Does anyone know for a fact what happens to people thats holding long puts on companies that gets siezed? such as what happened to SVB and whats happening now to FRC?
the thing i heard some people say are “equity are last to get a piece” to answer this question
except that doesnt make sense to people holding derivatives as derivatives =/= equities. not to mention, the people that were short puts were required to pay up.
But especially the fact that with options, there is always the opposite end of the trade. meaning, if there is an open long put, there is someone (or something) that is short that put.
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