The cause of action related to Claimant's allegation that Respondent purchased multiple option positions in Zoom Video Communications Inc., and defaulted on his obligations under account agreements entered into between Claimant and Respondent by failing to pay the debit balance owed on his accounts and failing to meet margin and maintenance requirements.
SIDE BAR: If you're not familiar with Tastyworks, consider this content on Tastyworks' "About Us" webpagehttps://tastyworks.com/about-us/:For more about the firm's background, watch:We believe in do-it-yourself investing. We think controlling your own money can be more rewarding than relying on money managers or robo-advisors who put your portfolio on autopilot.That's why tastyworks gives you every edge possible with the technology, rates, and support that help you succeed more easily on your own. We're as serious about your money as you are, and we work for you who are brave enough to take your finances into your own hands.. . .We helped pioneer options trading technology for the retail traderThere was no brokerage or software to help us trade how we knew we could. So we built a firm with the services we needed and a platform with the features we wanted to do it our way. We even traveled the world to share our success and to show people of all types that they could trade like us and win at it. After being made an attractive offer to sell the brokerage firm, there was much contemplation about the decision. Ultimately, it was an offer we couldn't refuse. After all, we're traders..
How the hell did Tastyworks wind up on the short-end of a $2 million stick after a customer entered into a massive, whopping amount of options exposure on a high-flying stock like Zoom?Did someone at Tastyworks think that Thrower had the financial wherewithal to cover his Zoom positions in the event that things went into the crapper?What happened with the firm's margin maintenance requirements?