Options Trade of the Week
Deutsche Bank AG (USA) (NYSE:DB) Calls 
Monday, September 08, 2014

**OPTIONS TRADE OF THE WEEK: Buy the DB Jan 2015 35.000 call (DB150117C00035000) at or under $2.20, good for the day. Place a protective stop limit at $0.90 and a pre-determined sell at $4.00.


by Ian Harvey

September 08, 2014



Deutsche Bank AG (USA) (NYSE: DB), a global investment bank, has suffered shares down almost 30% this year, but despite the pressure of the litigation environment that it has found itself in recent times, some positive light seems to be apparent.

Technical Oulook

Deutsche Bank AG (USA) has shown signs of a bottom over the past month, and it looks poised to potentially claw back some of its losses. Last session trading was noticeable, Deutsche Bank stocks rose 0.83% with market capitalization of $48.97 billion, as outstanding shares was 1.38 million.


Smart Scan Analysis

Based on a pre-defined weighted trend formula for chart analysis, DB scored +70 on a scale from -100 (strong downtrend) to +100 (strong uptrend).

Beta Measure

Beta is the measure of an asset’s risk in relation to the market (for example, the S&P500) or to an alternative benchmark or factors. Roughly speaking, a security with a beta of 1.5, will have move, on average, 1.5 times the market return. [More precisely, that stock's excess return (over and above a short-term money market rate) is expected to move 1.5 times the market excess return).] According to asset pricing theory, beta represents the type of risk, systematic risk that cannot be diversified away.

Also, note that the beta is a measure of co-movement, not volatility. It is possible for a security to have a zero beta and higher volatility than the market.

Deutsche Bank AG (USA) has the market capitalization of $ 47.03B while 1.38B shares were outstanding. Beta factor, which measures the riskiness of the security, was recorded as 1.89.

Positive Moves

Deutsche Bank AG (USA) recently declared that it has win fund services mandate from TIAA-CREF. The firm was awarded a fund services mandate from TIAA-CREF. Deutsche Bank Alternative Fund Services was chosen to provide fund administration services for various TIAA-CREF Asset Management alternative investment products.

Investor Confidence

Earlier Friday last week, a trader bought 5,000 January 35 calls for $2.30 each. This comes to $1.15 million in option premium.

Analysts Opinions

Recently in a pool of analysts, 1 analyst rated Deutsche Bank stock at “underperform”, 1 at "Hold" and 2 with a "Strong Buy".


Although Deutsche Bank has been suffering for quite a while, it appears that several factors could be working in a positive way to help turn the stock price around for investors.

Therefore, based on the facts above the following options trade is recommended…..

**OPTIONS TRADE OF THE WEEK: Buy the DB Jan 2015 35.000 call (DB150117C00035000) at or under $2.20, good for the day. Place a protective stop limit at $0.90 and a pre-determined sell at $4.00.

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