Short
SBNY Signature Bank exposure to FTX
On 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.
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.
Trade closed: target reached
SBNY was trading at $61.37 today. Puts trading at $21.25 from $4.45 when i wrote this article. This was a 4.77X gain. Even +500% at some point intraday!
In my group the strike price was $65 and the puts were up 7X when we closed.
Congrats for all of you taking this call!
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TradeNation bit.ly/t10X
CRYPTO partner.bybit.com/b/37880
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Private SIGNALS patreon.com/PremiumOptionsSignals
Trading COURSE bit.ly/tradex
RESULTS bit.ly/TG10x
TradeNation bit.ly/t10X
CRYPTO partner.bybit.com/b/37880
BUY-SELL INDICATORS tradingindicators.store/
Trading COURSE bit.ly/tradex
RESULTS bit.ly/TG10x
TradeNation bit.ly/t10X
CRYPTO partner.bybit.com/b/37880
BUY-SELL INDICATORS tradingindicators.store/
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.