Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial advisor Anthony Gallea (Gallea) has at least four disclosable event. The four events are customer complaints alleging that Gallea engaged in some form of investment related misconduct in the handling of the client’s accounts. Gallea is currently employed by Morgan Stanley. Gallea’s customer complaints alleges that Gallea recommended unsuitable investments in a complex options trading strategy among other allegations and complaints.
In May 2022 a customer complained that Gallea violated the securities laws by alleging that Gallea unsuitability with respect to option trading strategy implemented in the account from 2018 through 2022. The claim is currently pending.
In April 2022 a customer complained that Gallea violated the securities laws by alleging that Gallea unsuitability with respect to option trading strategy implemented in the account from 2019 through 2021. The claim is currently pending.
An option is a contract that allows an investor to buy or sell an underlying security at a predetermined price over a certain period of time. Buying an option that allows you to buy shares at a later time is called a “call option,” and buying an option that allows you to sell shares at a later time is called a “put option.” Options are considered derivative securities because their price is derived from the value of the securities or other underlying instruments. The value change in options as they approach expiration is what is called time decay – meaning their value decays over time as expiration nears. Accordingly, an options trading strategy involving many options trades needs to be managed closely. Due to the risks of trading options FINRA has special rules and requirements related to their trading and to qualify investors for options trading.