An optimistic jobs report is helping stocks recover from this week's brutal sell-off, and helping investors shrug off onrushing recession fears as unemployment hits a new 50-year low and payrolls rise by a better-than-expected 136,000.
If the index were to remain right in that sweet spot, it would certainly be welcome news for one options trader who placed a big bet on exactly that scenario playing out, as Optimize Advisors President Michael Khouw said Thursday on "weekly options in the VIX were trading quite a lot," said Khouw, "I saw a seller of 7,500 of the 28-strike calls to buy the 16-strike puts."