It was a user error - failing to get out of option positions close to expiry or to mark them as not to be exercised. You must always do one or the other unless your account is large enough to deal with the higher margin requirements that will apply if they end up being automatically exercised due to being slightly in the money at expiration. Most will require a personal guarantee so that can come after you in this case. Also they can always sue you for negligence personally.
Because you did business through the LLC, your personal assets would be protected as long as such assets were also not in the name of the LLC (i.e. in your name not in the name of hte LLC).
Not if the broker requires a personal guarantee (which they probably will) and not for negligence. They will sue both the LLC and you personally for negligence regardless of whose name the account was in.
Thanks for your comment. Many people have turned $20,000 into millions. I don't think it is unreasonable to have that hope and goal given that I do not plan on doing it overnight....I know it may take a few years to accomplish such a thing; I am hoping to break even in the first year or maybe even in the second year too. But this is definitely not a fake post; I don't know why you would assume that. What purpose would a person make something like this up for? I'm not claiming to be a market genius or anything but I am willing to work hard to understand the bond market and preserve the capital i have invested in that market. Capital preservation will always be the key goal. This will actually be my fourth forray into the financial markets; I've lost before because I always looked for homeruns; this time around I'm going to bat singles and do so consistently. God willing, I will achieve my goal and much much more...Thanks for your input....
Some links to previous inquiries... http://www.elitetrader.com/vb/showthread.php?s=&threadid=172701&highlight=llc http://www.elitetrader.com/vb/showthread.php?s=&threadid=157238&highlight=llc Also speak with these folks http://tradertax.com/ Enjoy RN
Well that's news to me. The whole purpose of an LLC structure is to protect your personal assets so you'd be a fool to give a personal guarantee... I don't think negligence is enough of a reason for a judge to allow penetration of the LLC wall of protection for seizure of your personal assets....I'm not a lawyer though
Here's a thought: download an application and read through it and tell us whether or not in the fine print there is a clause for "personal guarantee" or the similar for trading through an LLC. Everyone I have read so far has it.
So you are saying that the managers of hedge funds would sign off on such a personal guarantee and make their personal assets fair game for lawsuits from disgruntled customers? This doesn't sound right to me but if you know this to be the case do let me know. You are saying that brokers require LLC's to sign the personal guarantee in order to trade with them? Is that form optional or required to be signed? I'm not saying you don't know what you are talking about but this just doesn't sound right because then every manager on the street could be personally sued and I know such managers do everything they can legally to assure that their personal assets are untouchable in lawsuits against the LLC.