I would have made the video wearing a barrel and suspenders under a bridge next to my tent. What an idiot did he actually think wearing a rolex in that video is a good idea?
Very easy. Each CTA trades of master account, at the end of the day he/she sends allocation break down to the broker based on each client account size. All trades of the same strike/expiration are usually lumped together with APS (average price). It is quite simple and CTA can trade this way across multiple brokers via something that is called give up agreement.
Holy shit this has to be criminal at this point, so they will be able to go after his personal assets.
What kind of returns were you expecting, in his interviews he mentioned 25-28% returns. Is that what he told you he could achieve?
Trades happen in master account and CTA can pick and choose within certain boundaries. For example, a client calls in the morning and tell CTA to liquidate all positions at market. Then later the same day market moves against CTA and he closes positions for the rest of clients (those clients will get aggregate). The client who called earlier will get more favorable price.
I keep having nightmares of Nov/Dec 2003. I started selling naked options in gold futures in 1999 & building my account from $20000 to about $300000 in 2003. Nov 2003 I got the bright idea of selling naked options in NG because to premium look great. I lost0 $400,000 in 6 hours .
I was driving a cross SFO BAY BRIDE when my FCM risk mgr called me omg that cold water look good for about 2 mins. I say I ignored all my trading rules . If I had wrote widespread credit spreads I would have a had limited loss. it was my first trading account
I can do buy-write, cash secured, go long call/put, spread, calendar fly... but not naked. Don't think they allow naked short future or short options on future.
Naked shorting is like fraud schemes: If the premiums looks too good to be true, chances are it is. Hope you recovered that $100K loss by now.