The losses from the failure of the fund could exceed US$150 million, according to Jason T. Albin, a lawyer at ChapmanAlbin LLC, who said he’s been contacted by at least 60 clients of OptionSellers. "Everybody’s account was wiped out," he said in a telephone interview.
Moreover, he said, FCStone borrowed on margin against the accounts to cover money-losing positions. In the end, the clients didn’t just lose all their all their money, they also now owe FCStone for the loans, he said.
“Natural gas is a tough market to call in the short term," he said. "Weather forecasts can bring public speculators to the market in mass, causing wild daily fluctuations, especially during the winter months. This makes pure gas futures trades risky.”
"I never invest in anything I do not understand " - Warren Buffet