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He ruined his life for nothing! That algorithm is probably, worthless by now. He lost precious time he could have used developing his own trading algorithm. In addition, who is going to trust a thief? He is supposed to be a real smart guy yet, cannot design his own algorithm? Even for the sake...

It won't hurt to consult your attorney. It is quite possible that the SEC might find violations of securities laws as far as the actions of the broker. The bad thing which might absolve the broker is the POA which you executed allowing Optionseller.com to trade your account. Now, the broker can...

Your attorney probably, can give you better advice than me. One last thing, you can consider filing a complaint with the Securities and Exchange Commission which is in charge of the brokers too. Consult your attorney on what is the best approach. Just throwing one more idea out to discuss with...

The broker could be held liable in the IRAs case. Most brokers will not even allow you to trade options outside of covered calls meaning you have to have the stock at hand before you can sell a call. Fidelity Investments allow only covered calls for IRAs. TD Ameritrade will allow you to buy call...

There is no excuse for not managing the risk considering he was trading probably, tens of millions of dollars all at once. Greed probably, took over and he figured the worst case scenario will never happen. So, he passed on the insurance. That is buying a higher strike calls to hedge his...

If they instead opted for a bear call spread, the returns would be lower but, there would not be a blowout. They can keep collecting their fees and also, get more clients? And even their clients would have accepted a large loss that did not totally wipe them out. They will just charge it to a...

Converting to a strangle would have put monies into your pocket but, the premiums collected would be very little to offset the huge losses. A better way would have been to instead, of naked calls, you sell OTM call at a lower strike price, buy a higher strike OTM call. That would be a bear call...

Sorry for your losses. I had suspicions Optionsellers.com did not tell investors the whole story. Selling naked calls is very risky as a trading strategy and losses to the upside is unlimited! Any options book will tell you that. They certainly, did not do enough to mitigate any possible losses...

The time for risk management is when you first place the trade considering he was trading in the millions of dollars. Instead, of naked calls, he could have traded bear call spreads. Sell an OTM call and buy an OTM higher strike call. If both calls expire worthless, you keep the premiums. If it...

Risk management applies to naked calls as well! What you do is buy a higher strike OTM call in adverse cases like this. That way, you limit your losses. I say limit because you will still suffer huge losses but, not blow up your account. I lost thousands trying to sell calls but, I had the sense...

Sorry about your loss. When you first signed up with Optionsellers.com, were they already trading naked calls? And were you aware of the huge risks they were taking with your monies? Since, it was mentioned some people had IRAs with them, I am thinking a lot of those investors were not aware of...

They probably, have been selling naked calls for years and figured that they have it in the bag! However, the risk profile for selling naked calls is the risk is unlimited to the upside! When, there is a big run up, now you have to cover quick because the losses keep piling on! If the calls are...

Whether you are a hedge fund or retail trader, risk management must be part of your trading plan or you will blow up your account! The only question is when? Greed probably, over ruled risk management because they figured, why spend monies to protect your position when we can put those monies in...

It seems they had naked calls where the risk is unlimited to the upside. For supposedly, experts in selling options for premium, they should have known better! Atleast, buy a higher strike call to mitigate some of the risk. They were arrogant for their own good!

Good for you. I am an options buyer nowadays. I like the limited risk on worst case scenario. With lots of upside on calls and puts.

Thanks for the kind words. This has value for retail traders in what not to do. Selling naked calls is very risky. I lost thousands trying to sell calls but, I bought a higher strike call to mitigate moves against my position or I would have lost more. I sold bear call spreads.

These guys did not have any risk management to their trading. Here is an article with more details. https://www.johnschapman.com/investment-fraud/optionsellers-investment-loss-recovery/

You have the right to your opinion as I have to mine. I will leave it at that!

Never understood risking huge sums to make a little. Risk vs reward, reward must be multiples larger and risk smaller. My guess is no risk management on top of that! If you keep gambling, the house eventually, wins!

A number of no good liberal RINOs lost their seats. That is less liberals fighting President Trump at every turn. Somehow Democrats run as Republicans until in office to show their true colors! You have Arlen Spector, Lincoln Chafee, Charlie Christ, Jeff Flake, Susan Collins, Lisa Murkowski...