AAL

Deutsche Bank Stock Lower After Police Raid

Police raided several Deutsche Bank offices

Managing Editor
Nov 29, 2018 at 10:21 AM
facebook X logo linkedin


The shares of Deutsche Bank AG (NYSE:DB) are down 3.3% to trade at $9.56 this morning after it was reported German authorities raided the company's offices early this morning, in connection to a money laundering investigation. Two staff members were allegedly setting up offshore firms as part of what's been dubbed the "Panama Papers."

On the charts, Deutsche Bank stock has endured a drubbing in 2018. DB has shed 48% overall this year, carving out a channel of lower lows since late July, culminating in a record low of $9.20 on Nov. 20. Since late September, the shares' 30-day moving average has kept a tight lid on any breakouts. 

Short sellers have been targeting the stock in the meantime. Short interest jumped 16.2% in the last two reporting periods, and now accounts for a healthy 4% of the float. Going by average daily volumes, it'd take these bears almost 14 sessions to cover.

In the options pits, puts have been in favor. DB's 10-day put/call volume ratio of 2.17 on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks 3 percentage points from an annual high, indicating that speculators have shown a much healthier-than-usual appetite for bearish bets during the past two weeks.

Echoing this, the equity's Schaeffer's put/call open interest ratio (SOIR) stands at 1.12, which arrives in the 87th percentile of its annual range. In other words, speculators are more put-skewed than normal among options set to expire within three months. 

 

Same-Day Trading Power: +227% YTD and Counting  — Get in for $10!

We're celebrating 44 years of helping traders win, and you can now tap into one of our most explosive services — Dynamite Day Trading Signals — for just $10.

This service was built for one thing: capturing intraday gains with precision. 

Access two highly-vetted options trades each week -  Complete with defined entries, exits, and a clear plan for same-day profits.

👉 Click Here to Learn More and Position Yourself to Take Action When the Next Alert Hits.