Customer Files $2M FINRA Lawsuit Alleging Unsuitable Options Trading Strategy

Law firm Shepherd Smith Edwards and Kantas is investigating investor loss claims against Morgan Stanley following a $2 million FINRA lawsuit alleging financial advisor Daniel Lee Becraft unsuitably recommended a high-risk options trading strategy. Because complex options strategies carry significant leverage and downside risks, affected investors are being encouraged to explore legal recourse to hold the firm liable and recover their financial losses.

If you are an investor who lost money after Morgan Stanley financial advisor Daniel Lee Becraft, or another registered representative at the firm, applied a too-risky options trading strategy to your account, Shepherd Smith Edwards and Kantas (investorlawyers.com) wants to talk to you. We are currently investigating customer losses after one of Becraft’s former customers filed a claim seeking up to $2M in damages.

According to Daniel Becraft’s BrokerCheck CRD, he has worked 29 years in the industry.

What Is Options Trading And Why Is This Unsuitable For Many Investors?

• Employing an options trading strategy typically involves buying and selling options, which are financial instruments called derivatives.
• Trading options can offer leverage and flexibility, but there can be serious risks, including the possibility of losing the entire premium that you paid when you placed a call or purchased an option.
• Selling uncovered call options can lead to drastic losses if the stock price rises, obligating you to purchase and deliver shares at a significantly lower strike price.
• If a margin call is made and you fail to meet it, your broker will likely liquidate your positions to take care of the deficit.
• Leverage can enhance your gains, they can also increase your losses.
• Market volatility can negatively impact an option’s price.
• An options trading strategy is a high-risk approach that is generally unsuitable for retail investors, conservative investors, and inexperienced investors. In some instances, an options trading strategy can be too risky even for accredited and wealthy investors.
• This type of strategy is often misrepresented as a safe, income-generating approach. When this proves to be far from the case, an investor can be blindsided by devastating losses.

How Do I Know If My Brokerage Firm Is Liable For My Options Trading Strategy Losses?

• Even if the broker-dealer had no idea that their registered representative was unsuitably applying this strategy to your account, you still may be able to hold them liable.
• Unfortunately, there are brokerage firms that will encourage their financial advisors to market an options trading strategy to customers because of the money they can make.
• You want to speak with one of our seasoned options trading strategy lawyers so we can assess whether you have grounds for an investment advisory claim against your broker-dealer and/or their stockbroker.

Talk To Our Experienced Options Strategy Recovery Lawyers Today

Call our Options Trading Strategy Lawyers at (800) 259-9010 or contact us online to schedule your free case assessment.