If you lost money investing with a yield enhancement strategy (YES) offered by UBS Financial Services, you may have a claim.
A yield enhancement strategy is a form of investing where a broker sells call or put options to enhance returns in relatively stable markets. Investments using a YES options strategy are often advertised as being safe. In reality, they are often high-risk because they rely on marketplace stability, which is impossible to gauge over the long term.
UBS Financial is alleged to have offered these volatile YES options strategies in a variety of forms and products, including in managed accounts, structured notes, and funds. In particular, UBS Financial is said to have utilized an investment strategy called the “iron condor.”
In an iron condor, the trader sells a call spread and a put spread with the same expiration day on the same underlying instrument. By simultaneously selling and buying calls and puts, an iron condor strategy can generate income as long as the price stays within the breakeven points created by the spreads.
Unfortunately, sudden price swings can push the price outside of the breakeven points, resulting in losses. A recent example of a stock market swing was in February 2018 when the DOW plunged 1,175 points, the worst decline in the exchange’s history.
Under FINRA Rules, brokerage firms are responsible for supervising their broker’s activity and may be liable for investment losses caused by their brokers. Sonn Law Group is interested in speaking with individuals who invested with UBS Financial and may have a claim.
Recent News & Investigations Involving UBS
- Top Broker Fired by UBS Financial Services for Violating Firm Policies (5/2/2019)
- Broker Investigation: David Fagenson (11/28/2018)
- Broker Alex Herrera Barred by FINRA, Accused of Stealing Funds (11/16/2018)
- UBS Sues Fired Broker David Fagenson for Not Paying FINRA Arbitration Award (10/23/2018)
- Broker Investigation: John Halsey Buck III (10/17/2018)