I read the legal report about that thief slut. She lost money by being a dumb idiot and betting against volatility by Short Straddling. This strategy profits if the market doesn't move... and you get blown to pieces if it moves (up or down). She was actually losing money the whole time... but on one day, the S&P move was so sudden and vicious it alerted authorities watching her account.
On August 24th 2015, the S&P has this giant red candle (check the day chart). The S&P did a vicious 10% retrace, which means that her margin increased from $100m to $220m. She only had $200m of purchasing power. She theoretically lost over 100% of her purchasing power because this wick was so hard. But because she's a fund, there's no-one overseeing her account that Forces an automatic liquidation.
Earlier in her career, she did not get out of her position and begin hedging to take her losses. Instead she kept rolling over the losses indefinitely. Clients thought she was killing it, and they kept paying her fees. Until August 24th happened.
She's just another fraudster.
If she took her loss (like she was supposed to) then she'd have taken a 50%-75% loss pretty early on and no-one would have kept giving her money.
On August 24th 2015, the S&P has this giant red candle (check the day chart). The S&P did a vicious 10% retrace, which means that her margin increased from $100m to $220m. She only had $200m of purchasing power. She theoretically lost over 100% of her purchasing power because this wick was so hard. But because she's a fund, there's no-one overseeing her account that Forces an automatic liquidation.
Earlier in her career, she did not get out of her position and begin hedging to take her losses. Instead she kept rolling over the losses indefinitely. Clients thought she was killing it, and they kept paying her fees. Until August 24th happened.
She's just another fraudster.
If she took her loss (like she was supposed to) then she'd have taken a 50%-75% loss pretty early on and no-one would have kept giving her money.
