Karen the "Supertrader"

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drmark27

"Karen the Supertrader" has been featured on Tasty Trade twice (both sessions are available on YouTube). She turned $100K of her own money into $800K or so and then started raising money from others and now trades two or three funds that have amassed $105M in trading profits all from selling naked strangles.

I think the whole story is a fraud. Any thoughts?
 
Quote from drmark27:

"Karen the Supertrader" has been featured on Tasty Trade twice (both sessions are available on YouTube). She turned $100K of her own money into $800K or so and then started raising money from others and now trades two or three funds that have amassed $105M in trading profits all from selling naked strangles.

I think the whole story is a fraud. Any thoughts?
More...

Maybe not.

The best time to sell naked puts is when the market is in a strong up trend... such as since the Fed's Money Pump market, 2009-current.

However... selling naked puts on leverage has blown out famous/infamous money manager Victor Niederhoffer.... AT LEAST TWICE!

There is NO strategy which is "safe" or "assured of success". To succeed you must (1) make the right play at the right time, and (2) cash out and stop trading before the market gets you.... no easy task on either count.

"You got to know when to hold 'em...
Known when to fold 'em
Know when to walk away
Know when to run
You never count your money when you're sitting at the table
There'll be time enough for counting
When the dealin's done..."

IOW... You haven't really won until you quit with the money in your pocket.

The final word on "Supertrader Karen" hasn't been written yet. (Corrolary... "Best not to confuse brains with a bull market".)
 
Quote from Scataphagos:

Maybe not.

The best time to sell naked puts is when the market is in a strong up trend... such as since the Fed's Money Pump market, 2009-current.

However... selling naked puts on leverage has blown out famous Victor Niederhoffer.... AT LEAST TWICE!

There is NO strategy which is "safe" or "assured of success". To succeed you must (1) make the right play at the right time, and (2) cash out and stop trading before the market gets you.... no easy task on either count.
More...

other side of the trade, the calls, will blow u out.
 
Quote from drmark27:

"Karen the Supertrader" has been featured on Tasty Trade twice (both sessions are available on YouTube).
More...

For the lazy:

http://www.youtube.com/watch?v=cXy9HoWX0es

OK, since most people didn't watch the video, the title of this thread AND the Youttube video are both missleading. Here is what happened:

2002 Opens account with 10K trades part time.

2007 Light bulb goes on and decides to go fulltime. She opens account with 100K. There is no indication of returns between 2002 and 2007!!!

2008 She makes 50%. When at 150K people gave her more money, so she ends up with 750-800K or so.

She keeps rising money and trade options, and end up with 80 million and 41 million of it is profit. There is no indication or mention of returns except once....So it is entirely possible she never had a bigger than 50-200% return...

Right now she is managing 160 mill and made 56 mill in a not clearly classified time period.
 
Here is the 2nd video, they discuss absolute returns in the first 4 mins:

http://www.youtube.com/watch?v=BquDGE9KxZQ

Summary: She has 2 different funds, 190 mill, and 105 mill of it is profit. I think the period is 3+years...

Fund A: From 42 mill to 95 mill
Fund B: From 1.3 mill to 27 mill then to 95 mill (included more fundings)

So contrary to indications, she never made 1000% returns, a big chunk of the money came from investors. Quote:

"At this point people throwing money at you right?"
"Yes."

---------------------

At 13 mins they say she is up 30% this year on 95 million.If I am getting the strategy right, she is selling both puts and calls far out, like 12% away from the current price.

So basicly she is an insurance saleswoman.... Works until the next hurrican....

The video should be called: How I make 3% a month by selling options...

Fav quote: "I never use a stop loss. I hate stop losses."
 
This is the U.S. version of the Asian lady who claimed to have done the same thing several years ago--- get some lady who looks like a grandma, how can you not believe? I am surprised Sosnoff is promoting such a thing. While its certainly possibly true, its an extreme aberration of what can be expected by most in the market.



surf
 
Quote from zdreg:

+1
it is a guaranteed fraud. now prove it.
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I can't prove it's a fraud any more than I can prove it's true. I do think we could go through the videos and identify many suspicious details, however.
 
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