Chapter 236: Only Children Make Choices

Fang Huan Investment Trading Room.
“Currently, whether it's American domestic brokerages, institutional investors, or hot money from around the world, the most concentrated place for funds is here—XIV.”
A researcher pointed to the data on the PowerPoint presentation, reporting rapidly.
“Everyone firmly believes the market will remain stable, so massive amounts of capital are continuously flowing into these inverse VIX products.”
Su Hao quietly reviewed the data hastily compiled by the research department.
All markets have entered a period of stability, which translates to:
There are neither many stocks experiencing significant rises nor falls.
Therefore, those shrewd people on Wall Street 'invented' these inverse VIX products, betting that the market will remain stable, or even that volatility will further decrease.
The group's board of directors probably had the same idea, which is why they wanted to diversify their hundreds of billions into these products.
After all, even traditional safe-haven assets like gold have lost their volatility; leaving money sitting there is practically rotten.
Su Hao's gaze slowly swept over the long list of dazzling derivatives.
Major investment banks and funds were scrambling to enter this market, launching countless products with different packaging but the same essence, all vying for a share of the pie.
However, in his view, every ETF product code on the list, representing "stability," seemed to ignite a violent, distorted flame, as if doused with gasoline.
"What do you think?" he looked up and calmly asked his team, "Are these products reliable?"
"Chairman Su, given the current situation, this is probably the only, and the best, investment option."
Liang Haiyuan, as the representative, spoke first.
"The VIX has never been this stable. Going long doesn't make money, and going short doesn't make money either. Where else can the money go besides piling up here?
The mainstream view on Wall Street is that the VIX index will only go lower in the future."
These so-called inverse products are essentially all shorting "volatility" itself.
They are betting that the VIX index will be even lower than it is now.
"Then... what if it goes up?" Su Hao asked calmly.
"Even if it goes up a little, it should only be a small fluctuation, and the losses are manageable. The overall market trend is stable, and it could fall back at any time."
But what Su Hao saw wasn't a small flame. It was a raging inferno capable of burning everything to ashes!
If red represents a warning, then what does this all-consuming flame represent?
"Suppose, the VIX goes up," Su Hao asked, emphasizing each word, "Are there any corresponding products?"
Liang Haiyuan was taken aback: "You mean... a long-term, slow rise?"
Su Hao didn't answer, but his intuition told him something was wrong.
"...Could it be!" Liang Haiyuan's pupils suddenly contracted, a crazy thought surging into his mind,
"You mean... the VIX index, in the short term... a sharp surge?!"
The moment the words left his mouth, Su Hao felt a cool, exhilarating sensation, as if every pore had been instantly activated!
That's it!
"Yes," he uttered a single word.
"But...but...if that's the case!" Liang Haiyuan exclaimed.
"The VIX has surged dramatically in a short period, which means a catastrophic event has occurred in the market! That...that's no less than a financial nuclear bomb exploding!"
He was right.
All the money, the world's money, was betting on "stability."
Everyone firmly believed that the US was impregnable, and the market was rock solid.
Precisely because of this, once that "nuclear bomb" detonated, the consequences would be devastating.
"Didn't you just say that too? All the money has flowed there." A cold smile curled at the corner of Su Hao's lips.
"Think about it from another perspective, isn't it a bit too crowded? If something happens, won't there be a panic sell-off?"
He paused, then asked, "How much cash can the company use right now?"
"About five billion. The rest is invested in various projects and can't be withdrawn in the short term."
Fifty billion...
Su Hao felt that this number couldn't satisfy his hungry "intuition."
It wanted more.
“What if we add more funds? We can transfer the group's reserve funds and all of this quarter's profits.
We can open a client account for the group headquarters through Fanghuan Investment, have them transfer the money in, and then authorize us to operate on their behalf.”
“Wait, wait a minute! Chairman Su!” Liang Haiyuan's face turned pale.
“That would mean our managed funds would exceed 50 billion!
If you predict a short-term surge in the VIX and we want to short the market…
No financial product can absorb 50 billion in opposing positions!”
Yes, that's a problem.
A single financial derivative simply doesn't have the pool size to hold such a terrifying amount of money.
But who says we have to invest in a single product?
"If the VIX surges in the short term, panic will spread like a plague, right?"
His gaze swept over each of his pale-faced subordinates present.
"Then, won't other stocks also be impacted, experiencing a short-term plunge?"
"Theoretically… yes, it will trigger a panic sell-off across the entire market in the short term."
"Short-term is enough." Su Hao's lips curled slightly, revealing a smile that sent chills down the spines of all his subordinates.
"Children make choices. We… want it all!"
"Put 50 billion into all VIX derivatives, and use the rest to short the US stock market!
Wherever there's panic, that's where we'll go!
The moment the VIX surges will be the start of our... hunt!"
"Chairman Su... what do you mean by that..."
Liang Haiyuan and all the employees present turned deathly pale, their lips trembling.
They finally understood what Su Hao was planning.
It was a plan they hadn't even dared to imagine, a plan so insane it was beyond comprehension.
"You...you plan to use this 50 billion... for ultra-short-term trading?!"
Su Hao smiled:
"Yes, we're launching an unprecedented blitzkrieg against the entire Wall Street!"