Did You Invest In The Harvest Volatility Management Collateral Yield Enhancement Strategy (CYES)?

September 6, 2019 |

Our securities lawyers are investigating the Harvest Volatility Management Collateral Yield Enhancement Strategy (CYES) and the broker-dealers who sold it to investors, including Merrill Lynch. Investors may have legal options available to recover the losses they incurred.  Harvest Volatility Management is a derivative asset management firm whose website states that its strategies are available for investment at Merrill Lynch, UBS, Fidelity, Morgan Stanley, Jefferies, Pershing, and other leading broker dealers.Our securities and investment fraud lawyers are investigating the Harvest Volatility Management Collateral Yield Enhancement Strategy (CYES) and the broker-dealers who sold it to investors, including Merrill Lynch. Investors may have legal options available to recover the losses they incurred.

What Is The Harvest Volatility Management Collateral Yield Enhancement Strategy (CYES)?

Harvest Volatility Management is a derivative asset management firm whose website states that its strategies are available for investment at Merrill Lynch, UBS, Fidelity, Morgan Stanley, Jefferies, Pershing, and other leading broker dealers.

Harvest’s Collateral Yield Enhancement Strategy (CYES) involves trading options with a complex series of put and call spreads in a scheme called an “iron condor” because the shape of the profit and loss graph resembles a large bird such as a condor.

The Collateral Yield Enhancement Strategy (CYES) is one of the “overlay strategies” listed on Harvest Volatility Management’s website. The description of the strategy is:

  • “Non-directional exposure expressed by selling index call and put spreads”
  • “Defined maximum loss potential and conservative position risk”
  • “Targeting additional yield without increasing or impacting existing portfolio investments”

Words like “conservative” and “additional yield” could lead investors to believe that the strategy is safe and suitable for their investment needs, but options trading involves speculation and risk of significant loss. An options strategy such as the CYES may only be appropriate for investors seeking such risk.

Some clients who invested in UBS’s Yield Enhancement Strategy (YES), which also used an iron condor options trading scheme, were told the strategy was conservative, and then lost 20% or more. FINRA arbitration claims have been filed in an attempt to recover those losses. One claim alleges that UBS did not adequately disclose the risks involved in their strategy.

Recovering Harvest Volatility Management Collateral Yield Enhancement Strategy (CYES) Losses

If you have losses with the Harvest Collateral Yield Enhancement Strategy (CYES), contact us to discuss your options. You may be able to file a FINRA arbitration claim to recover your losses.

Our team of attorneys have been working together on cases for many years. Our leading attorneys have extensive experience prosecuting investment fraud disputes. Our background and experience includes working at the Securities and Eschange Commission (SEC), in house counsel for a brokerage firm, and on Wall Street as a defense attorney. Our past experience gives us the knowledge and resources necessary to help you maximize your recovery.

Contact our UBS YES attorneys today at 800-975-4375.