SBNY Signature Bank next to Collapse? If you haven`t bought those 5X puts:
Then you should know that Signature Bank's stock experienced its worst day on record following the collapse of SIVB Silicon Valley Bank and SI Silvergate.
Due to high volatility, trading was suspended earlier in Friday's session, and the stock has continued to decline for five consecutive sessions.
This downturn was triggered by the closure of Silvergate, the second major bank serving digital assets companies, as well as the regulatory shutdown of Silicon Valley Bank, the 18th largest bank in the United States.
It has been reported that Signature Bank had exposure to FTX.
I am still bearish on the company and i believe it will reach the $34 - $63 area soon!
Looking forward to read your opinion about it!
Sbnystock
SBNY Signature Bank exposure to FTXOn December 21 Fitch Ratings revised Signature Bank's (SBNY) 'BBB+' Long-Term Issuer Default Rating (IDR) Rating Outlook to Negative from Stable.
On Jan 10, a team of analysts led by Ken Usdin downgraded SBNY Signature Bank to Hold from Buy, and slashed their target price to $124 from $185.
SBNY Signature Bank said that it had an exposure to FTX of less than 0.1%.
They also announced a reduction is crypto exposure, of which Jefferies analysts said:
“Signature Bank’s decision to shrink its crypto deposits by $8 billion to $10 billion and replacing with wholesale borrowings at 4.25% will drive a significant net interest margin reset in the coming quarters,”, which is a key profitability metric for banks.
Looking at the SBNY Signature Bank options chain ahead of earnings , I would buy the $75 strike price Puts with
2023-6-16 expiration date for about
$4.45 premium.
If the options turn out to be profitable Before the earnings release, i would sell at least 50%.
Looking forward to read your opinion about it.
