Fed. Sec. L. Rep. P 97,932 Philip Gutter, Cross-Appellee v. Merrill Lynch, Pierce, Fenner & Smith, Inc., Cross

BAILEY BROWN, Circuit Judge.

I

This case grows out of a series of margin transactions executed by appellee and cross-appellant, Merrill Lynch, Pierce, Fenner & Smith, Inc. (Merrill Lynch), on behalf of appellant and cross-appellee, Philip Gutter (Gutter), in September and October of 1974. Gutter made a number of . short sales and wrote a number of option contracts through his broker Merrill Lynch, all on margin. Although some of the short sales were successful, most of the transactions resulted in losses to Gutter. To finance his margin trading Gutter deposited $122,000 in corporate bonds in a…