Near-term DB options have high premiums at the moment
Deutsche Bank AG (NYSE:DB) is up 2.4% this morning at $8.24, after the company's Chairman Paul Achleitner said its turnaround effort was working and it wouldn't need to rely on government intervention or a merger. Bloomberg reported earlier this month that the German government was working on a plan to merge Deutsche with Commerzbank AG.
Of course, none of this has enthused investors much, as DB shares have fallen from around $20 coming into 2018 to today's perch in single-digit territory. The stock hasn't traded above its 50-day moving average since September and touched an all-time low of $7.62 last Thursday.
This skepticism has played out in the options pits, too, where put buying has been extremely popular. Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows a 10-day put/call volume ratio of 3.58 for Deutsche Bank, a reading that ranks in the 100th annual percentile.
Options traders may want to think again when it comes to buying premium on DB at the moment, though. The security's 30-day at-the-money implied volatility comes in at 59.4%, which sits in the 100th annual percentile, meaning short-term options contracts are pricier than normal.