It is possible the ECB meeting is starting a new leg down for European equities. We buy out the money put on the German DAX, for which implied volatilities have fallen too much. The chart on the DAX shows that we have reached a good level to short. Ultimate downside target is 11,322.

Buy December put strike 13000 for 10% of Notional. The chart below shows that implied volatility on the DAX out the money put has fallen from 28 to 25. Probably a bargain… for not very long