What’s happening with bank shares

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.


Is Telstra more volatile than the XJO Index?

In the last 10 trading session, Telstra TLS.ASX has fallen more than the S&P/ASX 200 XJO Index. 9% vs 6.5% respectively.

However, looking at the volatility though, the XJO historical volatility has climbed 25% versus TLS’s of 17%.

Also, TLS’s moving average of put/call ratio for the last 10 trading session has remained steady in the last 3 days.

It appears that despite falling in share price more than the Index (together with other defensive stocks in addition to issues with asbestos), its volatility has not climbed as much as that of the Index.

In spite of that, selling of calls had been active on TLS.