Very Profitable Position Force Liquidated After 999% House Maintenance Margin Met

To put it simply -- a further explanation is below and I have recordings of everything -- I sold options to open set to expire in about a year through Etrade within all their parameters. In fact, I had them write the margin requirements in paragraph form and screen printed the margin calculator to ensure I had a record of everything and held enough cash in my account to allow for the underlying to go more than 60% the other way. The position quickly went in my favor continuously so for over week. Then the broker increased the margin requirement by 780% using the excuse that it was highly concentrated, even though it was less concentrated than when the position was approved and established. I met the margin requirement. Several days later Etrade increased the margin requirement by another 100%. Then I met that. Thereafter and without notification the broker increased the margin requirements to what is probably the system limit -- 999% -- and began to liquidate the position seconds later.

Because I was waiting to hear back from the office of the CEO at that time, I called my contact there and she asked the derivatives team that was liquidating to stop. There was a limit order in place that was not cancelled and it caused market disruption so much so that I couldn't reasonably liquidate anything myself. Then I met the 999% house margin requirement and a manual requirement was instituted of $4,000,000 that apparently was to be continuously updated and doesn't matter anyway because Etrade was unwilling to continue to be the custodian of the securities for me. All the while I've had hundreds of thousands of dollars in profit and the position was therefore increasingly less concentrated. In fact, when I backtested the position with TD Ameritrade's margin requirements I can see that every single day I had my position open the margin requirement decreased.

Nevertheless I met the fifth increased Margin Call, the positions continued further in my favor. While I was on the phone with the only person at the SEC I could reach, Etrade closed my access to the account and closed it without letting me know why. I then was able to log back in and saw that most of the rest of my position that had already gone 40% in my favor was liquidated in a market buy to close even though it was an adjusted LEAP 1000% out of the money and previously was closed through limit orders for protection. Even so, I still made more than 20% in a couple weeks. Etrade misreported the time of the trade and is now letting me know that the only way they will respond to my questions is through the SEC's request and FINRA arbitration. The following day someone in the style of Etrade's derivatives desk looks like they opened a position similar to that which I had liquidated. Also, this was an exchange I had with the CEO of Etrade's representative:
Me, making a request pre-liquidation Thursday at 9:14 AM, "Rather than improperly and unreasonably liquidating the position the ability to transfer the position for which Etrade is no longer willing to be the custodian to my username xxxxx at TD Ameritrade." The last part was bolded.
Me, 11:59 AM, "Why didn't you let me transfer the position? I called and emailed to let you know and we discussed my doing so the day before."
CEO's Office, 1:23 PM, "In our conversion on 1/25, we advised we will need the name of the company in which you wish to transfer in order to verify that they will accept the positions. No company name was provided for us to verify prior to the market open on 1/26 as requested."
Me, 2:39 PM, "I did provide the name of the company and I called to let you know as well. That is timestamped before market open and because you didn't respond to my voice message I called Etrade's general counsel and let them know and she said she would ensure it was known, which I thought she did. Please re-check your email and be more careful to avoid further implications where you say something did or did not happen when the opposite is true. Please begin the partial transfer now per my direction yesterday?"
CEO's Office, 3:29 PM, "Please contact TD Ameritrade initiate the transfer. Outgoing transfers need to be initiated through the receiving firm. Once we receive the request from them, we will send the requested assets to them."

I then contacted TD Ameritrade where I've had an Apex account in good standing for more than five years and am the authorized individual for my parents' retirement accounts, also in good standing. While I was on the phone with the representative they let me know that the account was just changed to closing only, meaning I could not make a transfer even though I just passed the Portfolio Margin test this week and everything was going well. I want to keep this post completely objective but I think you can use your imagination regarding what may have occurred.

My parents were understandably not financially able to provide me with the resources which would have allowed for opportunities that could have led to significantly increased achievement at a young age and I became determined then to make those opportunities for myself and my future family. I found that securitization was the most likely way to get to where I wanted to be financially. So I began reading the Wall Street Journal in middle school, won my first trading competition in high school, studied it in college, went to one of the highest-rated firms to work at on Wall Street, and now just manage my personal account at the age of thirty not spending much time focused on it and usually make at least a million annually. I was setup to do just that when I went opened the position. I've never heard of anything like that with which Etrade did: raising the margin requirements on a very profitable position for the customer to unreasonably levels that were met and adding a $4,000,000 margin maintenance requirement while letting the customer know that no matter what the position would be liquidated.

Any thoughts, recommendations, advice, insight, suggestions, and citations you can recommend I use in an effort to win? Know a journalist that would be interested in the story? I recorded phone calls, have screen prints, and saved messages of the entire interaction. Also, anyone know an attorney with experience winning FINRA arbitration willing to take this on contingency for the lost profits? I currently have one NYTimes best-selling business writer and an attorney experienced in winning FINRA arbitration cases for customers that let me know they're consulting others while they review my case to determine potential next steps but I'd like to have backups due to the limited amount of time I have to file. I appreciate your time and consideration.

 

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