The small guy, well, smaller guy, doesn’t always lose these cases. He had a portfolio margin account with lots of options. Sounds like he met the margin call during the Covid crash, but their margin dept didn’t notice and blew him out anyway. https://financialadvisoriq.com/c/40...ust_nearly_liquidating_options_trader_account On March 13, 2020, as the markets were sinking amid the onset of the Covid-19 pandemic, Fidelity liquidated some of Perelmuter’s options, resulting in losses of about $2.33 million, according to Bradley. When the margin call was made, Perelmuter pledged to provide a cash infusion of about $9 million to cover the margin, “but before they recognized it the margin department liquidated many of his positions,” Bradley told FA-IQ. The arbitrators also denied Perelmuter’s claims for punitive damages and reimbursement of legal fees.
Seems like pretty legit trader for the arbitration to give him prospected gains based on his long term track record. He had 9MM laying around to defend his options position. That's also pretty legit.