CFTC joins SEC to sue CPO for fraud

LJM’s central trading strategy relied primarily on selling options on S&P 500 futures and collecting the premiums (also called a short volatility strategy). Selling options carries the risk of large, even catastrophic, losses. However, LJM downplayed those risks by falsely claiming that maximum daily worst-case losses was 20%-40%

Carl Ayers

May 28 2021

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