Did you lose money in the UBS YES Strategy at the recommendation of your financial advisor?
Have you suffered losses investing in UBS YES Strategy (Yield Enhancement Strategy)? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Dispute Resolution Claim against the brokerage firm that sold you the investment.
According to the Wall Street Journal on August 23, 2019, UBS Financial Services is facing more than two dozen customer complaints related to the UBS Yes Strategy, a complex investment strategy involving option contracts and leverage.
The strategy, called Yield Enhancement Strategy, or “YES,” has reportedly already generated at least $60 million in losses for clients and dozens of customer complaints.
UBS brokers reportedly marketed the Yield Enhancement Strategy, or YES, to wealthy clients. During times of low market volatility the strategy generated positive returns, but at the end of the year when market volatility increased, huge losses resulted. Because the program used borrowed money, investors had to either add additional money when trades went down or sell their positions at a loss, according to the Wall Street Journal.
According to UBS’ marketing materials, the YES Strategy intended to “limit exposure” to extreme market moves, but according to WSJ, the strategy had losses of more than13% at one point last year.
Here is how it worked, according to the WSJ: the UBS YES strategy typically involved putting on four different options trades relating to an underlying stock index, such as the S&P 500, at different strike prices but with the same expiration date.
The strike price can be the point at which the owner of a “call” option can buy or the owner of a “put” option can sell the underlying security.
The sale of short-term, “out-of-the-money” puts and calls on an index such as when the underlying price of the index isn’t at or better than the option’s strike price, was coupled with the purchase of short-term below-market puts and above-market calls on the index to mitigate risk, according to UBS.
Investigating UBS YES Strategy Lawsuits
The White Law Group is investigating potential securities fraud lawsuits involving broker dealers who may have unsuitably recommended UBS YES Strategy to investors.
If you have suffered losses investing in UBS YES Strategy, 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 UBS.
For more information on The White Law Group, and its representation of investors, please visit www.WhiteSecuritiesLaw.com.
Tags: FINRA arbitration, securities fraud attorney, UBS YES class action lawsuit, UBS YES complaints, UBS YES investigation, UBS YES investment losses, UBS YES lawsuit, UBS Yield Enhancement Strategy complaints, UBS Yield Enhancement Strategy investigation, UBS Yield Enhancement Strategy lawsuit, UBS Yield Enhancement Strategy losses Last modified: October 17, 2019