3 Reasons To Be Cautious About Deutsche Bank
By Sammy Pollack:Shares of German bank Deutsche Bank (DB) are up nearly 14% so far in 2012. While DB has performed well, there are three reasons to be cautious about DB going forward.
Options Activity
Option Monster reported on the high level of bearish options activity recently; 3,250 May 45 puts were purchased, while an equal number of May 40 puts were sold. This trade is a put spread, where the trader will make a maximum profit if DB is below 40 at the time of May expiration. Volume was more than 4 times previous open interest at both strikes. Overall, put volume outnumbered call volume by 43-1. The large put spread likely represents institutional money. Institutional money is usually smarter, thus worth following. In summary, the recent options activity points to downside ahead for DB over the short term.
Spanish Bond Yields
Recently, Spanish Bond yields have risen above the keyComplete Story »
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