Securities and Financial Services Litigation & Consulting

Options and Option Strategies

Bates staff and experts have provided both consulting and testimony services in matters involving options trading within a client account. Bates experts have opined on the appropriateness of the options trading, as well as the role the options position play within the client’s overall investment strategy and portfolio of holdings. Bates has performed quantitative analyses examining the likelihood that an option position bought or sold by a client will end in a gain or loss, providing a single figure capturing the probability weighted expected value from the purchase or sale of the option position.

Bates experts have also provided in-depth knowledge concerning commonly employed options trading strategies such as covered calls, zero cost collars, and spreads (vertical or calendar). The role of these strategies within an overall investment objective, as well as the relative risks created for the client, are also analyzed. Bates consultants and experts have also provided analysis and testimony in support of matters involving premium generation strategies employed to generate additional yield on a client’s portfolio, such as those involving iron condors, or other means by which the held portfolio serves as collateral for options-related, income-focused trading.