The Option Advantage Program created and pitched by Alliance Bernstein was purportedly designed to offer investors an extra returns on existing portfolios of Alliance Bernstein clients.
Option Advantage was pitched as both low-risk and low-volatility, even though it involved leverage and options, both of which are widely regarded as high risk. The phrase cash free was regularly used to describe this strategy, which downplayed the use and impact of leverage on this option trading strategy. Effectively, Alliance Bernstein was using their clients portfolio as collateral for loans and the borrowed money was then invested in bets on movements in the markets through the purchase and sale of options.
Vernon Litigation has already filed multiple FINRA arbitrations against Alliance Bernstein for improprieties in connection with the Options Advantage Program. Contact us at 239-319-4434 for more information.