To The Moon

In theory, when the Fed released liquidity to rescue small banks, the run on banks should be over and bank shares should rebound.

But it's too early to cheer from an options move perspective, and the bears may still be playing with the FOMC.

There was a big order yesterday of $First Republic Bank(FRC)$ put options expiring this week with a strike price of 10:

• ​$FRC 20230324 10.0 PUT$ 

Coincidentally, the $SPDR S&P Regional Banking ETF(KRE)$ also saw a large volume of put expiring this week:

• ​$KRE 20230324 39.0 PUT$ $KRE 20230324 39.0 PUT$ 

My assessment of these two lists is: general reference. It's more like an earnings deal, not like a big deal with an inside story. It would have been more credible if it had been traded before yesterday's crash.

KRE also had a sell put order yesterday: $KRE 20240119 22.0 PUT$ $KRE 20240119 22.0 PUT$ 

I specifically do not recommend trading this order, but it is necessary to mention it. The S&P 500 has the advantage of automatically iterating a basket of stocks, companies may fail, but the S&P 500 has steadily risen. So you're willing to buy the S&P 500ETF(SPY)$. But would a switch to another etf work?

Those who have been trading US stocks for several years should remember that there have been several ETF breakdown events under extreme market conditions, such as crude oil ETF and VIX ETF. While this is common with leveraged ETFs, it is hard to say whether a breakdown of a certain magnitude would pose a liquidation risk for KRE.

If you're really going to sell it, you might as well sell: $BAC 20240119 20.0 PUT$ $BAC 20240119 20.0 PUT$ 

Some stocks are good for an extreme sell put, but for others, an extreme strike price means nothing.

In addition to the two big bandwagon bearish orders above, the last mentioned $Financial Select Sector SPDR Fund(XLF)$ bearish order $XLF 20230616 28.0 PUT$ $XLF 20230616 28.0 PUT$  has not been closed. When the put order began to close the position, I believe that the banking plate crisis in the past.

By the way, Pinduoduo options move. Yesterday Pinduoduo financial report fell sharply, once fell to 75. The options long/short battle is fierce.

The big orders yesterday were sell put and buy put.

PUT options put below 80: $PDD 20230616 80.0 PUT$ $PDD 20230616 80.0 PUT$ 

Forward sell put see above 70: $PDD 20240119 70.0 PUT$ $PDD 20240119 70.0 PUT$ 

Pinduoduo's current trading direction has to take sides. Both bulls and bears are extreme. Bears buy put, bulls sell put.

The problem is that the pdd fell 80, and the China-related stocks cannot not react. I checked other stocks or ETFs that don't have heavyweight layouts. We can keep watching over the next two days