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Option Trading

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Margin Calls and Delisted Stocks: Turmoil for Traders in Silicon Valley Bank and Signature.

Originally Published 2 years ago — by MarketWatch

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Source: MarketWatch

Thousands of retail option traders who made bets against shares of Signature Bank and Silicon Valley Financial Group were left in limbo for weeks after trading in both companies was halted. Traders turned to social media platforms for answers and support, and a social media pressure campaign ultimately helped to push some brokers to help make customers whole. Even afterwards, some traders were left with huge margin-call balances that left them potentially exposed to tens, if not hundreds, of thousands of dollars of risk.