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Stock market fear just hit a record low (VIX)

The VIX, which is used to measure stock market fear, fell to an all-time intraday low on Wednesday.

Stock investors are looking as fearless as the girl in this famous statue.

The stock market looks downright fearless.

The CBOE Volatility Index — or VIX — dropped to 8.84 on Wednesday, its lowest intraday level in history. Used to gauge concern in the S&P 500, it's hovered near record lows for weeks now, even closing at a 24-year low last week.

Now it's official: by one measure at least, the market is as care-free as ever.

The VIX would eventually erase that intraday loss to finish the day up 1.8%, at 9.6.

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That the VIX hit its 24-year low on the same day when the S&P 500 closed at an all-time high isn't all that surprising, considering the two gauges trade inversely to each other roughly 80% of the time. What's interesting about it is the lack of worry.

But not everyone thinks volatility will remain locked in its lowest-ever regime.

Last Friday, a mystery trader made a massive bet that the VIX will surge. If successful, it would yield a $262 million payout, according to a person familiar with the trade. The investor implemented a bullish call spread strategy using hundreds of thousands of VIX options.

And then there's the recently-unmasked volatility vigilante, 50 Cent. He's been spending hundreds of millions of dollars to buy exposure on a VIX spike, but doing so in bite-sized pieces.

Whether these two gentlemen wind up having their day in the sun remains to be seen. In the meantime, those shorting volatility are popping champagne bottles.

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