- Report: #1053998
Report - Rebuttal - Arbitrate
Complaint Review: TD Ameritrade Inc./Red Options
TD Ameritrade Inc./Red Options4211 S. 102nd St., Omaha, NE 68127 Omaha, Nebraska USA
TD Ameritrade Inc./ Red Options Misled me to believe investing in Options Calls/Puts and using "Red Options team" was right for me Omaha Nebraska
*Author of original report: Red Options legally ROBBED YOU TOO ?!
*Consumer Comment: 10K to $600 Fast
*Author of original report: Case / Situation Update
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On November 20, 2012 I decided to open a second account, ...........709, at TD Ameritrade with enough cash so that the “Red Options” Team, 877-733-6786, can use their three different investment strategies which were: “Iron Condor” with me allocating $5000, “Vertical Calendar” with me allocating $2000 and “Index Calendar” with me allocating $2000. TD Ameritrade referred me to the Red Options team. Red Options is owned by TD Ameritrade Inc.. I was told by a TD Ameritrade representative that the Red Options team watch and manage the investments every day and that it is an investing system with a different approach to investing using Option calls and puts. I had never heard of this type of investing and was very curious and wondering if I should have the Red Options team invest my money into calls and puts for me in their managed account program. I was willing and did set the risk tolerance level to about six or seven referring to a scale from 1 to 10 and 10 being the most extremely risky. I had no intentions of being invested at an extremely high risk level. Instead I chose a little bit higher than the midrange of the risk levels I had to choose from.
But, before I invest any of my money into a investment team or entity I do everything I can and ask all the questions I can imagine to cover as much aspects and details to make sure I do the right thing with my money and don't end up in a situation where I lose thousands of dollars which has happened in this situation by trusting and being led to believe that that Red Options team AND investing into options is something for me to do or not do with my money. So, before I allowed Red Options to begin investing my money I spoke with Sean (or Shawn, not sure exactly how his name is spelled) for about an hour and a half on the phone trying to figure if investing into Options calls or puts is something for me and something I'm willing to do. Sean is Red Option’s representative who was trying to help me with my questions and concerns to help me understand about investing into options, puts, or calls. I told Sean I don't know anything about that type of investing. Sean asked me if I would like to pick and choose my own calls, puts and learn how to invest into those myself. I said I don't know anything about that type of investment and said I would rather let your team do the investing.
During the 1.5 hour conversation with Sean, before I allowed them to invest my money, I was only told that this type of investing was “risky” and never told or led to understand how EXTREMELY risky with the possibility of losing thousands of dollars in account value before possibly going back up again in value it is while investing into options. I was never told by Sean that my invested cash value could drop down as much as six or even $12,000 before going back up in value. I was only told about this by Chris, whom is the manager act Red Options team, after I saw my account value had dropped $5000 and called to complain in shock about what I was not made aware of and what could happen to the account value. Chris at that time told me my account value could even drop as much as $12,000 in total before those calls or puts would go back into cash at the end of their investment time frame.
If I had been told by Sean what I should have been told I would never have taken that chance on investing into options. Well, guess what happened within the first month and a half? The account value dropped more than $5000! And I was extremely shocked and angry that the possibility of this happening was not explained to me. If Sean had explained this to me correctly I would never allow the ”Red Option” team to invest one dollar of my money!
Sean also did not explain to me how when after purchasing calls or puts and if and when the cash value of those drops a noticeable amount the value of those calls or puts usually never go back to the original value of the initial cash investment or purchase price. In other words when those cash values drop they usually never come back up to where they started at. Again, if Sean was able or willing to let me know about this I, again, would never have invested my money into calls/puts investing!
During that hour and a half conversation with Sean I asked him how many customers did Red Options have which would help me determine how popular and liked their investment strategies have been to other customers. And the amount of customers would help indicate to me how good the Red Options team really is. Sean told me they only had a few hundred customers. I asked Sean why do you only have a few hundred customers? Sean told me the reason was because they do not advertise and get their new customers by word-of-mouth, customers referring other potential customers to them. Sean also told me it's also because they are “new at TD Ameritrade” which led me to believe and understand that it is a new investment team and they're just getting started. But, I later found out that the Red Options team had been investing for their customers for over 10 years! Again, if I had been explained properly about these details I would never have invested a single dollar into that investment team because they only had a few hundred customers after 10 years of investing! I am not an idiot and I would never have allowed my money to be invested into the Red Option investment team nor into any calls or puts, ever! I was completely misled and not told all the information that I should've been told to help me evaluate if Red Options was a proper place to invest my money which it apparently is absolutely not!! And those recorded conversations I had with Sean and Chris will help everyone understand how I was misled and/or not explained properly what I should have been told before I made my decision where to invest or not to invest my money regarding Option calls, puts and TD Ameritrade's Red Option investment team.
Also, I really don't know who's responsible for this which I am going to mention now. I never was told or led to understand how expensive it is to order or purchase these calls and puts. After I noticed how much my account value had dropped after only 45 days I noticed that TD Ameritrade charged me over $900 for the calls or put purchases or trade orders for 30 different calls or puts investments! If I was made aware that it would cost me about $1000 just to purchase these calls or puts I AGAIN would have NEVER invested my money that way.
Who, in a normal state of mind, would ever: invest into a investment plan which would cost about $1000 in trade purchases every two or three months; allow their investment cash value to go down significantly and then not have the account return to the beginning investment amount during those calls adjustment value changes; would ever trust in a investment team or group which only had a few hundred customers in the last 10 years of doing investments, or allow their money to be invested into Options. I NOW UNDERSTAND IT IS TOO RISKY FOR ME TO INVEST MY MONEY IN OPTIONS AT ANY SET RISK FACTOR LEVEL AND IF I WAS EXPLAINED PROPERLY ALL I NEEDED TO KNOW BY SEAN BEFORE INVESTING MY MONEY I WOULD NEVER HAVE INVESTED A SINGLE DOLLAR INTO ANY CALLS OR PUTS ACTIONS.
This report was posted on Ripoff Report on 05/26/2013 12:15 PM and is a permanent record located here: http://www.ripoffreport.com/r/TD-Ameritrade-IncRed-Options/Omaha-Nebraska-68127/TD-Ameritrade-Inc-Red-Options-Misled-me-to-believe-investing-in-Options-CallsPuts-and-1053998. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.
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