He Blew Upward His Fund. Directly He’S A Laughingstock.

From Institutional Investor:

An emotional apology video from the founder of OptionSeller.com is going viral.

Investors too traders idea the video was parody, at first.

“Real talk: betwixt the domain name, headline, too the fact that he released via YouTube, I idea this was a joke,” tweeted Christie Hamilton — a portfolio director for Children’s Health inward Dallas, Texas — slow Friday.

In the video, the caput of OptionSellers.com — a commodity-trading advisor — sits at a boardroom tabular array inward a accommodate too tie, wearing cufflinks too a Rolex-resembling watch.

“Needless to say, the events of this by calendar week convey been incredibly devastating for our clients,” work solid founder James Cordier told the photographic tv camera inward his ten-minute apology video, posted Nov 16. “To my customer inward Marseille, my married adult woman too I were sure enough looking frontward to joining y'all inward the French Riviera. It sounded too thence beautiful.”

OptionSellers.com managed coin for 290 individuals, the video said, too specialized inward its namesake technique of selling options to make income. The work solid lost all of its working capital alphabetic lineament inward final week’s volatile unloosen energy markets and, inward to a greater extent than or less cases, left clients on the claw to settle merchandise balances, according to screenshots posted on Twitter too the Wall Street Journal.

“I am too thence lamentable for non managing our shipping too keeping her afloat,” Cordier said, fighting dorsum tears. His work solid could non survive reached for comment.

But his evident hurting garnered lilliputian sympathy inward the industry. H5N1 disclose of fiscal players on Twitter suggested that OptionSellers.com employed an peculiarly risky options strategy without proper hedges, making a collapse inevitable.

One macro hedge fund founder faulted both Cordier too his investors for the outcome. “The nature of the strategy is that y'all brand a lilliputian fleck of coin until y'all blow up,” the director said slow Midweek on the status of anonymity. “The probability of losing it all is fairly significant. With derivative contracts — if y'all don’t empathize them — y'all actually bespeak to give coin to someone y'all trust, too to distich of them. Have to a greater extent than or less checks too balances.”...MORE