The small guy, well, smaller guy, doesn’t always lose these cases. He had a portfolio margin account with lots of options. Sounds like he met the margin call during the Covid crash, but their margin dept didn’t notice and blew him out anyway.
https://financialadvisoriq.com/c/40...ust_nearly_liquidating_options_trader_account
https://financialadvisoriq.com/c/40...ust_nearly_liquidating_options_trader_account
On March 13, 2020, as the markets were sinking amid the onset of the Covid-19 pandemic, Fidelity liquidated some of Perelmuter’s options, resulting in losses of about $2.33 million, according to Bradley. When the margin call was made, Perelmuter pledged to provide a cash infusion of about $9 million to cover the margin, “but before they recognized it the margin department liquidated many of his positions,” Bradley told FA-IQ.
The arbitrators also denied Perelmuter’s claims for punitive damages and reimbursement of legal fees.
https://financialadvisoriq.com/c/40...ust_nearly_liquidating_options_trader_account
https://financialadvisoriq.com/c/40...ust_nearly_liquidating_options_trader_account
On March 13, 2020, as the markets were sinking amid the onset of the Covid-19 pandemic, Fidelity liquidated some of Perelmuter’s options, resulting in losses of about $2.33 million, according to Bradley. When the margin call was made, Perelmuter pledged to provide a cash infusion of about $9 million to cover the margin, “but before they recognized it the margin department liquidated many of his positions,” Bradley told FA-IQ.
The arbitrators also denied Perelmuter’s claims for punitive damages and reimbursement of legal fees.