This is so painful
Optionsellers.com sells options. That's a great business almost all of the time except once in awhile when something moves really far, really fast. That's exactly what happened to natural gas lately, as it jumped 50% in a couple weeks.
It cost this firm -- which specializes in writing commodity options for high net-worth individuals -- somewhere around $150 million for 290 clients. Its accounts have been liquidated.
Its founder James Cordier decided to make a video for clients and it's a heartbreaking apology where he talks about different interactions with clients who have lost all their money with the firm. He's fighting back tears most of the time.
"Here locally the biggest hockey fan in the world. Jeff, you know who you are. All I wanted to do was sit with you and watch a game. The next time I'm at the arena, I know you'll be there and I'll pretend I was sitting next to you," he says. Surely knowing that his old clients will turn their backs on him after the millions in losses.
What happened?
There's talk that he was selling far out of the money options with 90 days to expiration and may have been short natural gas, long oil or both but he doesn't detail the trade.
"I'm so sorry I was unable to manage the rogue wave that hit us this week," he said. "I'm sorry this rogue wave capsized our boat."
Watch the video here:
