Stock Traders Face Massive Margin Calls and Plunging Values Amid Bank Failures and Market Turmoil

Options traders who bet against Signature Bank and SVB Financial Group by owning puts, options that confer the right to sell shares at a stated price by a certain date, found it difficult to cash out after the banks failed and were taken over by regulators, essentially wiping out the value of their shares. This outcome should have been good news for investors owning puts, but many found it unexpectedly costly.