He should have shown the guy with a pair of pliers to his big toe and making him groan at just the right inflection points.
Optionsellers.com goes bust and the apology video is painful to watch
- Thread starter Sweet Bobby
- Start date
He should have shown the guy with a pair of pliers to his big toe and making him groan at just the right inflection points.
You can to this with your IRA, it’s just that many of those incur taxes due by the IRA (at least if you make money) and most custodians are unwilling to do the UBTI paperwork for borrowing. In practice, traditional retail brokers will offer limited margin or nothing, and maybe a few lower risk options or futures premsisions, but this is entirely due to their choice and not the law. The IRS rules prohibit a few types of investments, including collectibles, S corps, and life insurance, but aside from these, anything is fair game if your custodian is willing.
https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-iras-investments
On the prohibited transaction front, here is some information.
https://sdirahandbook.com/prohibite...g-what-can-self-directed-ira-investors-learn/
True, like you can borrrow using a non recourse loan for a real estate investment using IRA funds where the portion of income attributable to the percentage of the loan is taxable. I was speaking very generally.
I have read through a few custodial agreements and futures accounts agreements. Custodial agreements make it clear the custodian is not liable for for losses, or determining suitability of investment. Futures account agreements make it clear the client is always liable for debit balances. I don’t know where this goes for IRA investors. I hope they can at least avoid the debit balance and possibly get a judgement against FC Stone for breaching fiduciary duty.
QUOTE="Overnight, post: 4762637 Him deleting the vid from his channel didn't save him. Everyone's got it now.
/QUOTE
Should've at least made the video unlisted and just send the link to all of clients only. He thought he could garner some sympathy by appearing to be suicidal but it backfired on him. Just shows how showy and confident he is about himself. If he's really sorry about what he did and thinks these people are really his family, he, not his secretary, not the admin. assistant (who's been mending the phone ever since ) but himself should've called every single 290 of his clients and personally apologized to them telling them how sorry he is and discuss their next step together how to handle the accounts and the debit balances, working with FC Stone on their behalf, offer to pay for the debit balances from the fees, recommending professionals like tax accountants and etc...he should still take on the responsibility of managing their accounts although all of the clients would not want to at this point but he should at least actively offer his assistance and help, not just put on a public video saying "sorry about your loss" and then that's it.
What a douche.
Should've at least made the video unlisted and just send the link to all of clients only. He thought he could garner some sympathy by appearing to be suicidal but it backfired on him. Just shows how showy and confident he is about himself. If he's really sorry about what he did and thinks these people are really his family, he, not his secretary, not the admin. assistant (who's been mending the phone ever since ) but himself should've called every single 290 of his clients and personally apologized to them telling them how sorry he is and discuss their next step together how to handle the accounts and the debit balances, working with FC Stone on their behalf, offer to pay for the debit balances from the fees, recommending professionals like tax accountants and etc...he should still take on the responsibility of managing their accounts although all of the clients would not want to at this point but he should at least actively offer his assistance and help, not just put on a public video saying "sorry about your loss" and then that's it.
What a douche.
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QUOTE="PJB1994, post: 4761747: Just found this on https://www.managedfuturesinvesting.com/can-i-go-short-in-my-ira-account/ Doesn't look very good ....
Selling Naked Options
You can trade options in an equity IRA account, but you are not allowed to sell naked calls or puts. When trading futures, you can sell naked calls or puts on futures in your IRA account. Furthermore, when investing in CTAs via managed futures, some CTAs may employ strategies that call for naked option selling. While these naked selling strategies are risky, they are permitted in your IRA account. /QUOTE
Apparently selling options on futures is allowed, naked selling that is. It's naked selling of options on stocks that's not allowed. Go figure.
Selling Naked Options
You can trade options in an equity IRA account, but you are not allowed to sell naked calls or puts. When trading futures, you can sell naked calls or puts on futures in your IRA account. Furthermore, when investing in CTAs via managed futures, some CTAs may employ strategies that call for naked option selling. While these naked selling strategies are risky, they are permitted in your IRA account. /QUOTE
Apparently selling options on futures is allowed, naked selling that is. It's naked selling of options on stocks that's not allowed. Go figure.
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That source is incorrect, like many on the internet when it comes to specifics and technical information. They’re confusing what their broker allows with what is allowed generally, such as at a self directed broker like the ones IRA investors in OptionsSellers.com used.
He also wrote plenty of garbage on SeekingAlpha
https://seekingalpha.com/author/james-cordier#regular_articles
how can you lose??
https://seekingalpha.com/author/james-cordier#regular_articles
how can you lose??
Three class-action attornies so far. The sharks are circling.
OptionSellers.com Investment Loss Recovery
FRIDAY, NOVEMBER 16, 2018
The attorneys at ChapmanAlbin have been contacted by OptionSellers.com investors and are preparing to file claims against OptionSellers.com and/or INTL FC Stone. If you lost money due to OptionSellers.com’s reckless options trading strategy, contact us today at 1-877-410-8172 or email attorney Jason Albin at jalbin@chapmanlegal.com for a free consultation.
CATASTROPHIC LOSS EVENT
On November 15, 2018, OptionSellers.com notified its investors in an email entitled “Catastrophic Loss Event” that it not only lost all their money, but that they would also owe money to Intl FC Stone for margin calls. According to OptionSellers.com, they lost a substantial portion of their investors’ assets due to a short call position in natural gas that, according to Optionsellers.com “was so fast and intense that it overwhelmed all risk measures in place.” It then informed investors that they have a debit balance in their accounts which they need to bring back to zero by paying INTL FC Stone the difference. So, in addition to trying to process the news all their money is gone, they also have INTL FC Stone breathing down their necks demanding they pay the money they owe for its margin calls.
CLAIMS AGAINST OPTIONSELLERS.COM AND ITS PRINCIPALS
Tampa-based OptionsSellers.com touts itself as premier and highly experienced commodities options trading firm. The firm’s president and head trader, James Cordier, explained in a recent interview: “Our goal is to take an aggressive vehicle and manage it conservatively.” Unfortunately, it did not trade options conservatively. It traded “naked” rather than “covered” options, leaving investors subject to unlimited exposure. This unlimited exposure is what caused to lose all their money and more in the last few days. Thus, OptionSellers.com and its principals negligently engaged in a risky trading strategy that was unsuitable for its clients and breached its fiduciary duties to them by putting its interests ahead of its clients.
The Optionsellers.com team includes Rosemary Veasey, Matthew Donovan, James Cordier, Michael Gross, and Alicia Zedella. Optionsellers.com recently went “dark,” shutting down its website and Facebook and Linkedin pages, leaving us concerned about its ability to pay the millions of dollars of claims that are about to be filed against the small commodities trading firm.
CLAIMS AGAINST INTL FC STONE
We believe there are also potential claims against INTL FC Stone, the firm that executed the trades for OptionSellers.com. INTL FC Stone is a large publicly-traded company that was ranked 103 in the 2018 Fortune 500 list of largest United States Corporations by total revenue. We believe INTL FC Stone failed to conduct proper due diligence of OptionSellers.com’s traders including James Cordier and Michael Gross who had multiple complaints filed against them in the past. We also believe FC Stone failed to know its customers, allowing Optionsellers.com to trade options in IRA accounts on margin, a strategy generally not permitted in IRA accounts.
CALL TODAY FOR A FREE CONSULTATION TO EXPLAIN YOUR RIGHTS AGAINST INTL FC STONE AND OPTIONSELLERS.COM
Since 1998, the attorneys at ChapmanAlbin have helped hundreds of investors recover millions of dollars lost due to investment fraud and negligence. Call us today at 1-877-410-8172 or email attorney Jason Albin at jalbin@chapmanlegal.com to discuss your options against OptionSellers.com and INTL FC Stone.
OptionSellers.com Investment Loss Recovery
FRIDAY, NOVEMBER 16, 2018
The attorneys at ChapmanAlbin have been contacted by OptionSellers.com investors and are preparing to file claims against OptionSellers.com and/or INTL FC Stone. If you lost money due to OptionSellers.com’s reckless options trading strategy, contact us today at 1-877-410-8172 or email attorney Jason Albin at jalbin@chapmanlegal.com for a free consultation.
CATASTROPHIC LOSS EVENT
On November 15, 2018, OptionSellers.com notified its investors in an email entitled “Catastrophic Loss Event” that it not only lost all their money, but that they would also owe money to Intl FC Stone for margin calls. According to OptionSellers.com, they lost a substantial portion of their investors’ assets due to a short call position in natural gas that, according to Optionsellers.com “was so fast and intense that it overwhelmed all risk measures in place.” It then informed investors that they have a debit balance in their accounts which they need to bring back to zero by paying INTL FC Stone the difference. So, in addition to trying to process the news all their money is gone, they also have INTL FC Stone breathing down their necks demanding they pay the money they owe for its margin calls.
CLAIMS AGAINST OPTIONSELLERS.COM AND ITS PRINCIPALS
Tampa-based OptionsSellers.com touts itself as premier and highly experienced commodities options trading firm. The firm’s president and head trader, James Cordier, explained in a recent interview: “Our goal is to take an aggressive vehicle and manage it conservatively.” Unfortunately, it did not trade options conservatively. It traded “naked” rather than “covered” options, leaving investors subject to unlimited exposure. This unlimited exposure is what caused to lose all their money and more in the last few days. Thus, OptionSellers.com and its principals negligently engaged in a risky trading strategy that was unsuitable for its clients and breached its fiduciary duties to them by putting its interests ahead of its clients.
The Optionsellers.com team includes Rosemary Veasey, Matthew Donovan, James Cordier, Michael Gross, and Alicia Zedella. Optionsellers.com recently went “dark,” shutting down its website and Facebook and Linkedin pages, leaving us concerned about its ability to pay the millions of dollars of claims that are about to be filed against the small commodities trading firm.
CLAIMS AGAINST INTL FC STONE
We believe there are also potential claims against INTL FC Stone, the firm that executed the trades for OptionSellers.com. INTL FC Stone is a large publicly-traded company that was ranked 103 in the 2018 Fortune 500 list of largest United States Corporations by total revenue. We believe INTL FC Stone failed to conduct proper due diligence of OptionSellers.com’s traders including James Cordier and Michael Gross who had multiple complaints filed against them in the past. We also believe FC Stone failed to know its customers, allowing Optionsellers.com to trade options in IRA accounts on margin, a strategy generally not permitted in IRA accounts.
CALL TODAY FOR A FREE CONSULTATION TO EXPLAIN YOUR RIGHTS AGAINST INTL FC STONE AND OPTIONSELLERS.COM
Since 1998, the attorneys at ChapmanAlbin have helped hundreds of investors recover millions of dollars lost due to investment fraud and negligence. Call us today at 1-877-410-8172 or email attorney Jason Albin at jalbin@chapmanlegal.com to discuss your options against OptionSellers.com and INTL FC Stone.
Well according to this Wikipedia article about IRA accounts, there is no absolution prohibition on naked short selling of options, even on stocks. The prohibition is really on borrowing against IRA and the reason is not really because it's forbidden; it's really because it would trigger UBTI taxes. And everything is dependant on what the IRA custodians allow. https://en.wikipedia.org/wiki/Individual_retirement_account
Oh he wrote garbage everywhere, SeekingAlpha, Trading Deck on MarketWatch, Wall Street Journal, Futures Magazine. He even published several editions of his book "Complete Guide on Option Selling". He was even featured on CNBC several times. There are even quite a few Youtube videos of him giving his analysis, forecasts and insights on various commodities. It's so funny they are listed right below his apology videos. It's like just several months ago, he was confidently predicting how various commodities are doing, where their price levels are and how you should trade them and then right after, he is shown in tears apologizing to all his clients he's lost all of their money trading. Ironically, in his most recent article he even talked about about how tough the natural gas market is and he even recommended people to stay away from it. LOL
Makes you think how much does those "experts' insights" worth.
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