Can First Republic Bank Be Saved?

The stock is hovering just above its all-time lows

Deputy Editor
Mar 16, 2023 at 12:44 PM
facebook twitter linkedin

First Republic Bank (NYSE:FRC) is 13.3% lower this afternoon, last seen trading at $27.03 following reports that the bank could be saved and options traders are taking notes.

According to a Bloomberg report, First Republic bank is looking for strategic options, including a potential sale. Separately, The Wall Street Journal reported that JPMorgan Chase (JPM) and Morgan Stanley (MS) are among the firms having deal talks with the embattled bank.

Just past the session's halfway mark, 178,000 puts and 111,000 calls have been traded -- 15 times the average intraday volume. Positions are being opened at the top 10 contracts, led by the March 10 put.

S&P Global Ratings and Fitch Ratings yesterday cut their ratings on FRC to junk. Coming into today, 10 of 19 firms still rated First Republic Banks tock a "strong buy," while the 12-month consensus target price of $138.79 is a 430.5% premium to current levels. This leaves the equity open to more downgrades and/or price-target cuts.

First Republic Bank stock kicked the week off by slipping to an all-time low of $17.53. Though it's holding just above that level today, FRC is still down more than 84% over the last 12 months, and sports a 78% year-to-date deficit.


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners