Silvergate Capital Stock Soars After Block One Founder Becomes Largest Shareholder

On CNBC's "Options Action," Brian Stutland of Equity Armor Investments said Silvergate Capital Corp. SI traded 2.5 times its average daily call volume on Wednesday.
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Options traders are “betting that good things are ahead” for Silvergate Capital, he added.

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There were buyers of 1,000 of the December 40 calls at an average price of 35 cents per contract, Stutland mentioned. Traders expect Silvergate Capital’s stock to rise by at least 42% by December expiration, he added.

Silvergate Capital has been “a perfect proxy for Bitcoin” but recently “broke low,” and traders expect it to “twiddle back up” and lock step with again with the world’s largest cryptocurrency, which is why they are “playing it to the upside,” Stutland stated.

SI Price Action: Shares of Silvergate Capital had risen by 11.49% to close at $28.15 on Wednesday.