Trade Alert: Regional Banks
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Trade Alert: Regional Banks
Out of a bet against FFWM for a gain of 200% today; looking for more.
Los Angeles’s Far East Bank gets a large, unscheduled withdrawal (Heat, 1995).
Regional Banks Tank
It’s been a rough day for regional banks, as ZeroHedge notes here. Back in March, I posted three trades against regional banks, one of which was First Foundation, Inc. ( FFWM 0.00%↑ ). I bought the $7.50 strike, October expiration puts on it for $1.
Last week, I had placed a good ‘till canceled limit order to exit those puts at $3, and it was filled today. To be honest, had I not had that limit order in place, I probably would have held at least some of those puts here for a bigger gain.
I’ll do some more research today and see if I can find another regional bank that’s still worth betting against after today’s drop.
Apologies, I missed a glaringly obvious one yesterday: PACW. I thought about putting in a limit order to buy $3 strike puts on it last night, as the situation seemed analogous to FRC last Thursday, but I didn't. Now it just imploded after hours.
you may also want to look into KRE, which encompasses the entire regional bank sector