Harvest Collateral Yield Enhancement Strategy (CYES) Securities Investigation

Concerned about investment losses in Merrill Lynch Harvest CYES?

Have you suffered losses investing in an options-based investment strategy, such as Harvest Collateral Yield Enhancement Strategy (CYES) sold by Merrill Lynch? If so, the securities attorneys at The White Law Group may be able to help you recover your losses through FINRA arbitration.

Options or derivatives are only suitable for the most sophisticated investors. The Harvest CYES is a complicated and high risk options strategy, managed by Harvest Volatility Management, LLC.

In August we told you about numerous lawsuits involving the UBS Yield Enhancement Strategy (UBS YES), and close to $60 million dollars in investor losses, according to an article in Financial News.

Similar to the YES (Yield Enhancement Strategy), the CYES investors are depending on a portfolio of “iron condor” investments, all of which have the potential of catastrophic losses for the investor.

Market Volatility due to Covid-19 

While YES-type investments were marketed as market-neutral strategy and a “safe” investment, they are big losers in highly volatile markets. The strategy includes a broker selling call or put options to enhance returns in relatively stable or flat markets. YES strategy investments are extremely complex and risky.

The market turbulence last month due to uncertainty from the threat of the world wide pandemic, Covid-19, could mean catastrophic losses for investors.

Potential Lawsuits involving Harvest CYES

The White Law Group is continuing to investigate potential securities fraud claims involving options-based investment strategies,  such as Harvest CYES sold by Merrill Lynch.

Broker dealers are required to perform adequate due diligence on any investment they recommend. They must ensure that all recommendations are suitable for the investor. Recommendations should be in line with the investor’s age, risk tolerance, net worth, and investment experience.

It is possible that some financial advisors may have recommended this type of investment because of the high commissions associated with their sale and creation.

If you have suffered losses investing in Collateral Yield Enhancement Strategy (CYES), please contact the securities attorneys at The White Law Group.  For a free consultation, please call the offices at 888-637-5510.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.

We represent investors in FINRA arbitration claims in all 50 states. Our attorneys have recovered millions of dollars from many brokerage firms in the past, including Merrill Lynch.

The Financial Industry Regulatory Authority (FINRA) operates the largest securities dispute resolution forum in the United States, and has extensive experience in providing a fair, efficient and effective venue to handle a securities-related dispute.

For more information on The White Law Group, and its representation of investors, please visit www.WhiteSecuritiesLaw.com.