How Goldman Sachs made $200m profit in one day

115% rise in Vix index

Goldman Sachs is believed to have made $200m profit in one day after positioning to benefit from the sharp rise in volatility in February, according to reports.

According to CNBC, the firm had positioned itself to benefit if the CBOE Volatility index (Vix), which had been at unusually low levels during 2017, climbed higher. The Vix or 'Fear' index saw rapid movement on 5 February as it soared 115% to above 50, its highest level since August 2015, before falling back to around 30. This was a huge jump from 14 the previous week. This had been triggered by fears of rising inflation in the US and a policy error from the Federal Reserve.   Volatility returns: Fund managers reveal how they are playing turbulent markets A sharp rise in volatil...