Penalty Trade: Bought 15 DB shares at $12.35

Updated: 13 April, 2021 seen 34

On April 12, I bought 15 shares of Deutsche Bank (NYSE: DB) paying $12.35 per share. This trade comes as a "penalty trade" after I closed with a loss some bad performing options contract on RVP stock.

The idea for penalty trade is simple - always when closing some options contracts with a loss, I will double up and invest in quality stock. I must admit I have been overtrading lately and making mistakes in the stock market.

Anyhow, what do we know about NYSE:DB:

Deutsche Bank AG is a German multinational investment bank and financial services company headquartered in Frankfurt, Germany, and dual-listed on the Frankfurt Stock Exchange and the New York Stock Exchange. The bank's network spans 58 countries with a large presence in Europe, the Americas, and Asia.

The 20 analysts offering 12-month price forecasts for Deutsche Bank AG have a median target of 10.95, with a high estimate of 15.46 and a low estimate of 8.49. The median estimate represents a -11.66% decrease from the last price of 12.40.

Deutche bank stock forecast

Stock forecast according to CNN money

I must admit, the outlook for this stock doesn't look bright now, but as I have invested just in 15 shares I believe I will have a chance to invest at better prices and dollar cost average in the future.

Once 100 shares reached will start selling covered calls and try to recover something from the lost options trades.

DB options chain

DB options chain

I could sell May 14, 2021 expiry options (monthly options) with the strike price at $13, and get paid $0.36 per share. In case DB shares would get called away, my gain would be $101 in 30 days, about 8.17% yield.


Hi! My name is Reinis Fischer (38), a proud dad and devoted husband. CEO and Founder of Terramatris crypto hedge fund, drone enthusiast, world traveler, photographer, and passionate lover of Georgian cuisine (vegetarian).

An ex-pat living in Georgia since 2011, I trade stocks, take photographs, work out at the gym, and many more. Here I write about travel, finance, and other things that might interest me.