So I went with an advisor last September at Morgan Stanley. He re did my portfolio and then started talking to me about selling covered calls on my position of ETN. I explained to him that that options sound good as long as we have the possibility of closing out the option so to negat the risk of having the contracts exercised. He confirmed we could do that and said this was basically free money.
We made anywhere from 1800 to 2000 on each contract. All was well but a couple months even more back i kept telling him we need to close out and just take whatever little premium we can get. I've done this with other options in the account
But he never did it. I pay him a monthly fee to manage the account so I just figured of course he knows what he's doing more then i do. which is true. which is why i'm paying a professional.
well, he now has 5 open contracts that in theory could be called which would force me to sell all my entire ETN position and well below current market price.
Even after i told him not to open more contracts he went ahead and did right when i hung up with him lol
I don't know what to do now, i contacted his branch manager who appears to be on my side in all this thankfully.
Maybe it's just going to be an expensive lesson, and that's not to trust anyone just because they have the credentials.
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