FRC

[zelmo]

Friday was not an options expiration date.

[boneil]

Friday was not an options expiration date.

FRC had weeklies

Are there any stocks that don't have weeklies?

[zelmo]

Fair enough. I never traded weekly options and wasn't thinking of them. Those would be irrelevant to the discussion wouldn't they? The price would be pegged to the closing price on Friday. As I said earlier in the money options are exercised automatically by reputable firms.

[NitroZ7]

Here is a recent post from WSB from a Robinhood put owner.

The OCC has released guidance allowing FRC put holders to cash out and exercise their puts. Multiple brokerages like IBKR and Fidelity are allowing put holders without shares to exercise into a short position if they have enough cash collateral.
Robinhood is also allowing FRC put holders to exercise. However due to their policy against short selling, most put holders are unable to exercise and cash out.

[zelmo]

So there is a problem for those who use Robinhood. Shocking.

[NitroZ7]

So there is a problem for those who use Robinhood. Shocking.

Others are still having problems on other platforms as well if they didn't own shares and were long puts. Apparently you need to have a margin account and enough collateral to exercise through the short position method. It sounds like alot of people had the May 5 expiration.

[zelmo]

So we have a firm that doesn’t allow short positions and players that don’t have a margin account or funds to meet the minimal requirements. Hardly a catastrophe.

[NitroZ7]

So we have a firm that doesn’t allow short positions and players that don’t have a margin account or funds to meet the minimal requirements. Hardly a catastrophe.

Not a catastrophe for me but it is entertaining to watch the chaos. Apparently they will be able to deal with the options positions tomorrow as the new shares FRCB start trading in the OTC. Just amazes me that when you have a $295,000.00 gain with a week left to expiration and the looming threat of a bank being seized that you wouldn't just take your gains and move on.

[zelmo]

What will that gain be when the position is now closed? Looks to me like it was the right move.