A trader who sells an option has a potential obligation which is met by having a position in the security that underlies the option. An uncovered or “naked” option refers to an option where the seller does not have a position in the underlying security.
If the buyer wants to exercise an uncovered option, the seller has to quickly acquire a position in the security. With an uncovered strategy, there is limited upside profit potential and a large amount of loss potential. These types of investments are only suitable for experienced investors who can afford considerable losses.
If your broker recommended an unsuitable uncovered option strategy that resulted in losses, you may have a case for recovery. Contact an experienced investor rights lawyer who can advise you on next steps.
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Call and speak to one of our attorneys* for a no-cost consultation to discuss your situation, answer your questions, and help you determine the next steps. This call usually takes about 15 minutes, but we are happy to talk to you as long as you would like!
Quick Review of Your Paperwork
If we think you might have a case, we will need to review a few basic documents. If we determine you have a case, then you will have the option to hire us as your attorneys to pursue it.
Signed Attorney/Client Agreement
If you decide to hire us to pursue your case, we will have you sign an attorney-client agreement so we can begin the process of trying to recover your losses.*
*In the vast majority of cases, our agreement is contingent – meaning you won’t owe us any money unless we recover money for you.