Reddit Posts
WhiteHorse Finance says some portfolio companies have exposure to SVB, SBNY (NASDAQ:WHF)
Why didn't anyone on Wall Street predict this banking crisis?
Tiny First Republic Bank, Uncle Yellen Got Your Backstop
New York Community Bancorp pursuing acquisition of Signature Bank - report (NASDAQ:SBNY)
MEGATHREAD: CS, SBNY, SVB, SI and other bank failure option discussions
Banks At Risk Of Failure Due To HTM Losses & High Amount Of Uninsured Deposits (Similar To SVB/SBNY)
Banks At Risk Of Failure Due To HTM Losses & High Amount Of Uninsured Deposits (Similar To SVB/SBNY)
FDIC willing to talk loss-sharing to smooth sale of SVB, Signature Bank (NASDAQ:SBNY)
Full List Of Banks At Risk Of Failure Based On Deposit Base And HTM Losses (Which Killed SVB & SBNY)
Full List Of Banks At Risk Of Failure Based On Deposit Base And HTM Losses (Which Killed SVB & SBNY)
DO NOT hold near-expiry Puts on any stock that might collapse. Brokers are refusing to honor Puts on halted bank stocks…YOU WILL LOSE 100%
Charles Schwab calls itself a ‘safe port in a storm’ as it took in billions in new assets the past week
PSA.... If SBNY and SIVB remain halted, those options are not subject to automatic exercise
US CFTC to give pass over certain swap reporting failures tied to SVB, Signature Bank contracts
Investor Activism Works | $SVB & $SBNY Put Options Case💵
11thestate.com | Regulators asked banks interested in acquiring $SVB and $SBNY to submit bids by March 17. Any buyer of SBNY must agree to give up all the crypto budiness at the bank.
FRC, WAL, KEY rebound; BG higher on replacing SBNY in S&P 500; NTCO, GTLB, BZFD slide
Where is a good place I can consult a licensed stock broker about options questions?
FEDs are not bailing out banks, they are bailing out the bond market.
Hard Hit By Bank Crisis, These Fintech Stocks Try To Claw Back
$HOOD Users & Investors are Uniting to Fight Losses🥊🥊🥊
NEWS: 3iQ Announces Firm Has No Exposure to Closed US Banks
MicroStrategy and Marathon Digital Lead Bounce for Crypto-Related Stocks
Signature Bank taken over by New York Department of Financial Services (NASDAQ:SBNY)
While SBNY and SIVB put options are halted, you can still exercise them
While SBNY and SIVB put options are halted, you can still exercise them
What happens to $SIVB and $SBNY puts if trading remains halted until Friday?
It’s not a Bailout you apes
Regulators seize Signature Bank in third-largest US Bank faulure
Signature Bank becomes the second regional bank to failure in two days as regulators seek to restore calm to the banking world before markets open.
Signature Bank New York Fails ($110bn) - Fed will cover all uninsured deposits
Regulators seized New York regional bank Signature Bank (SBNY) before markets open Monday.
[Signature Bank] Cramer blessing SBNY in April 2022, saying SBNY is a buy
Regulators close New York’s Signature Bank (SBNY), citing systemic risk
Sam Bankman-Fried pictured with two Senior VPs of $SBNY.
Signature Bank (SBNY) First Republic Bank (FRC) Western Alliance Bancorp (WAL) PacWest Bancorp (PACW) Plunge Amid Wider Bank-Stock Selloff
What bank is next, $SBNY, $FRC, $ZION or $TFC?
Signature Bank (SBNY), Silvergate (SI), FTX, and TrueUSD: A Tale of Questionable Judgement
Signature Bank, FTX, and TrueUSD: A Tale of Questionable Judgement (SBNY, Silvergate, Binance, and a trillion dollars in murky transfers)
Mentions
Total failed assets of SVG & SBNY
Ticker SBNY. Sold put option. 3/17 expiration Strike $60 Premium $4 Closed $70 on expiration I now have a 100 shares at $56/share
SBNY 9 cash secure puts at a $60 strike price expiring Mar 17.
You are next level regarded my friend. Margins on SBNY? Then you doubled down? You are a very special kind of degenerate indeed good sir (or ma’am?) and yes, absolutely, sueing Fidelity is your only logical next step to achieve full, 100%, unabashed regardation.
No, the overwhelming majority of banks are incredibly safe. The sector as a whole has pristine asset quality and much more capital than prior to the "Great Financial Crisis". SIVB an SBNY were extreme outliers.
Total loss from their investments in FRC, SVIB, and SBNY is around $2 billion.
Total loss from their investments in FRC, SVIB, and SBNY is around $2 billion.
They dumped FRC on the 15th per the article...but why the fuck were they specifically only invested in FRC, SIVB, and SBNY?...how do you even pick a fucked up trifecta like that?...
And a friendly reminder that FRC is 8th on the list of banks with highest uninsured deposits in US: 1. BNY Mellon, [$BK](https://twitter.com/search?q=%24BK&src=cashtag_click): 97% 2. SVB, [$SIVB](https://twitter.com/search?q=%24SIVB&src=cashtag_click): 94% 3. State Street, [$STT](https://twitter.com/search?q=%24STT&src=cashtag_click): 91% 4. Signature, [$SBNY](https://twitter.com/search?q=%24SBNY&src=cashtag_click): 90% 5. Northern Trust, [$NTRS](https://twitter.com/search?q=%24NTRS&src=cashtag_click): 83% 6. Citigroup, [$C](https://twitter.com/search?q=%24C&src=cashtag_click): 77% 7. HSBC Holdings, [$HSBA](https://twitter.com/search?q=%24HSBA&src=cashtag_click): 73% 8. **First Republic** Bank, [$FRC](https://twitter.com/search?q=%24FRC&src=cashtag_click): 68%
Financial markets always are full of surprises. No didn't miss it, I've been following this super closely on Reddit/Twitter. The point isn't that more than a few people were assigned, it's that some people were NOT assigned. Normally every ITM option is exercised. That wasn't the case with $SBNY and $SIBV 3 days ago. In the instance the $FRC is seized and the stock is halted, there's >0% chance that >0 writers of ITM puts will not be assigned.
**Uninsured Deposits by Bank:** 1. BNY Mellon, $BK: 97% 2. SVB, $SIVB: 94% 3. State Street, $STT: 91% 4. Signature, $SBNY: 90% 5. Northern Trust, $NTRS: 83% 6. Citigroup, $C: 77% 7. HSBC Holdings, $HSBA: 73% 8. First Republic Bank, $FRC: 68% 9. East West Bancorp, $EWBC: 66% 10. Comerica, $CMA: 63% **There are now a total of $8 trillion in uninsured deposits in the U.S.**
No. My puts expire in December so I’m just waiting to see what happens. RH still has $SBNY at $70.
Did you exercise? Looks like SBNY share holders are set to get nothing. NYCB has bought $12.9B worth of its loan asset for a discount price of $2.7B. That's probably how those assets will be sold over the next few weeks.
Of course, but I guess you missed the $SBNY and $SIVB fiasco. Majority of brokerages did not allow put holders to exercise 3/17 expiry options, and people who thought they made 1,000%+ ended up -100%. In that light, there is quite obviously a >0% chance the same situation would occur w/ $FRC, IF an FDIC seizure were to occur.
Got a 4/21 SBNY put that I'm hoping I cash in on... Eventually.
Much better to sell puts. If the stock goes up, you keep the premium. If the FDIC seizes it and freezes the stock, and the brokerages behave the same way they did with $SBNY and $SIVB, then you keep the premium as well.
FRC was right up there with SBNY and SIVB on Burry's bank chart
Hey SBNY holders, did you get anything for your shares? Asking for a FRCiend
Whether or not a stock is halted has no bearing on your ability to exercise a put, period. The only thing that changed this time is that Robinhood caved on their short ban. All other brokers allow exercising a put into a short position anyway. They are free to set their own margin requirements for this as they see fit. OCC specifically allowed delayed settlement for SIVB/SBNY and that is not unusual procedure for a halt either. But SBNY isn't even hard to borrow and there are plenty of shares still available as per iborrowdesk.
Why are you scapegoats here. You sold a contract agreeing to buy SBNY at a certain price and now you had to. It's like insurance, you agreed to ensure a house close to wild fires for a larger than usual premium, now don't act surprised when you have to pay out that claim.
Si, SIVB, SBNY... In a month dude.
These ratings are a joke. Sure kick the bank while it’s down. Where were these ratings on SBNY and SIVB before they went from 100-0? As an investor, these ratings hold no weight in my book. By all accounts, FRC is a fantastic bank that’s committed to the customer. I watched a video from the CEO from last year, I feel good in my conviction of the bank and holding the stock even though I’m down. It’s founder led and built on great fundamentals.
People still don’t get it… the Fed wasn’t the one pumping the market in 2021. They were just tossing breadcrumbs to keep the banks fed. All that free money came from banks dishing out no questions asked credit to every piece of shit VC sweetheart that mentioned blockchain…or the flood of suburbia goombas building their home flipping empire. That free money era died with SVB, SBNY, SI, FRC The Fed could cut rates to 0 tomorrow.…after what just happened your dumpster fire negative cash flow tech startup moonshot is not gonna get new financing. Compliance officers have every loan officer and mortgage broker in a barbed wire testicle vice right now. The Nasdaq tech bubble hasn’t even begun the pop that’s about to happen once the cash runways dry up in a few months.
Hilarious how the Nasdaq still pumps 2x from you idiots throwing cash at pos tech stocks every time Powell farts a dollar. Those same tech stocks are the ones who just bled SVB, SBNY and SI dry over the course of a year to the point of collapse… and their prospects of future credit liquidity just dried up faster than that chick you took home from the bar after you showed her your micropenis
wonder what this does to the underlying $SBNY......?
Ask SVB and SBNY put holders lol
Shareholders in SBNY are getting wiped out. Trading is currently halted and the executive management has been forcibly removed. I doubt there will be anything left for unsecured creditors or shareholders.
It’s not. Everyone with SVB OR SBNY puts were able to exercise on most brokers. They had to open short positions to do it, and everyone was confused for a while, but it was done. Source: I did it. Second source: That dude that sold naked puts and is now RIP.
Sounds like FRC and WAL deposits are secure. We don't know the outflows but they may survive intact given how much support they have and reported balances. NYBC reportedly looking at taking over SBNY. All but absolute dogs hit may survive
That is what people said about CS just a week ago when SIVB and SBNY failed. Another regional bank could fail next week for all we know.
And where is a broker supposed to obtain SBNY or SIVB shares? They are non-existent. I feel for people but I don't understand how people think this is the broker's fault. They can't just locate shares that do not exist.
First, sorry for the bad trade. Unfortunately, the regulators really screwed everyone by not resuming trading in SIVB and SBNY (i.e., people might have been able to get out of losing trades at better prices, sell marginable securities at better prices, etc.). If you get the chance, try and get the terms and conditions when you opened the account with TD (and any subsequent changes to the terms and conditions). This is what you agreed to and this is what TD is probably going to work with when they go after you for full repayment. If you have a lawyer (or a friend who is a lawyer), let them see the terms and conditions, explain the situation, and then get their input on what they suggest you should do. You may also look out for any class action lawyers who are suing SIVB. You could be a lead plaintiff in any case since you were wiped out. Obviously keep an email trail of everything. If possible have a lawyer (or lawyer friend) negotiate on your behalf. Sorry once again for your bad experience. I hope you are able to find a reasonable resolution to your problem. In addition, maybe you can get some restitution from a class action lawsuit.
I'm one of the people who was holding SBNY puts. The people who organized on Twitter were certainly not "big guys," I think the absolute biggest position I've seen is something like 15 contracts, which someone could have entered for < $500 when they were trading like pennies. I'm a laid off programmer and the money will help buy me some more months of runway for what's been a difficult job search. When we tried to exercise this week to collect money we were owed on our successful bets that SBNY would go to zero, the brokers started trying to pull every trick in the book to prevent us from exercising, probably because it would have exposed them to losses on their retail accounts which were short puts. Buying options is a long, hard game and it doesn't work at all unless you actually get paid when the 50th low-probability-but-positive-EV bet finally pays off. The brokers make money off of trading activity, and so over the very long run it's probably better for their bottom line if people like you are selling options to people like me, even if it sticks them with losses every now and then. I wouldn't even be surprised to hear that some of them have a model for that somewhere. I'm no fan of telling grown adults what they can and can't do with their money, but retail investors who want to naked short options should be forced to watch a 20 minute educational video with stories of people who've lost everything doing it. That Nikkei options broker I mentioned elsewhere in these comments lost a personal fortune of $6 million. Speaking more broadly I also think it sucks that our prevailing economic arrangements thrust us into this zero sum war of all-against-all just to survive financially, and I'm really sorry about your loss.
The government and even Joe Biden in their statements have hinted at a strong desire to see the equity go out at zero. SBNY suffered a legit bank run before it was seized. On Friday the SEC commissioner suggested that brokers and clearing agencies explore cash settlement of the ITM options, and I'm not sure what price she would have had in mind other than $0.
>SBNY Puts: Currently some brokers are still mis-marking SBNY and/or refusing to honor the options holder's right to exercise. >https://www.sbnyputs.com What more evidence do you need to know that most brokers are just bookies and that there's probably nobody on the other side of the trade.
SBNY Puts https://www.sbnyputs.com
Right thing to do would be raise 50, but theyll only raise 25. And SBNY failed because it started messing with crypto tulips, so if the fed was serious about financial stability they would pop the tulip bubble with regulation and discuss that with the public on wednesday. Bulls were too coked up last Thursday and Friday, the market should have played dead if they wanted a rate pause.
I know. Just trying to point out some basic flaws. My self? I fucked up hard on SBNY. Sold some calls Friday a few weeks ago when it was down 20%. Crazy busy that day and couldn’t follow the market expect a few quick checks. Closed for a small loss. Then again, it wasn’t 22 contracts 😂
Yes, I got delivered shares. Fidelity is one of the biggest investors in SBNY. I wouldn't be surprised if it's them using this opportunity to offload some stock to retail! Fraud happens at all levels.
The assets have been removed from the holding companies. SIVB and SBNY no longer hold these assets/liabilities, which essentially makes them worthless. The asset will be sold (most likely at discount values) to pay depositors. People keep saying book value is high, but I wouldn't trust that book value today. Regulators aren't in the business to sell assets at profit. They just want to unload the asset and pay the depositors. Any assets left over will then go to bond holders and preferred stock holders, and we know these folks never get paid par value. So, common shareholders are going to get nothing. That means, SIVB and SBNY will probably move to OTC and trade for pennies.
Yep, it is 100% margin. They sent me an email the minute I went long on SBNY puts.
> "You’re probably wondering why there would be such high margin requirements to open a short position at a high price on a going bankrupt company and it’s because there’s a non-zero chance the underlying doesn’t go to zero when trading resumes, for whatever reasons including announced mergers or sales." lol no, it's because they knew that every contract that got exercised put them at greater risk of having someone like the OP stick them with a big loss. I exercised several SBNY contracts at E*Trade this week and they tried every deceptive tactic and dirty trick in the book to get me not to do it.
Honestly, thanks for sharing this. I feel for you. In a similar position with SBNY. Not been exercised yet
If you deposited more than 250K without insurance then yes, you should lose it. It's not like FDIC is some hidden program that only a select few know about. I would (hope) that the bankers would be telling people depositing money this information. In the case of SVB and SBNY (and now FRC), we are bailing out millionaires and possibly billionaires. How is that fair to the average person who now pays in the form of inflation, higher bank fees, or higher taxes.
This! I have seen a lot of rookies making assumption. SBNY as it was last Friday is gone. There's no real value left as the FDIC has moved everything out. Now, it can reopen in OTC and trade at pennies to allow everyone else to get out, but that's it. There's no value left in the holding company.
Just curious. What did they value SBNY at? What was the strike of the put that you sold?
I got exercised too on $SBNY. You’re not alone brother. This was 99% of my account
Damn man. I'm sorry to hear that. The halting of this stock and SBNY put a lot of people in a serious bind. You might need to look into bankruptcy or something.
Damn man. I'm sorry to hear that. The halting of this stock and SBNY put a lot of people in a serious bind. You might need to look into bankruptcy or something.
Damn man. I'm sorry to hear that. The halting of this stock and SBNY put a lot of people in a serious bind. You might need to look into bankruptcy or something.
Damn man. I'm sorry to hear that. The halting of this stock and SBNY put a lot of people in a serious bind. You might need to look into bankruptcy or something.
>How was their HTM holding up? >that's in the burry tweet. My apologies, I rushed a response on mobile for that one. I scrolled past that chart last night and didn’t look at it as closely when you just sent it. Idk what CET1 Capital is but they’re barely above the median amount of losses. > I'm guessing you're in the 'SBNY closure was a Fed hit against Bitcoin' camp? Lol no, not really although it does make me wonder. But I have no interest in BTC’s success. I’m the opposite of a bitcoin maximalist. I think it’s a Ponzi scheme that should go to zero one day
Where’s the poll on if $SBNY opens for trading on Tues and at what price?
> how much was withdrawn leading up to their failure? i don't think any1 knows that one.. > How was their HTM holding up? that's in the burry tweet. ---- I'm guessing you're in the SBNY closure was a hit against Bitcoin camp?
Sure, but I’ve seen one chart from Michael Burry saying they’re number of accounts are somewhere around 94% insured similar to SVB. But I know $41B were pulled out of SVB in like 48 hrs leading to its fall. I also know they sold $21B worth of bonds at a 10% loss and were going to continue to do so because they had no interest swaps, duration hedge. Their average HTM was yielding 1.96% aka picking pennies up in front of a steamroller while their VC clients were having liquidity dry up faster than anytime in American history. I haven’t heard any of those numbers or story for SBNY 🤷♀️
Sorry if this has been discussed ad nauseam , but I haven’t been on WSB all week. From everything I’ve read in the last week, I’m not understanding by SBNY was shut down. Only thing I can find is “due to systemic risk”. I haven’t found a single number or statistic the way they’re spitting it out for SVB. Seems like they jumped the gun on that one and fucked investors and the crypto space. Plus they closed it on a Sunday. What’s that about? Did they see something behind the scenes and never got around to say exactly what it was, unlike SVB which was happening in real time , plus SVB was being overly communicative. Arguably to their demise
Not really, why SIVB is out there on its own, look at SBNY and FRC, they have plenty of neighbors.
Plotting unrealized % losses of CET1 capital on the x axis against % of depositors with deposits in excess of the FDIC 250k limit. Basically, you can see that SBNY and SIVB were both outliers on the whole. FRC is also up there but not nearly as high as the other two. The purple banks are the “too big to fail banks” My takeaway is that SIVB was going to fail due to the massive losses whereas SBNY failed not as a result of losses but more of a result that they held concentrated risk in that most of their depositors held in excess of 250k. Once SIVB was taken over by the Gov and before the depositor bailout was announced, people in SBNY began pulling money out and that caused the bank to fail as well. Now with the government essentially saying “don’t worry fam we got you covered” with respect to deposits it doesn’t make sense why certain institutions like FRC would collapse because they’re losses are not nearly as severe as SIVB and the government/banks have come together to say “we good”. My takeaway is that burry is saying that the fear is overblown and the panic is unjustified but I’m just a simple ape trying to understand these arcane arts
FYI Fidelity was exercising these contracts with a $0 margin requirement yesterday. Your broker has absolutely failed in their duty to you and you should pursue legal action. DM "SBNY puts" to @AlderLaneEggs on Twitter. https://twitter.com/EricFurletti/status/1636820823700029440
The idea that anyone outright long an option contract for more than the amount of underlying they hold can be categorized as a "pure speculator" (by which I assume you mean purely speculating on downside, since even a covered call or put position is by definition speculative) is false. For example, one trading thesis with $SBNY might have been "it is probably fine and oversold, but there some small risk of a sudden forced BK." To express this thesis, one might have purchased SBNY stock, paired with a large number of very far OTM puts for *more* than the number of shares in the long holding.
On Thursday morning I exercised $SBNY puts at E*Trade with a 100% margin on a $64.60 valuation. If they quoted you any worse terms you should take notes, save any receipts, and get in touch with service@nortonlaw.com
Is this saying SBNY will get a bailo... er... a backstop?
Wow. To point out the obvious, he's showing that most banks have a ton of deposits over $250k -- meaning they're at greater risk of a bank run. At the same time he's showing that most banks have at least 30% of their CET1 (Capital required to absorb losses) in unrealized losses - meaning it's doesn't take much to eat away their CET1 considering all the other losses the financial sector is and will be experiencing. Some of you all need to stop generalizing with this chart just because SIVB and SBNY are skewed extremes. It just means it's obvious they would fail first
No cap on losses? You do know SBNY doesn't exist anymore, right? The only issue here could be the opportunity cost as OP would have funds tied up to this halted and unsettled short position while also paying the cost to borrow, but OP is set to receive the entire sale of the short position from his strike, so the opportunity cost would have to be very high. It seems everyone believes that SBNY and SVB's assets will be purchased at par value, and that never happens. It will be bought at market value, or in this case bankruptcy/regulator take over values, which is much lower than market value. Depositors get paid first, then if any value is left over, that'll go to bondholders and there's no way bonds are getting par value back, so shareholders are usually left with OTC trading where the stock is pennies.
Do I read this as SBNY has a high percentage of accounts that are above insured limits and there assets are crap cause their market value is less than their face value? So if there is an issue account holders lose and the bank assets are not at valuable as one might think.
I notice that SVB is still at $106 and SBNY is still at $70. At what point would it show zero for your funds in your brokerage account, and what point would you get any potential margin calls for not having the funds? I dont own either, but am curious.
I notice that SVB is still at $106 and SBNY is still at $70. At what point would it show zero for your funds in your brokerage account, and what point would you get any potential margin calls for not having the funds? I dont own either, but am curious.
Yeah except BAC has wayy More money than SIVB or SBNY. So really Y axis should be the $ amount of uninsured deposits on a log scale
The chart shows that the median bank has about 60% of its CET1 capital in unrealized losses. The top performers are SIVB, SBNY, and EWBC with less than 80% of their CET1 capital in unrealized losses.
was it Craig? Chaz? Roger? haha I called the their derivatives twice a day like a mad lad asking for plain english interpretations of these occ info memos, only to let them talk me into waiting! all the same, i hope ackman's tweet rings true and BAC buys SBNY. Hopefully, the ticker is assigned a favorable value for final disposition.
The trading was halted, and without bankruptcy filings then the price remains the same as it was when it closed when it was halted...if SBNY or SIVB manage to make it out of FDIC Bridge bank control and go back into business, then they would likely do so through Chapter 11 bankruptcy and starting fresh with a new ticker, which would then make the prior one officially $0...they were both removed from the S&P 500 because when the FDIC takes receivership it disqualifies them from eligibility for being on the S&P 500, not because their share price is theoretically $0...it will only be $0 when the bridge bank terms are finalized and it's officially bankrupt, or if they file Chapter 11 restructuring bankruptcy, until those happen the reality is the shares are technically also worth their previous close price...
Everything is so unpredictable. I thought FRC was in good shape earlier in the week and even yesterday, but things kept going down - options are pointing in the wrong direction, and I figure I'm not smarter than the pros. When I bought it I was hoping that they needed maybe 15-20bn from the discount window. TBTF fund. Then I read they had borrowed 100bn at the discount window - plus the 30bn from the big 5 and regionals? Seems like 70% or more of their deposits might have evaporated. How's a bank going to make money when it has no customers. Once that money is moved, it's almost certainly not coming back. With all the signals heading into the weekend I closed my CCs for a $200 profit and then dumped the stock for about a 1200 loss. Maybe I'm spooked but I saw what happened with SVB and SBNY last weekend. I wouldn't be at all surprised to see them taken over this weekend or sold at fire sale prices. A shame, too. I was rooting for them. We need regional and community banks. I'm not a fan of having banking centralized in 5 banks. So much for making sure we don't have 'TBTF banks'.
I used https://finance.yahoo.com/quote/SBNY/options?p=SBNY and just added all put OI together today when it still showed the March expiry. Unfortunatly the website only shows the April chain now. But I still have the calculation: 384+336+512+181+369+384+823+681+584+975+490+418+1213 = 7350 Multiply by 100 and then its in the ball park of 735000 shares. 62.93M shares outstanding, so its slightly above 1%. Assuming that yahoo was reporting accurate numbers.
If SBNY was at 95%, FRC Is ~80% with a slightly higher percentage of unrealized losses. FRC did just receive a $30bn injection from other banks though
SBNY definitely did not have negative book value but I found the answer somewhere else. It had to do with SBNY providing inaccurate numbers according to bloomberg
Both SBNY and SIVB were constituents of SPY and are being replaced with something else. Passive money has to sell, at any price. Some other funds will probably dump them first chance they get too. There's also considerable selling pressure ince it reopens.
I went short on SBNY exercising a 3/17 60P with clicking a few buttons through Robinhood. Does this make people think more of that platform now? I am personally thankful. I’ll wait until it’s all said and done to finally reach a verdict.
Because the problem really isn't SVB-centric (or SBNY centric). It's pretty much the entire US regional bank system. If the Fed were to keep hiking "and" continue QT, it's quite possible that there wouldn't be a regional banking system at the end of it, and yes, this is a significant enough issue for them to pay attention to. They want to slow the economy down; they don't want to blow up the banking system, so QT for all intents and purposes is over. It won't be official for a while, but I'll be shocked if the QT program isn't sunsetted by the end of the summer. (Now Canadian banks, yes, it's a headscratcher on why they're getting roped in as well)
Do you think Chairman Powell is still going to increase rates? The Fed just did some Q.E. action for SVB and SBNY in the U.S., but I suppose nothing is shocking these days
Do you think Chairman Powell is still going to increase rates? The Fed just did some Q.E. action for SVB and SBNY in the U.S., but I suppose nothing is shocking these days
Clearly CS, SI, FRC, and SBNY also have female risk officers.
Hertz only went to $0 because they restructured under bankruptcy and came back as a new publicly traded company. That's not what's happening with the banks. If SBNY and SIVB go live, they will NOT be at $0, the put contracts will cash out and the price will skyrocket from selling the shares at the option price. Their prices are halted at their previous trading price, not at $0. In theory they're only at $0 right now, pending whatever happens with the banks and whether they begin trading again.
Many brokers have not been allowing opening of short positions on it, nor new margin positions. Robinhood for example from the articles has a policy of not allowing any short positions…after persistent public presssure they made a 1 off exception on SBNY, allowing shorts with a 2x last trade price margin requirement.
I'm hoping they open up $SBNY so I can sell my April puts. RH was allowing me to exercise but I didn't because of the unknowns regarding when the stock trades again and whether it gets bought out. Trade safe...
I was looking into whats going on with SBNY & SVB and although some people have been able to exercise...it seems like a headache. Some already held the shares, so that's easy. But going short gets ugly because you might be getting charged God knows what HTB interest on crap that's unavailable to buy back. Some have been able to go short, but with way higher margin requirements. The general consensus seems to be buy long dated options, wait for it to move OTC, buy the shares for whatever market is at that point, then exercise. Or could sell calls since this mess isn't getting sorted anytime soon, but run the risk of really getting smacked if it is. I think I'll sit this one out. I already made out pretty well From $50 to $20 when I cashed out my $70P for like $45.
Are you up on the SVB news and the bank failures in general? There's been pretty detailed coverage of the day by day, if not hour by hour progress on SVB. A stock exchange will halt trading on a stock when further trading can either harm the future of the company, like make the difference between it surviving or going bankrupt, or when trading can disrupt the market to such an extent that a crash that hits all stocks in a sector, or the entire market, might occur. A halt can also happen when there is uncertainty about whether the stock will continue to meet necessary requirements to stay listed on the exchange. All of those reasons are in play with the SVB and SBNY bank failures.
*BANK OF AMERICA $BAC NOT INTERESTED IN BUYING SIGNATURE BANK $SBNY - REUTERS …. But Ackman said 🤡🤣😂
OP is not wrong. By letting your options expire, puts or calls, you effectively give up the right to exercise and lose the entire investment. Per IRS, you can claim 100% of this loss in 2023 against ordinary income, separate from the $3k ordinary loss limit and carry over rule. If you're a put holder and want the money, you must call your broker and request to exercise, but are now subject to your broker's interpretation of OCC guidance, plus their own risk management guidelines. By exercising, you effectively open a short position, cashing out based on the strike price of your contract OR last trade price. You also now have a margin maintanence requirement plus daily hard to borrow fee. Knowing that the underlying ticker is not tradeable, you will incur the HTB fee, margin interest, and your cash out is "locked" via margin maintenance requirement until the OCC issues settlement guidance for the underlying. Had I exercised my puts this past Tuesday, my $70 strike puts would have cashed out at $70, the price as of the last trade halt, with 0 HTB fees because there were plenty of shares available. Today, I exercised my $70 strikes puts at 64.60 because that's their new guidance as of Wednesday night. Because I waited, others beat me to the punch, and now the shares are HTB. As of Wednesday, the HTB fee was .75%, now it's 3.75% today, Friday. 14k winnings + 0 HTB fee + 100% maintenance requirement 12.92k winnings + 3.75% HTB fee + 100% maintenance requirement Next time, don't wait. I chose to take the money further speculating that the Fed is taking bids for sale today and are highly motivated to sell SIVB and SBNY as they are not in the business of holding and operating banks and want to move onto the inflation battles. They will communicate the liquidation value to the OCC and the OCC will issue an information memo with the settlement value and instructions to brokers. Disclosure: I'm with Schwab.
As per yahoo OI for anything below 70 is super small: https://finance.yahoo.com/quote/SBNY/options?p=SBNY So if that's accurate, there's simply not a lot of people debating to exercise 50p or 60p this week. To my surprise bonds still trade on SBNY and might give some indication what money managers expect in terms of funds that can be recovered. Nov 01 2029 currently @ 32cents on the dollar, up a little form 20 earlier this week. So the expectation is something of value remains, but its still a huge hair cut as of today. Lets see where things stand on Monday. Bond hold should get paid out before equity holders and there are also preffered shares that would be paid out before that. Since this isn't a regular bankruptcy, but a bridge bank that basically takes over an insolvent bank, things might be different if the bank gets sold as a whole.
SBNY is a better buy than SIVB
I thought they bought SBNY ?
So what happened to the shorts/puts in SIVB and SBNY? When a stock is wiped out do the people who were correct in shorting/puts lose every thing too? I have no halted position in either just wondering since I know the longs for sure lost everything. Dont know about the shorts/puts.
Rumors that BofA is buying out SBNY. Bids due today. Like I said earlier, I would hesitate exercising any puts below 60. So many ways to get screwed. Net book value for SBNY was north of $100 per share even after portfolio losses in Treasuries. Not inconceivable to see a buy out at $50 or 60. And in the mean time, they will make sure to screw you on any borrow rates on shorts.
No shit. Want to remind me what day of the week SIVB and SBNY were seized? Also, my point still stands. FRC is a lottery ticket. No one here knows anything other than the fact that the stock price continues to move lower despite intervention measures. Do y’all seriously think that the WS banks that deposited into FRC wouldn’t be buying the everloving shit out of the stock if they thought that their deposits solved FRC’s problems?
Wow, Interactive Brokers is charging 12% and 11% for SIVB and SBNY 100% seems a bit excessive. [https://iborrowdesk.com/report/sivb](https://iborrowdesk.com/report/sivb)
Thank you for an actual, honest to God, reasonable take in this thread full of doomposting. This is an important, and I'd argue a very interesting approach. In 2008 the Fed and Federal Government were slow to respond to the banking crisis and it led to the worst economic downturn in 80 years. This time around, they're being *proactive* with the goal of preventing a liquidity crisis that tanks the entire economy in a matter of weeks. It remains to be seen if this approach is effective, but logically it should be since these steps should avoid the panic-induced bank runs that killed SVB, SBNY, and Silvergate.
Call your broke now, and tell them you want to exercise your options. A lot of brokerages are marking SBNY now at 0, so you will not even have to put up any margin. If your broker has not done that yet, just tell them you will send the money next week, and exercise your March options today. It will all be sorted next week and you will not have to send them any money. Everyone will have this marked at 0. If you do not exercise them today, you will be out $16500
It won't see $1.50, let alone $150. If you have March expiry puts, contact your broker now and exercise them. Each put you hold will be worth $5500. DO not throw that money away. All the big brokerage houses are marking SBNY now to 0, so you will not even have to put up margin to exercise them. If you have options other than March, you can wait until it opens and just close out the option.
thanks bud.. I'm on the line with Etrade now trying to exercise... I'm guessing I am 'locked' into my short position until the stock remains trading again? how do you close out a short position on a stock that (probably) will no longer exist? (given the chance SBNY goes the SIVB route and files bankruptcy? )