You later state this is not your attorney just one you spoke with. No attorney would go about offering legal advice until he was properly retained. Also you stated you ow $55,000 initially and at another point $35,000. If you are in fact being truthful you now have a sketchy attorney a $20,000 moving target.
Optionsellers.com goes bust and the apology video is painful to watch
- Thread starter Sweet Bobby
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You later state this is not your attorney just one you spoke with. No attorney would go about offering legal advice until he was properly retained. Also you stated you ow $55,000 initially and at another point $35,000. If you are in fact being truthful you now have a sketchy attorney a $20,000 moving target.
That is the problem that anyone who tries to do a direct hedge against an intra-commodity spread using current and forward months will have. In the case of NG, which is traded 12 months of the year, sure, you can just go long on front month and short the following month. The big issue there is that no matter what happens, the two/three/four/five months in the future move in sync, so you will always be effectively net zero.
Perhaps the guy pulled the plug on his long leg and hoped for the market to keep going down. So he closed his longs with a huge losing monetary value. But he was so deep into his shorts that when the contract rolled, and so many OTHER shorts HAD to close to either reduce losses (like he may have done) or lock in profits, the thing went to the moon in a day. He then got margin-called on his shorts, so he was "short-squeezed" out, because he did not have enough cash to cover the short margins. If he did, the next day he would have been made whole again by getting way closer back to his entry point, when the market retraced back almost the whole way.
What I don't get is why you would call yourself a hedge fund if you are not ALWAYS hedged with something other than the shitty calendar-spread method? Did he have any options in there to do the offsets? It seems not. I figure that is what a hedge fund is supposed to do.
I really know nothing about options, but one thing I keep seeing over and over is to never ever "sell naked options." That isn't a hedge fund, that is just a one-way discretionary fund. In fact, my broker won't let you do it in your options account unless you donate a leg and sign away all your future children to their custody.
(Well, not really, but they take it seriously, heh.)
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I'm not sure what you are getting at here. We searched online to see what was being said about the debacle at OptionSellers.com and came across the Chapman/Albin law firm's website advertising the class action lawsuit. We called for the "free consultation" and during that conversation, asked if we should pay the balance. As far as the discrepancy in what we owe - we had two accounts (IRA with debit balance of $35,000 and taxable account with debit $20,000) which totals $55,000.
I came to this post to get some information and to perhaps share information with other victims. Your implication that I am not being truthful is not helpful. I'd really appreciate it if you'd simply ask for clarification before assuming such things.
My God. I have a ton of the advertising materials which give bios of some of the investors, along with their recommendations of the firm. It's actually quite sad to look at that material now as they all seem to be decent, hardworking people who have lost everything invested, plus some.
I am on this page to gather and share information. If you need clarification, simply ask.
No his clients not only lost their deposits but now also owe money to the hedge fund's broker because the fund got margin-called and the fund doesn't money to meet the margin call. All of client accounts are now in debit balance.
And now they’ve deleted the video!
Lead story now on Zero Hedge. https://www.zerohedge.com/news/2018...-catastrophic-loss-event-natgas-short-squeeze
Wow. Unbelievable. I was able to download the video earlier today using savemedia.com, as I had a feeling it would disappear. I just tried to upload it here but was unsuccessful - maybe it's too large?
It's perfectly clear that this guy, James Cordier, has a history of issues and problems. It does make anyone placing money with such person, gullible and poorly informed.