- Deutsche Bank AG? (trading $19.37 with an IV30 of 34.90% and an HV10 of 28.25%) saw a large put time spread trade today. ?
- Customers sold the April 17 puts at $.40 and bought the May 17 put for$ .74 (10k times) and $.75 (20k times).? On the day the customer has bought the Apr-May 17 put spread for $.3467 30,000 times. ?
- Based on the open interest in DB this appears to be opening on both sides. It is certainly opening in May.
- This appears to be a customer that thinks there is a reasonable chance that DB is going to ease lower toward 17 over the next few months. They also believe that the current IV of around 35% is too low.? This customer wants DB to drop to 17 around the middle of April and also wants the IV to pop.? The timing of the trade puts it around French elections which could be interesting for the EU.
- This trade should be considered mildly bearish the underlying and bullish IV.