If you are a client of Allegis Investment Advisors, you may want to check your account statement and see if your investment advisor is placing you into a risky put/call options strategy, and whether you have experienced any large, sudden losses.
Unlike more cautious investment advisors, Allegis apparently likes to place clients into a risky, proprietary options strategy, which may not pay off for investors.
While the put/call strategy Allegis uses is complex, the potential downside is terrifying: while the rest of the market drops by a few percentage points, Allegis investors could open their brokerage account statements to discover that they have lost 50-100% of the money invested in options in a single trade, in a single month.
These losses are also much scarier than stock losses, because there is no potential for a rebound. In a stock market rout, if you don’t sell, your shares can go back up. With the put/call options strategy Allegis is offering, if Allegis does not make a good options bet, the options expire worthless. Your investments have all of the potential appreciation value of rotten fruit.
While risky investments like this options strategy usually have the potential to be a home run, lately it looks like the Allegis investment strategy is only able to hit singles at best. While the options strategy Allegis utilizes is complex, here is what every Allegis investor needs to know:
There are better investment options for achieving these returns, so why does Allegis recommend this options strategy to its clients? One reason might be fees. Depending on your account, Allegis might charge more for the “privilege” of participating in this defective, supposedly exclusive options strategy.
Allegis Investment Advisors also goes by the following names:
Allegis Wealth Advisors
Adams Wealth Advisors
Bowen Group Advisors
If you’ve been damaged by bad options bets, the investment fraud attorneys at Investor Defense Law LLP may be able to help you recover your losses.
Investor Defense Law LLP is a law firm dedicated to helping investors in CA, GA, and WA recover losses caused by stockbrokers, financial advisors, and investment firms. To learn more, contact an investment fraud attorney at 800.487.4660.