According to Bloomberg, “[a]n option gives someone the right, but not the obligation, to buy or sell a commodity or security within a predetermined time period. Options are said to be naked when they’re unhedged. If a market moves violently against a naked short options position, it raises the prospect of almost unlimited risk.“
People like to sell options rather than buying options because the odds of making money are better, said Jack Scoville, vice president at Price Futures Group in Chicago. However, as we saw with natural gas, that’s not always the case. You can get into a situation where the market is getting away from you pretty quickly.
While writing naked options may sound outrageously aggressive and even frightening to some, if it is done correctly, one should be able to sleep very well at night, Cordier and Gross wrote in their book. The downside, of course, is that the market potentially can exceed your risk parameter.
Peiffer Wolf Carr & Kane is currently investigating claims for anyone who has invested with OptionSellers.com. We are currently representing clients against James Cordier, Rosemary Veasey, Matthew Donovan, Michael Gross, Alicia Zedella, and INTL FC Stone. Contact Us Today by calling 504-523-2434 or by filling out an online Contact Form for a FREE Consultation. Concerns about possible broker misconduct and investment fraud are serious, and we are committed to fighting on behalf of investors.
Typically, we represent clients on contingency fee agreements. If we take your case under a contingency fee arrangement, you won’t owe our firm any legal fees unless we are able to recover money for you.
Our contingency fee agreements are usually based on a percentage of the amount we recover for our clients. The contingency fee amount is determined by the type of case, our estimate of how long it will take to resolve your case, and our estimate of the litigation costs we will advance in your case. Each engagement agreement includes the details of the fee arrangement. Questions about our fee agreements are welcomed and encouraged.
In most litigation matters, it is extremely difficult – practically impossible – to predict how long it will take to resolve a particular case. Every case is different, and we will do our best to provide you with an estimate based on your case and our experience with similar cases. Moreover, we will do our best to keep you updated and manage expectations along the way.
We handle cases that change lives. Contact us today for a FREE consultation.