Silicon Valley Bank has FAILED, becoming the largest US bank failure since 2008

[Entropy]

There was a campaign on Twitter to get the brokerage houses to exercise the puts on the halted banks. I don't know about $SIVB but the campaign did work for $SBNY at several brokerages. Even RobinHood let their customers exercise the put options without even needing cash collateral.

So if you had 10 contracts of the March 17th 50 puts for $SBNY the brokerage exercised them and now you are short 1000 @ $50. If the stock never trades again then you get $50,000 in your account. Or if it trades on the OTC for a few pennies then you can cover your short position.

This is the first time I have ever seen this happen.

My thirtysomething meme stock trading freind feels like he got fucked hard. Last week he bought a shit ton of 2025 CS .40 puts for literal pennies. Now he sits there for 2 weeks about how they going bankrupt and how SVB just went to zero and hes counting the money. Now they announce the buyout and hes again counting the money….. the someone tells him the shares are still worth .50

Thinks the game is rigged in his mind because he went from being up 600K to losing 10k

It doesn't mean the system isn't rigged. There are some controversial aspects to the SVB bailout that almost nobody talks about.
https://www.trunews.com/stream/sheke...eli-tech-firms