The emotional apology video from the founder of below is going viral. James Cordier of apologizes to his clients, who were totally wiped out in the process. It appears he lost big with short calls against oil, and saw an opportunity in natural gas. Things got much worse as natural gas rallied beyond what most expected, and buyers of the calls he sold cashed in, wiping his Hedge Fund out. Deep sympathy for his clients. More than likely Mr. Cordier was attempting to recover losses for his fund so his clients would finish 2018 on a high note. managed money for 290 clients and specialized in selling options to produce income. The firm lost all of its capital in last week’s volatile energy markets and, in some cases, left clients on the hook to settle trade balances, according to screenshots posted on Twitter and the Wall Street Journal.

I often get asked why I don’t trade options. The truth is, options are extremely risky, even with covered call strategies. My answer is always the same. If you can’t make money timing trades in stocks, options are not going to magically change that. There’s plenty of internet hucksters telling you they make millions at trading options and they want you to sign up to their options trading service and learn their safe and guaranteed way to make 150%, 200%, 400% and more trading options. It’s all a bunch of lies in an attempt to get you to sign up to their options trading service. If they were really making that much money, they wouldn’t be trying to sell you on their options trading service. Why would they want to deal with keeping up a business license, using accounting software to account for everything they do, dealing with customer issues and refunds, filing complicated business tax forms with the IRS. If they were really pulling in thousands of dollars a day, they would just keep quietly making millions of dollars at trading.

This is why we are on the sidelines and in the safety of cash folks. This is what I want to avoid happening to us. We are likely going to hear about more hedge funds going broke in this wicked market.

The sad video from James Cordier is below.

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