Could I be scammed?

Quote from opt789:

It is not legal for someone to charge a percentage of profits to a non-accredited investor. Every state is different but most require anyone charging for investment advice to register with them. If this person is charging people now and is not registered please report them to the NASD, SEC, and your state regulatory agency. It is possible that it is a scam, but it is extremely likely that, at best, he is a well meaning but completely unqualified individual who will lose you money in the long run. Passing NASD exams because you worked at a brokerage once is meaningless.

Never let anyone manage your money without thoroughly investigating them, their attorney, and their CPA. Ask for an independently audited track record, and check that it was actually audited. Ask what state and federal agencies he is currently registered with, and ask for evidence that all his clients are accredited ($1M net worth or $200k income). If you cannot get all these things then you know not to do it.
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I don't think this is true...
CTA's and CPO's do it all the time...
Look at Superfund...
Look at small managed futures funds that don't require accredited investors and have (relatively) low mins...

Maybe you are talking about something else...
 
Quote from 1coolstrawberry:

Wow, such a difference in what toe people think is right. Anyone else care to weigh in w/ their perspective?

Thanks.
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I could be wrong. I really don't know. But I guess that's why lawyers are always busy...
 
Quote from PohPoh:

I don't think this is true...
CTA's and CPO's do it all the time...
Look at Superfund...
Look at small managed futures funds that don't require accredited investors and have (relatively) low mins...

Maybe you are talking about something else...
More...
I was referring to the purview of the SEC not CFTC.
"In the U.S., laws require that the majority of investors in the fund be accredited. That is, they must earn a minimum amount of money annually and have a net worth of over $1 million, along with a significant amount of investment knowledge."
"The reliance on exemptions from securities registration (state and/or federal laws) limits the number of participants who must also satisfy accredited investor or institutional investor definitions."

Why in the world would you be searching for an option trader to manage your funds? Are you aware the vast majority of mutual funds, hedge funds, and CTAs do not consistently beat the market on a risk adjusted basis?
 
"Why in the world would you be searching for an option trader to manage your funds? "

I wanted a strategy that would make money in bull and bear markets.

Why do you?
 
I mean no offense but do you know anything about the markets, options, realistic and sustainable risk/reward ratios? What kind of average annual return do you hope someone can make you after all costs and fees?
 
No offense taken. I was looking for someone who would manage a portion of my portfolio. Not the whole thing. I've been given this and no, I don't know much except what I've tried to learn in the last several months since I've gotten it. I've spoken to some more conventional money managers associated w/ Brokerage houses and didn't like any of them. I've gone to IBD groups, subscribed to Morningstar and IBD and some Motley Fool newsletters. Trying all the time to get up to speed but as they say, a little bit of knwledge can be a dangerous thing. Then someone told me about options and it sparked my interest bc it seemed (am I wrong) that it could do well in up or down markets. I'd stll like to have a more conventional money manager manage most but haven't found who that is yet.

Can you tell me why you trade in options?
 
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