McDonald's complex strategy revolves around trading short-term volatility index futures (UVXY) which are associated with Wall Street's so-called fear gauge, known as the VIX.

He believes the index been pushed artificially low by the Federal Reserve's pledge to do whatever it takes to combat the economic weakness caused by the COVID-19 pandemic.

Investors are mis-pricing risk and a likely possibility of a spike in volatility surrounding the U.S. elections in November, he told Reuters, and sees an opportunity to make a big payday by betting against that complacency.