James Cordier, president of Florida based financial firm OptionSellers.com posted a tearful apology on YouTube addressing investors for losing their money on bad bets that he made on natural gas and oil prices. He blamed the recent downfall in prices of crude oil in international markets and stock markets for the losses. In a 10 minute video that posted on YouTube he expressed deep regret for his error of judgment that led to extensive losses for his firm and its investors. Besides his firm, several other daily traders have lost millions on the bourses last week due to volatility as natural gas enjoyed its biggest single day gain in eight years to only suffer its biggest fall in 15 years that too on a single day.
Mr Cordier’s firm is based Tampa, Florida which manages money for wealthy investors and specializes in stock options that give buyers the option to buy and sell stocks at predetermined prices that have to be completed within a single trading day. Mr Cordier has co-authored a book named The Complete Guide to Option Selling and was responsible for 290 clients when he made the video. In his teary apology he confessed that investors were like family to him and was apologetic about the “rogue wave” of downfall which capsized the firm.
According to Jason Albin, an Ohio based lawyer who is in contact with 80 investors of OptionSellers. com the firm’s losses could be more than $150 million. Mr. Jason felt that the firm should not have used their investors’ retirement money for options as these investments are highly risky. Jason Albin is planning to take legal action against INTL FCStone the brokerage firm that was responsible for clearing bets placed by Mr. Cordier’s firm OptionSellers.com. Though INTL FCStone has declined to comment on these investors’ claims, they said that it liquidated accounts that were managed by OptionSeller.com when the volatility occurred in gas and oil markets.