Someone bought a thousand FRC puts with a strike price of 0.5

Here are three things today, all related to liquidity:

1. The latest Federal Reserve H.4.1 report shows that the Federal Reserve's FIMA facility has been used, to the size of $60 billion. Because the facility requires collateral against government bonds, the market assumed that a central bank was responsible for putting up such a large amount of collateral. Liquidity is now very tight.

2. Deutsche Bank fell 10% in the premarket, with bonds and equities selling off at the same time. Separately, Deutsche Pfandbriefbank AG became the first European bank this year to forgo a call on AT1 bonds.

3. European Central Bank President Christine Lagarde told EU leaders that the ECB was fully prepared to provide liquidity to the eurozone financial system if needed.

Shorting of banks and real estate continues. But some companies are so unfamiliar that I'll just list them:

$Deutsche Bank AG(DB)$

buy$DB 20230421 9.0 PUT$  or  buy$DB 20230519 8.0 PUT$$Ares Capital(ARCC)$

Ares Capital Corp is a closed-end specialty finance firm based in the United States. Its investment objective is to generate current income and capital appreciation through debt and equity investments. The firm is focused on investing primarily in mid-market U.S. companies with investment opportunities, as well as large corporations. Its portfolio consists of first lien senior secured loans, second lien senior secured loans and mezzanine debt (junior unsecured loans), which may include a diversified equity component by industry and sector. The company may invest in a smaller proportion of preferred stock and common stock. Its income consists mainly of interest and dividend income from its investments.$SL Green(SLG)$

buy $SLG 20230519 20.0 PUT$ or buy $SLG 20230519 15.0 PUT$

SL Green Realty Corp., an S&P 500 company and the largest office landlord in Manhattan, is a fully integrated real estate investment trust (REIT) focused primarily on acquiring, managing and maximizing the value of commercial real estate in Manhattan. As of June 30, 2020, SL Green held interests in 96 buildings with a total area of 41 million square feet. That includes an ownership interest in 28.7 million square feet of buildings in Manhattan and 11.2 million square feet of debt guarantees and preferred equity investments.

$Nu Holdings Ltd.(NU)$

sell$NU 20230519 5.0 CALL$ or sell $NU 20230519 4.5 CALL$

Nu Holdings Ltd is engaged in providing digital banking services. It offers a variety of financial services, such as credit cards, personal accounts, investments, personal loans, insurance, mobile payments, business accounts and rewards. Most of the company's revenue comes from Brazil.

$On Holding AG(ONON)$ I'm a spectator of this company now. You can see why by looking at the share price. The bears and bulls are fighting the streets. I suspect the big bear ran his second marathon in these shoes and went short in anger.

​$ONON 20230721 25.0 PUT$ or $ONON 20230721 22.5 PUT$

Finally$First Republic Bank(FRC)$ Lottery options in every sense of the word

​$FRC 20230421 0.5 PUT$ or $FRC 20230421 1.0 PUT$

Very topical, but it doesn't seem to do much more than justify itself as a dead short on FRC.A counter-intuitive rule of thumb is that if someone buys an extreme put option at what looks like a bottom, they probably are.

# Options Hub

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Report

Comment31

  • Top
  • Latest
  • HardyJenny
    ·2023-03-25
    This bank has suffered severe damage and the stock price has been reset accordingly. If this bank can indeed be saved, this may be a good entry point, but that remains to be seen. We are not completely out of the woods yet, and going to zero is still very much a possibility if it can not be saved. Good luck!
    Reply
    Report
  • BenedictMill
    ·2023-03-25
    If this bank wanted to go bankrupt, it would have announced it by now, but it is looking to return to business 🔥🔥🔥🔥🔥
    Reply
    Report
  • BorgPetty
    ·2023-03-25
    We could see some press releases tomorrow as a result of JPM and other major banks meeting in DC to resolve FRC’s current bank run problems.
    Reply
    Report
  • delusion梦碎
    ·2023-03-25
    I can not see how FRC doesn't recover from this. Too much political and private money went in to assure liquidity. They may raise some capital which will be dilutive.
    Reply
    Report
  • AugustineMac-
    ·2023-03-25
    The downgrade of FRC debt by Moody's and others raises the cost of capital if raised by issuing debt.FRC is not in my opinion going to seek bankruptcy, and will likely see the stock price stabilize around 30 per share.
    Reply
    Report
  • DdAlpha1
    ·2023-04-27

    Great ariticle, would you like to share it?

    Reply
    Report
  • rinl
    ·2023-03-25
    thanks for sharing
    Reply
    Report
  • icycrystal
    ·2023-03-25
    thanks for sharing
    Reply
    Report
  • meurasian77
    ·2023-03-25
    thanks for sharing
    Reply
    Report
  • hphoa
    ·2023-03-27
    k
    Reply
    Report
  • henghm
    ·2023-03-27
    like
    Reply
    Report
  • ongcjeric
    ·2023-03-27
    Hh
    Reply
    Report
  • Joashua
    ·2023-03-27
    ook
    Reply
    Report
  • KSR
    ·2023-03-27
    👍
    Reply
    Report
  • fongms
    ·2023-03-26
    g
    Reply
    Report
  • 淋淼淼
    ·2023-03-26
    Ok
    Reply
    Report
  • Danny330
    ·2023-03-26
    好的
    Reply
    Report
  • kong1509
    ·2023-03-26
    Ok
    Reply
    Report
  • Acip Sudirja
    ·2023-03-26
    ok
    Reply
    Report
  • Bullcowox
    ·2023-03-26
    Good
    Reply
    Report