Wednesday, 3 May 2023

US regional bank stocks draw bearish options bets despite bounce

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The 30-day implied volatility on the SPDR S&P Regional Banking (NYSE:KRE) ETF, which measures traders' expectation for near-term price swings, stood at 46 on Wednesday, just shy of the one-month high of 47 hit on Tuesday, signaling little letup in investor fears despite JPMorgan Chase & Co (NYSE:JPM)'s weekend rescue of First Republic Bank (NYSE:FRC).


Shares sank as much as 21% intraday, adding to a 20% plunge in the prior session after a Hindenburg Research report sent the stock spiraling in its worst one-day drop on record. Carl Icahn, who is chairman of the board at the holding company, saw billions erased from his fortune by the rout, as Hindenburg took aim at one of Wall Street's most famous activist investors.






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