If your broker engages in options trading, he is making risky investments that are not appropriate for most investors. The legal team at Halling & Cayo, S.C. can help you determine whether you are eligible to pursue an options trading claim.
We regularly see clients come in who have lost significant amounts of money, and we start looking into their account and we realize that their broker was trading them in what are called options. So options are a little bit different than stocks or bonds or something you just buy in your account and hold or see if they go up. They're really kind of gambling on the market. The broker is either buying a put or a call, and he's betting whether it goes up or down over a short term. You'll see sometimes confusing terms like strike prices, covered calls, that type of thing.
Really they're extraordinarily risky and only appropriate for a very small group of investors, and oftentimes what we find is that either the broker doesn't know what he's doing when he's trading options, or it's just wildly too risky for the investor.
If you've suffered significant losses in your account as a result of options trading, you may have a claim, and you should have somebody take a look at it and see if, in fact, you do have the ability to bring an arbitration to try to recover those funds.