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To: Tommaso who wrote (169032)5/30/2002 11:18:40 AM
From: KeepItSimple  Read Replies (2) | Respond to of 436258
 
Not exactly, but around march of 2000 just as the bubble bursting was picking up steam, I was threatened with account liquidation by a major online brokerage. At the time I had a quite substatial put portfolio on dozens of tech trash issues. Their reasoning was that I had lost an obscene amount of money over the previous 4 months by making risky options bets, and that to "save me from myself" they were going to downgrade my account status to disallow all options activity- and as a result I would be forced to close all my existing positions.

This was coming from their internal compliance department. I told them to go to hell, and threatened to sue them into the ground if they liquidated even 1 contract. By the time I sold those contracts on my own a couple months later, I had made more money than in my entire trading career.

To this day I believe someone at the firm's trading desk had wrote the puts I owned, and was trying a last ditch effort to break my trades before they suffered nasty losses.

Scum.

>Anyone else know of such a situation?