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Mauriello Law Firm Achieves $1.5 Million Settlement in Stock Option FINRA Arbitration

January 2022

The Mauriello Law Firm obtained a $1.5 Million settlement against a major Wall Street brokerage firm in a FINRA arbitration claim. The case involved the firm's recommendations of a covered call-writing options strategy, namely, selling "call" options on 100% of a single company stock that the client owned. The strategy was pitched to the client as a way to generate additional income with virtually no additional risk. Unfortunately, this was a misrepresentation. As the price of the stock consistently rose and exceeded the "strike price" of the options, the risk increased that the shares would be "called away," i.e., sold, to the holders of the options.

To avoid having the stock called away, the firm recommended "rolling the calls" - buying back the calls, and selling calls with later maturity dates but with strike prices that were still "in-the-money" (i.e., lower than the current share prices). This evolving strategy of "kicking the can down the road" could not be maintained and eventually caused huge losses for the client.

Investing in or trading in stock options can be complex and entail significant risks. If you have encountered losses due to a recommended stock options strategy or trading scheme, contact us to discuss whether you may have a legal claim for stock option losses.

Client Reviews
Tom, thank you for your all help. Among the three other attorneys I talked with, I chose you because you really listened, asked thoughtful questions and sought all information to understand my situation. That gave me confidence in you above all others. I am a believer in receiving feedback, so I just wanted to share my thoughts with you. If I come across anyone that is looking for counsel in this industry I will certainly refer them your way. Scott Yi, Securities Registered Representative
Thomas was very thorough, kind and truly cared about me and my case. He went above and beyond the call of duty. Every time I contacted him he me made me feel like a very important client. His skills, intelligence and demeanor lead to a victory in the courtroom! Susan De Diminicantanio
As a business development consultant, there have been times to which I am in need of counsel for the review and strategic advice a range of diversified employment and compensation packages. In this sense, Thomas Mauriello has been my trusted counsel, paying particular attention to the settle nuances the language and structure of contractual agreements, and rely heavily on his expert opinion as a plaintiff's lawyer! Emma Makinen, DOAP Kitchens, LLC
Our Family needed an attorney who was knowledgeable with FINRA and Tom proved to be very familiar with FINRA. We found him, trustworthy, thorough, honest and sympathetic during an emotionally stressful time with our Family. Annette Hellmich
I would recommend Mr. Mauriello highly - - to anyone - - - wish I had more friends in the area who need an attorney! He was extremely knowledgeable, timely, courteous, - AND - he won my case! Would call him again in an instant should the need arise. Nancy Brown