A US hedge fund specializing in natural gas profited from an unusually large bet that volatility would ease in Europe, showing the growth of the options market after banks and hedge funds piled in following Russia’s invasion of Ukraine.
Miami-based Statar Capital LLC doubled its €350 million investment buying €50 put options in early November, according to a people familiar with the situation who asked not to be named because the matter is private. The fund closed the position throughout February in line with declining prices in the region that have also led to lower volatility. The profit has led traders to call it ‘the trade of the year’.