Deutsche Bank AG (DB) is a Frankfurt, Germany based investment bank and international financial services provider. At the time of this post, DB is currently trading at 28.24, down 1.67% on the day. The stock again printed new 52 week lows at 28.00 earlier in today’s session at as it continues to barrel lower, down about 46% on the year off the highs near 52.00 which printed around this time last year.
Earlier this morning, OptionHacker detected and flagged some unusually large bearish options activity in DB. At approximately 10:02AM CST, 1,755 of the DB Feb ’15 25.0 strike puts hit the tape in an opening transaction. The buyer of these long puts lifted the offer for 0.40 per contract, and bought this large block against an open interest of just 585. As of this post, over 2,700 of these contracts have now traded on the day, most of them at the ask. It would appear that this activity flagged by OptionHacker would indicate that a trader is positioning for further downside movement in DB heading into next month’s option expiration on Feb 20th.
Trade: I bought the DB Feb 25 Puts for $0.40
Risk: $40 per 1 lot
Breakeven: $24.60
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