Call Options on FRC on 4/24/2023

First Republic Bank (FRC) provides private banking, private business banking, and private wealth management services to clients in metropolitan areas in the United States. 

It operates in two segments, Commercial Banking and Wealth Management.

The company accepts deposit products, such as noninterest-bearing checking, interest-bearing checking, money market checking accounts, money market savings accounts, and passbook accounts, as well as certificates of deposit.

In addition, it provides wealth management services, which include various investment strategies and products, online investment management, trust and custody, full service and online brokerage, financial and estate planning, and access to alternative investments, as well as investing, insurance, and foreign exchange services. 

Shares of this stock tumbled after Silicon Valley Bank failed. Major banks agreed to deposit $30 billion in FRC to shore up its balance sheet. This stock's behavior is similar to Western Alliance Bank (WAL). The latter also tumbled following SVB failure and after reporting its earnings last Wednesday, shares have moved higher. We expect a similar outdome for FRC as WAL. FRC reports today after the close.

We will trade May 19th options

Last Trade: $14.26

Trading Range: $11.52 - $171.09

Trade Buy 1 May $15.00 Call at $2.60 For a net debit of $2.60 Profit/Loss Analysis Breakeven at $17.60 Maximum profit is unbounded Maximum loss is ($260.00) at strike of $15.00 Closing Summary Sold 1 May $15.00 Call at $0.00

Position closed on 5/2/2023 at price of $0.00 with a -100.00% loss in 7 days.

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