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What Is Options Trading?

Options trading can be a perilous, but lucrative investment opportunity. But the complexity of options trading means investors are also more likely to be taken advantage of by financial advisors and stockbrokers who are looking to generate commissions and protect their own financial interests.  

Thankfully, the Financial Industry Regulatory Authority (FINRA) allows wronged investors like you to recover their losses when their financial planners or brokerage firm engage in misconduct or fraud. Below, you can learn more about how options trading works, why it’s risky, and the process for recovering your losses in FINRA arbitration with the help of a reputable investment loss lawyer.

More About How Options Trading Works

Investors turn to options when they are interested in generating regular income, hedging risk, or to speculate. These contracts give the investor the right to buy or sell the underlying asset before a certain date for a certain price. But investors are also under no obligation to buy or sell either. 

Options trades do not represent a share in the ownership of a company, but can enhance an investor’s investment portfolio. Your stockbroker or financial advisor should have informed you of the risks associated with options trading

If they failed to do so, misrepresented the opportunity, or otherwise made a decision that caused you to suffer considerable losses, you may be able to hold them to account in arbitration proceedings. 

Recovering Investment Losses 

FINRA arbitration is the go-to option for investors who hope to be repaid for their losses as quickly as possible. You can only recover restitution if you win your case, but FINRA arbitration proceedings often can be resolved in as few as eighteen months.

Similar to court proceedings, FINRA arbitration is instead overseen by a panel of arbitrators as opposed to a judge. There are also no opportunities to appeal a FINRA arbitration decision, but this makes it easier for investors to get their money back sooner than if they had filed a lawsuit. 

Speak with an Investment Loss Attorney 

Options trading is risky, but with the right financial advisor, you shouldn’t have to worry about being taken advantage of. If your broker wronged you and you are interested in recovering your investment losses, get help from an experienced investment loss lawyer at Wolper Law Firm. 

Complete the quick contact form provided at the bottom of this page or give our office a call at 800.931.8452 so we can schedule your free, no-obligation complaint evaluation. 

Attorney Matthew Wolper

Attorney Matthew WolperMatt Wolper is a trial lawyer who focuses exclusively on securities litigation and arbitration. Mr. Wolper has handled hundreds of securities matters nationwide before the Financial Industry Regulatory Authority (FINRA), American Arbitration Association (“AAA”), JAMS, and in state and federal court. Mr. Wolper has handled and tried cases involving complex financial products and strategies ranging from traditional stocks and bonds to options, margin and other securities-based lending products, closed/open-end mutual funds, structured products, hedge funds, and penny stocks. [Attorney Bio]