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MIAMI, Nov. 01, 2019 (GLOBE NEWSWIRE) -- Nationally recognized securities law firm Dimond Kaplan & Rothstein, P.A. (“DKR”) (http://www.dkrpa.com) is investigating Merrill Lynch’s sales of the Harvest Collateral Yield Enhancement Strategy (“Harvest CYES” or “CYES”). Merrill Lynch recommended the Harvest CYES options overlay strategy to its brokerage firm customers as a low-risk way to generate a modest amount of additional income. But the CYES strategy actually was complex and risky and has caused significant investor losses. DKR believes that the nature and risks of the Harvest CYES strategy were misrepresented and that the options strategy was not implemented as marketed.
What Is Harvest CYES?
The CYES program involves buying and selling numerous puts and calls on the S&P 500 Index to generate income. Marketing materials tout the strategy as market neutral and designed to limit losses and contain risk, But CYES actually was risky and subject to directional market moves.
CYES investors reportedly had to commit a minimum of $5 million in collateral to the CYES option overlay strategy. While investors were exposed to substantial losses, Merrill Lynch charged sizeable fees and commissions, regardless of whether the strategy was profitable. Merrill Lynch also would pocket 10% of any investor profits derived from the strategy. In other words, Merrill Lynch created multiple revenue streams for itself, all while exposing investors to excessive losses.
Did Merrill Lynch Misrepresent the Risks of the Harvest CYES to You?
If you lost money in Harvest CYES after Merrill Lynch represented it to you as a low-risk, income strategy you can bring a FINRA arbitration claim in an effort to recover your losses. Merrill Lynch was prohibited from misrepresenting or omitting any material facts about CYES, including facts about the risks of the strategy.
DKR Represents Investors Who Lost Money in the Yield Enhancement Strategy
DKR’s lawyers have successfully handled numerous cases involving complex option strategies. In addition to representing Merrill Lynch customers who lost money in the Harvest CYES options strategy, DKR also represents investors who lost money in a similar options strategy recommended by UBS Financial Services, Inc. If you suffered losses in Harvest CYES or any other YES option strategy, we encourage you to contact us promptly for a free case evaluation.
From its offices in Miami, Los Angeles, West Palm Beach, New York, Los Angeles, and Naples Dimond Kaplan & Rothstein, P.A. represents investors throughout the United States, Mexico, and throughout Latin America in stockbroker misconduct and investment fraud cases.