- 20 July 2021
yeah i'm a bit confused by what i'm seeing too. i was looking at some 1 month 25'ish delta puts across the big banks today in considering a possible trade along those lines, and strangely CBAs were sitting 2-3 vol higher than the other 3, they were around 23 whereas NAB/WBC were about 20 and ANZ about 21.
usually it's the other way round, CBA is traditionally the lowest beta of the big 4, in "normal" times CBA typically sits around 12-13 and the other 3 hover around 14-15. not sure what's going on. do they know something we don't, or is this just an excellent opportunity to rack up some good decay for relatively low risk?
well there should be a housing market stress coming ( too soon for some ) , given the history ( and size ) of CBA one would think the Federal Government is more liable to throw the life-line to CBA quickly ( the others MIGHT be let wiggle for a while )
there is also inflation building , i am guessing NORMALLY the analysts/fund managers would see the better growth potential of the 'lesser three ' but now they prefer the bulk and defensive traits of CBA