from late March 2013 to today 18 June, volatility has taken over Aussie Banks
From week ending 24 May to 18 June, WBC and CBA lost some 7% whilst NAB down 11%.
out of the three banks, which do you are most volatile in the last 4 weeks in terms of options trading.
CBA – put/call ratio moved from 1.7 when share price was diving to a a recovery of 0.63 (tipped towards calls) today
WBC – from 1.1 ratio to put to 0.62 today
CBA had been most volatile whilst WBC most stable of the three.
Trade what caught my attention today was a calendar spread on WBC and NAB.
short term upside capped whilst going long with a 3 month view.
selling Jun call at the money and buying sep at the money call.
This calendar spread expresses view short term weakness/medium term bullish view well.