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David Bartosiak's Deutsche Bank Trade

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Speaking on Bloomberg Markets, David Bartosiak of Zacks.com said that European banks are a bigger problem than they were a few weeks ago. He explained that rising yields for convertible bonds of European banks could be a problem.

Bartosiak suggested that traders should consider a bearish options strategy in Deutsche Bank AG (USA) (NYSE: DB) as a way to make a bearish bet on the European banks. He wants to sell the March 16 call for $1.95 and buy the March 18 call for $0.90.

The trade breaks even at $17.05 and if the stock trades below $16, he is going to make a profit of $1.05. Above $17.05, he starts to lose money and he can maximally lose $0.95.

 

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Posted-In: Bloomberg Markets David Bartosiak Zacks.comOptions Markets Media