning To Old Job At Target
Well, it looks like he might not have ever really gotten $100 million. From the original NYT article:

quote:

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.


This was written on August 28 last year. That isn't much time to get a real hedge fund started with all the filings and approvals that are required.


Salt Lick
Kentucky Fan
Bath County
Member since Aug 2016
1646 posts

re: Florida Man Who Raised $100 Million To Short The VIX Likely Returning To Old Job At Target
what did this guy exactly do


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sneakytiger
LSU Fan
Member since Oct 2007
2168 posts

re: Florida Man Who Raised $100 Million To Short The VIX Likely Returning To Old Job At Target
Vol has been at historic lows right? Who decides to short that? What is the trade?


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KillTheGophers
Texas Fan
Nawtheastlouisiana
Member since Jan 2016
2755 posts

re: Florida Man Who Raised $100 Million To Short The VIX Likely Returning To Old Job At Target
All I have is a double face palm


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matthew25
Ole Miss Fan
Member since Jun 2012
9425 posts

re: Florida Man Who Raised $100 Million To Short The VIX Likely Returning To Old Job At Target
Thib a doe - cool your jets. We try to act civil on this board - the best on TigerDroppings.

I know you are new here, but tone it down.

We all learn something new here everyday.


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51
kciDAtaE
Member since Apr 2017
2835 posts

re: Florida Man Who Raised $100 Million To Short The VIX Likely Returning To Old Job At Target
quote:

Now I’m not exactly sure what could have been done, because the horse left the proverbial barn on this years ago, but if anyone outside of sellside derivatives desks had taken the time to actually do the math and connect the dots on the type of systemic risk the doomsday vehicles used by Seth and his ilk were embedding in markets, it would have been immediately clear that this was bound to go horribly awry one day with God only knew what consequences.


That’s a very long sentence


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