Options are one of the most common types of derivative investments available to individual investors. Derivative investments are contracts that derive their value from another, underlying investment (e.g., a stock, bond, or commodity). A stock option, for example, may give its holder the right (but not the obligation) to buy or sell shares of stock at a specified price. An option that gives the holder the right to buy something at a specified price at or before a future date is known as a “call.” An option that gives the holder the right to sell something at a specified price at or before a future date is known as a “put.” Many options are traded on the Chicago Board Options Exchange (“CBOE”). Sometimes options are used for hedging (offsetting potential losses in another investment) or employee compensation (employee stock options). When used for speculation, options and other derivatives can present very high levels of risk.
The investment and securities fraud attorneys at Moulton & Arney, LLP have extensive experience representing individual investors in securities arbitration and litigation. Cindy Moulton and Lance Arney have successfully represented thousands of clients in securities and investment fraud cases, with combined claims of hundreds of millions of dollars.
If you have suffered investment loss in Options or Derivatives, you may be entitled to recover all or part of your investment. To find out more about your potential claims against your broker/financial advisor, investment firm, or securities firm, please contact an experienced investment fraud attorney.