This seems like a reasonable and insightful summation of the SVB situation:
https://jabberwocking.com/silicon-va...-thats-broken/
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This seems like a reasonable and insightful summation of the SVB situation:
https://jabberwocking.com/silicon-va...-thats-broken/
GDP of Switzerland is 800 billion. They spent 1/16th of their GDP on bailing out a shitty bank.
I don't think it can be assigned while halted. Eventually SIVB will trade even if it's for fractions of a penny. Enron traded for many years as a fractional penny stock. Someone owns the rights to that put.Quote:
Originally Posted by BobMc
/\This is wrong and of course Lee was right:
Yes, put writers who have open short positions have an obligation to buy the underlying at the strike price, regardless of whether the stock is trading. When a stock exchange halts trading in a stock, the options likewise won't trade. This lack of trading typically does not affect the ability of put or call holders to exercise (and a writer subsequently to be assigned) unless the put holder's firm imposes restrictions on those who do not have long stock. Although option writers still carry the obligations associated with their short position, option holders may have to enter explicit instructions with their firm to either exercise or not exercise any expiring option. Depending on when the trading halt occurred.
Heres the full memo search: OCC Infomemo #30049
The question I have on that memo is what would be the "declared price." It doesn't sound like there is a clear definition
I had a no penalty CD at 4% that I closed today.
I was initially going to put the proceeds directly into another no penalty CD at 4.75%, but instead decided to consolidate cash into VUSXX within my Vanguard brokerage.
I like the idea of having quicker access to the money directly in my brokerage account. If shit really falls apart and markets go lower, it'll be easier to start making moves into indexes instead of needing to wait a few days for money to clear out of the CD and into a brokerage.
Credit Suisse feels like it's been constantly failing my entire career.
I was short RSX calls and short puts when RSX was halted. It was a basket of Russian ADRs thats not traded for a year.Quote:
Originally Posted by 4matic
The calls assigned so I was short stock. The puts didn't assign even though they had been in the money at halt. Their owners quite logically didn't want to be long a halted stock.
IB ( my broker) wrote RSXs value down to $.89 from the $ 7 short proceeds (call + premium) so it's in accounting and tax limbo for now.
Declared price is indeed a strange beast
FRC- buy back in at 20 or avoid like the plague?
Generally when a stock halts so do the options. No one is going to make a mkt when they do t know where it’s trading. You can be assigned though the occ, as you stated.Quote:
Originally Posted by LeeLau
I did that in Pegasus gold and Enron when they never re opened.
I’ve lost zillions buying too soon. I’d need a 10-1 potential return.Quote:
Originally Posted by JimmyCarter
Correct but I was surprised and one leg of my hedge failed but to my profit!Quote:
Originally Posted by Cono Este
Jimmy. I'm still in my original FRC and WAL bag and holding. Added some this morning via FRX puts i wrote on that oh so sweet 750% IV (sarcasm)
If FRC sells all of substantially all its business it probably won't be good for equity though. Their wealth management division is superb but selling under pressure usually means deep discount. This popular delusion and madness of crowds is deeper than I anticipated
Faber says $25b “hole” in balance sheet, which isn’t great for a negotiating position I suppose. JPM would love that client base, but they seem to have a lot of balls in the air at the moment.Quote:
Originally Posted by LeeLau
I don’t have the attention span to build out an option play either, even though I think it’s grossly undervalued still.
Valuation in a panic environment is a crapshoot. My option play is hold token long. Sell puts on what I'd like to own at dumpster levels. Sell covered calls on underlying. Buy puts funded by the premium as some degree of protection. Basically long biased but with theta and vega on my side and hope the panic subsides in my 1 to 2 week timeframeQuote:
Originally Posted by JimmyCarter
As for why FRC and WAL are the weakest regionals these guys did the same screen I ( and many others) did. Screened for uninsured deposits and assets held to maturity
https://www.investors.com/etfs-and-f...ts/?src=A00220
JPM and MS in talks to bolster FRC, including capital raise
And talk that BTFP will kick in more to FRC. Low interest money printer go brrrrrQuote:
Originally Posted by JimmyCarter
Stock jumped 3 bucks on news, then dropped to a halt down
Sent from my iPad using TGR Forums
The swings on these boring af bank stocks is mind blowing. Fwiw option weekly chains created but not much interest in those yet.Quote:
Originally Posted by JimmyCarter
No WSB or thetagang significant mentions also. It'd be good to get the dumb money in on this for added whacked out pricing
WSB knows about it, but in their general “fuck the man” mentality they celebrate the downfall instead of buying up cheap.Quote:
Originally Posted by LeeLau
I've got an order to sell a put, but it's nowhere near the ask price. If it doesn't sell I'm going to sit on the sidelines and see what happens.
I’m tempted to sell a bunch of naked $5 or $10 3/17 puts but I just know that as soon as I do the bottom will fall outQuote:
Originally Posted by BobMc
Note: I’d love to buy at 5, but I feel like if it hits 5 it’s headed to 0
Absolutely it could tank more. Gotta ski but hot damn if this casino isn't entertainingQuote:
Originally Posted by JimmyCarter
In for a penny, in for a pound. Sold a Mar 31 $20 strike put for $6.00.
Sell a vertical in case it goes to 0. Leg into it if you can.
(No idea what it will do.)
Another name for QE??
Attachment 452081
Sold a Apr 6 $40 strike call for $5.00. Unless this shit goes tits up I should do pretty good.
Should be a good time to start a bank. Rake in a bunch of deposits, buy those treasuries with the high interest rates (or make/buy loans, etc). Pay high interest rates to get more deposits. Have a nice competitive advantage vs legacy banks for the next 5-10 years while they wait out their investments. The better earnings will also attract investors.Quote:
Originally Posted by MultiVerse
Any small banks positioned to aggressively grow?
Spider-Man meme. Before smartphones and twitter accelerated bank runs (SVB -$45 billion in a few days!) this is one of the ways things were quietly handled :
A group of financial institutions are in talks to deposit roughly $20 billion in First Republic, sources told CNBC's David Faber. The group includes Goldman Sachs, Morgan Stanley, JPMorgan Chase, Citigroup and others, the sources said.
The deal is not done yet, the sources said. The plan does not call for an of acquisition of First Republic. The sources noted the amount was a moving target. Other reports said the deposit boost could be as much as $30 billion.
https://www.cnbc.com/2023/03/16/grou...urces-say.html
Also, needing a $30 billion infusion more or less sinks Barnett Frank's "all is well" argument.
Maybe. It’s more of a one year fully collateralized loan. I don’t think you’ll see a lot of banks using that source of collateral to fund lending activity, but I’m probably wrong there.Quote:
Originally Posted by Kevo
How much do you suppose you’ll have to pay for those deposits? Nobody’s raking in deposits right now except the really big players. You’ll still be underwater, just a little less underwater than the other guys, and you won’t have any non-interest income flowing through to offset it and no lending or risk management capacity to chase higher yield.Quote:
Originally Posted by LongShortLong
But you should try it.
Ignoring the fact that it is nearly impossible to charter a new bank after Dodd Frank:Quote:
Originally Posted by LongShortLong
So you're gonna go buy treasuries at... what, 3-4%? Plenty of existing commercial banks out there paying that amount or more for deposits so you'll have to do a lot better than that to steal their customers, leading to a net interest margin that will be underwater or close to it. Great business plan you've got there.
jUsT InVeSt tHoSe dEpOsItS In bItCoIn!!Quote:
Originally Posted by JaytaeMoney
Whew, that was fun...
Started the day uneasy, watched FRC tumble down to the low 20's. When it started moving upwards a bit I sold a Mar 31 put with a strike of $20 for $6.00. Soon after I sold an April 6 call with a strike of $40 for $5.00. After the news of added liquidity for FRC it jumped back up into the mid 30's. When that happened I bought back my Mar 17 strike $35 put for $3.90, I'd sold it for $4.40 yesterday. It went back to low 30's and I sold a Mar 31 put with a strike of $34.50 for $10.20.
As it sits right now I own:
100 shares at a price of $38.24
An Apr 6 call with a strike of $40 (sold for $5.00)
A Mar 31 put with a strike of $20 (sold for $6.00)
A Mar 31 put with a strike of $34.50 (sold for $10.20)
I'm up $200 on puts I've sold and bought back so far. Ideally this thing gets north of $40 by the end of the month and I keep all of the premiums. If it does this again tomorrow I'll be off to the races again...
Nice work so far Bob!Quote:
Originally Posted by BobMc
Thought the drama was over but now it’s down 20% AH?? On no news?
I don’t think I’m going out on a limb here by saying that FRC vol is too cheap?
What a day.
BHRB soon to be on the Nasdaq, maybe. It’s the bank I mentionedQuote:
Originally Posted by LongShortLong
Div cut. Sold 2 rounds of puts today and bought them back. Hoping the shenanigans continue tomorrow.Quote:
Originally Posted by JimmyCarter
WAL is boring compared to FRC. Quite the roller coaster
How the hell does a dividend cut even register after an 80% share drop, let alone for that much value?Quote:
Originally Posted by LeeLau
$148 billion more than usual through the discount window this week.
Fed balance sheet up by $300 billion, wiping out 4 months of QT in a single week.
Let the hyperinflation games begin.
The option expiration for signature has been extended. No one is sure what price to assign as it may trade again.
You think 300B through the discount window is leading to hyperinflation? 300B doesn’t even register.Quote:
Originally Posted by MCS5280
Remember when banks had free money for over a decade and it led to ~1.5% inflation over that time? Need a mechanism for the deposits to work through the economy.
I know right.? Hate afterhours trading but couldn't resist and bought some FRCQuote:
Originally Posted by JimmyCarter
LOLQuote:
Originally Posted by LeeLau