Credit Suisse and Deutsche Bank are on the verge of collapse.

A thread on the ongoing crisis at DB and CS as per my limited understanding. 🧵

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#deutsche #CreditSuisse

The combined asset base of the two banks is nearly $2 Trillion which is 3x the asset base of Lehman Brothers at the time of its collapse.

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#deutsche #CreditSuisse #LehmanBrothers

On 15 September 2008, Lehman Brothers, a bank considered 'too big to fail' filed for insolvency. It was the single largest bankruptcy filing in the history of the US.

At the time, the bank had $639 billion in assets and $619 billion in debt.

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Both Credit Suisse and Deutsche Bank are designated as systemically important financial institutions (SIFI): i.e. they are "too big to fail".

Remember the times when they labeled Lehman Brothers as "TBTF"?

Source - FSB

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The stocks of Deutsche and Credit Suisse have been slowly bleeding out since 2009 and both are down ~90% from 2009 high.

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#deutsche #CreditSuisse @in_tradingview

Option trading is tough but here’s what can make it easier for you

8 option strategies that you can use in any market (sold as a ₹ 50,000 course !)

1/ Bullish: Put Spread (Vertical Spread)

This means shorting a near OTM Put Options and buying far OTM Put Options to hedge.

Let's consider, I am bullish on Nifty (Spot: 17900).

So I will short 17800 PE and buy 17600 PE as hedge.

Payoff and other details is attached below.

2/ Bullish: Put Spread (Cross Calendar Spread)

It means shorting a near ATM put of current expiry and buying OTM put option of next expiry to reduce margin.

Let's consider, I am bullish on Nifty (Spot: 17900).

So I will short 17800 PE (22/09) and buy 17600 PE (29/09).

If you are unsure of the view then cross calendar spread can be used as profit is good in between the range.

Decay in the far OTM option for next expiry will be less than current expiry options so that will be again a benefit.

3/ Bearish: Call Spread (Vertical Spread)

This means shorting a near OTM Call Options and buying far OTM Call Options to hedge.

Let's consider, I am Bearish on Nifty (Spot: 17900).

So I will short 18000 CE and buy 18200 CE as hedge.

Payoff and other details is attached below.