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Silvergate Capital Stock Hits Record Low

Options traders are weighing in on the news

Deputy Editor
Mar 9, 2023 at 10:37 AM
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Silvergate Capital Corp (NYSE:SI) is winding down operations and liquidating its Silvergate Bank, according to a statement from the crypto lender. This update comes about a week after the company brought into question its own viability following the crash of FTX, and follows a fallout with high-profile partners Coinbase Global (COIN) and Galaxy Digital.

Shares of Silvergate Capital stock are plummeting in response, last seen down 39.6% to trade at a new all-time low of $2.83. With things heading south for quite some time, SI sports year-over-year and year-to-date deficits of 96.1% and 71.8%, respectively.

The options pits are exploding with activity. Already today, more than 122,000 puts and 58,000 calls have crossed the tape, which is five times the intraday average volume. Most popular is the March 2.50 put, followed by the 2.50-strike put in the weekly 3/10 series. 

Silvergate Capital stock has also found its way onto the short sale restricted (SSR) list. Shorts were already exiting their positions ahead of today, with short interest down 3% int he last two weeks. Now, the 19.61 million shares sold short account for 71.3% of SI's total available float.

 
 

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