Time to Play a Beaten Up Brand Name in the Financials
The volatility being priced into these options isn't too bad, considering the nearly 50% cratering the stock has endured since January. And the 30 million shares traded back on May 31 where the stock made new 52-week lows then finished near the high of the day sure has all the hallmarks of a capitulation day.
As such, with the stock pulling back to around $11, I'm wading in here, buying August expiration 12-strike calls at 35 cents.
This trade is either a zero, or a hero. There is no in-between. If the bottom is indeed in, I'll probably look to take at least partial profits if $DB makes it back up to the $14-15 before August expiration.
Godspeed.
~ @chicagosean
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