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commented on a stock·May 4, 2023 09:48

The mythical "short squeeze"

$First Republic Bank(FRCB.US)$ Wonder where all the people who were calling for short squeezes to 10 - 30 dollars have gone to?
On a serious note, hope that people who read my previous posts followed my expected trading range for FRC after moving to OTC and sold out above 30c.
For the brave souls who want to long this counter, I suggest waiting for 10-15cents. But honestly, why would you want to buy any regional bank shares in this crazy climate? Better off keeping y...

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commented on a stock·May 3, 2023 07:41

FRC to OTC: The final chapter

$First Republic Bank(FRCB.US)$ The move to OTC is far quicker than expected. This changes my forecast of events for shareholders and options holders from my previous post titled: "For the people who are asking what will happen to their money"
Shareholders of FRC will now be able to sell their shares at the prevailing OTC exchange prices. As mentioned in my previous post, expecting a 10c to 1 dollar range. Definitely no possibility of ridiculous prices like 10 dollars...

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commented on a stock·May 2, 2023 07:59

FRC to OTC: What does this mean for short sellers of the stock?

$First Republic Bank(FRC.US)$ I am writing this post to disprove some misconceptions and misinformation about the possible demotion of FRC to the OTC exchange and what it means for short sellers of FRC prior to its suspension.
OTC(Over the counter) exchange is a place for counters who fail to satisfy the normal criteria to be listed in the ordinary exchanges like NYSE or NASDAQ. As such, OTC counters can be said to be high risk plays...

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commented on a stock·May 2, 2023 04:48

For the people who are asking what will happen to their money

$First Republic Bank(FRC.US)$ For people who bought ordinary shares, there will be no payout by JPM or the government. Since the JPM deal only involves the takeover of assets and deposits, and not a full and total merger, FRC will remain as a shell company with its corporate debt and liabilities and minimal assets. Consider FRC as a pizza with all its delicious fillings removed by JPM, leaving the sad crust crumbs as the shell company ...

101802833OP 102597866: pretty much yes. I just made this post as I'm frustrated at all the hopium and copium posts by other ppl saying irresponsible things like FRC to unhalt and rocket to 40 dollars or FRC shares to be converted to JPM shares, which is all patently untrue and nonsensical

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101802833OP 70108039: apologies, the post refers to options bought or sold before the suspension. if you are holding options now, you belong to the category of options buyers I detailed above. I have edited my post accordingly

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101802833OP 潜力股火热招商中: option sellers are people that sell the calls or puts to buyers. the buyers are the ones that have the choice to exercise the options, not the sellers. these people get the cash from selling these options, and after suspension, have no fear of having these options exercised against them

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101802833OP 潜力股火热招商中: I think you are misunderstanding the terms that are being used. The word "option" can refer to either calls or puts. "Option buyers" refer to buyers of call options or put options, while "Option sellers" refer to sellers of call options or put options.
The scenarios I have laid out in my posts refer to either buyers or sellers of these call or put options before the JPM deal and suspension. Since you have indicated that you have the put option now, this means you are a put option buyer before the suspension. However, when a counter is suspended, options, whether it be puts or calls, are unable to be exercised. Options can only be traded or exercised if the underlying asset, in this case FRC shares, are being traded on the exchange. Therefore, even if you have the intent to exercise your puts, you will not be able to do so as FRC is currently suspended from trading. So even if you technically could have lots of profits from the exercising of your puts, you will be unable to realize these profits as put exercising is not allowed.To your second point, put sellers do not need to buy the stock back at strike price. If FRC is not suspended, the put buyers are the ones to exercise the option to sell the FRC shares at the strike price, which means the put buyers are the ones that are obligated to buy FRC shares to exercise the put. But, since FRC is suspended, and there is no way for these puts to be exercised, the put sellers walk away with the money they got from selling the puts before suspension, while the put buyers who spent money to buy the options end up with nothing as they are unable to exercise or sell the puts back as FRC is suspended, making put sellers the biggest winners, while put buyers the biggest losers. Same applies to call sellers and buyers. Hope this clears things up.

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101802833OP 潜力股火热招商中: I see what you mean, but the rules for options are that they can be exercised by the holders of these options, or traded around by buyers and sellers of these options (be it puts or calls), if the underlying asset is also freely traded on the market. In FRC's case, since FRC shares themselves are suspended, these contracts are considered null and void and cannot be traded or exercised by the option holders. Therefore, the only people who are even walking away with any money in this case, are the call and put sellers who sold these options before the suspension. They are not obligated to return the money they got from the option buyers after FRC is suspended.

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commented on a stock·May 1, 2023 09:55

Who truly believes JPM is going to rescue FRC shareholders?

$First Republic Bank(FRC.US)$ If you think the JPM deal involves them acting like a charity and rescuing FRC shareholders, on top of buying FRC assets and deposits (insuring them 100%), I want the number of your drug dealer. LIke c'mon people, you really think JPM is so generous to convert FRC shares to JPM shares, or allow FRC shares to rocket to 15 dollars or 50 dollars? If so, I really want what y'all are smoking, cuz thats some good ...

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