Here Today…Gone Tomorrow…James Cordier’s Big Mistake

Close to 300 investors in Cordier’s natural gas “naked call options” watched their money disappear in a matter of 24 hours. According to a Bloomberg article of November 20, 2018, James Cordier, the owner of OptionSellers, a firm specializing in writing commodities for high-net investors, sorely underestimated the volatility of the natural gas market, resulting in over $150M in losses to his clients. “Naked call options” are unhedged funds associated with high risk/low reward trades because these trades are on a security that was not owned by OptionSellers. Cordier believed that he could sell these options at higher premiums since gas prices had peaked and would thus go down. But on November 14, gas prices shot up 20%, draining many investors’ accounts completely. In addition, according to an article in the Tampa Bay Times of November 26, several of Cordier’s clients who had brokerage accounts with a NY brokerage firm had borrowed money from their accounts to try to “stem their option losses,” so they lost even more money. If you were a victim of this tragedy, contact Andre Perron at 941-741-2884 or through thefinanciallawyer.com.