Now, Peiffer Wolf is investigating AllianceBernstein’s Option Advantage strategy recommended to investors that has caused significant losses.
“An option income fund, also known as an option income closed-end fund (OI-CEF), is a type of pooled investment whose goal is to generate current income for its investors by earning premiums from selling options contracts.” (Investopedia)
According to AllianceBernstein’s Q2 2019 Results, Option Advantage’s launch brought $500 million in sales (Seeking Alpha). Allegedly, Option Advantage’s success is the result of its sales pitch, since AllianceBernstein claimed it was low risk. However, Option Income Funds can be “much riskier than simply investing in dividend-paying stocks. Because they utilize options contracts, there are several more risk factors.” (Investopedia)
Financial advisors (brokers) have a legal obligation and regulatory obligation to recommend only suitable investments that are appropriate for their clients. Their broker-dealer (employing brokerage firm) has a legal and regulatory obligation to supervise the financial advisor’s sales practices and dealings with clients. To the extent that any of these duties are breached, the customer may be entitled to a recovery of their investment losses.
If you believe you experienced losses as a result of the Option Advantage strategy, Contact Peiffer Wolf immediately for a FREE Consultation 585-310-5140.
If you believe you were a victim of investment fraud or broker misconduct, it is imperative to take action. Peiffer Wolf has represented thousands of victims, and we remain committed to fighting on behalf of investors.
Peiffer Wolf is currently investigating claims against AllianceBernstein and Sanford Bernstein for the development, implementation and recommendation to clients to invest in Option Advantage. Contact Us Peiffer Wolf today by filling out a Contact Form on our website or by calling 585-310-5140 to schedule a FREE Case Evaluation.
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