Karen the Supertrader - TastyTrade Hybrid Experiment

CBC · Jun 13, 2016

Pekelo said:
WTF is wrong with people here? Anyhow, for those who don't understand the topic, Karen's strategy, her tricky fund set up and her concealing the losses are actually 3 separate issues that can be confusing at first sight, but we are here to set you straight.

Or one could just read the complaint and read it again...

Ur right Pekelo they are completly unrelated.

Don't let the SEC investigation or her $100 mill in losses that was described as "Catastrophic" by the SEC affect anything to do with this thread.

We'll just focus on the warm and fuzzy returns that we landed this month

Martinghoul · Jun 13, 2016

Sweet Bobby said:
Not really. Tastytrade normally sells 1 standard deviation strangles one to one ratio of puts to calls. I am selling deltas similar to Karen's. Plus Karen normally sells two puts to one calls. So I thought I would try to sell ratio strangles where I vary the number of puts to calls. This is partially a Tastytrade strategy, partially a Karen strategy, and a little mix of my own strategy.

I think you should stop deluding yourself, really... It's all the same strategy, which has a variety of names, e.g. "picking pennies in front of a steamroller", "eating like a bird, sh1tting like an elephant", etc etc etc. How many extra puts or calls you be selling hardly matters, in the grand scheme of things.

CBC · Jun 13, 2016

Sweet Bobby said:
Why would he shut this down?

Well so other people don't fall into the same fate of Karen.

Kind of like lemmings, one lemming falls off a cliff and the rest of the lemmings following that lemming are destined to that fate as well. Unless there is intervention.

Pekelo · Jun 13, 2016

CBC said:
Ur right Pekelo they are completely unrelated.

I am glad we agree. By the way I didn't say completely, but they are related like me owning a Humvee, not having insurance on it and committing involuntary manslaughter with it.One might lead to the other, but they don't have to, that is the point.

And you wondering about thread closing is just naive...

CBC · Jun 13, 2016

Pekelo said:
And you wondering about thread closing is just naive...

Suppose the SEC are Naive to if they close down Karen's trading operations.

If they shut her down then this thread should follow suit and shut down as well.

Sweet Bobby · Jun 13, 2016

CBC said:
Suppose the SEC are Naive to if they close down Karen's trading operations.

If they shut her down then this thread should follow suit and shut down as well.

CBC, do yourself a favor and stop following this thread. Thus, it will be shut down in your own little world. Now get off my thread and go make your losing trade for the day!

zion · Jun 13, 2016

Sweet Bobby said:
I manage winners at 50% or take it off at a loss equal to two times the credit received.

So, if you sell for $1, will you take your loss at $2 or $3?

Thanks!

Sweet Bobby · Jun 13, 2016

zion said:
So, if you sell for $1, will you take your loss at $2 or $3?

Thanks!

Zion, I would buy the position back at $3 which would give me a total loss of $2 since I sold the options for $1.

Right after I sell a position, I enter two closing orders, one cancels the other. The first will close the position at a 50% profit. The other will close at a loss equal to two times the credit received.

Thanks for your question.

Bobby

syswizard · Jun 13, 2016

Well that makes sense.
How many positions do you have open at a time ?

Sweet Bobby · Jun 13, 2016

syswizard said:
Well that makes sense.
How many positions do you have open at a time ?

At various places within the thread there is a link to my spreadsheet. I update it daily. Let me know if you can't find it.