Karen the "Supertrader"

Quote from optionbull:

Basically works in theory until it does not, at which time it may lose massive ?
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Correct.

Now she has 2 things going for her. One that she sells both sides (instead of just puts), second she does only half of the account or less first, so she has more gunpowder left in a bigger move....

On the other hand selling calls can backfire too, so it also increases risk. In January the market went up 7%, that is quite a big move, I am sure they had to keep adjusting like crazy...
 
Quote from Pekelo:

Correct.

Now she has 2 things going for her. One that she sells both sides (instead of just puts), second she does only half of the account or less first, so she has more gunpowder left in a bigger move....

On the other hand selling calls can backfire too, so it also increases risk. In January the market went up 7%, that is quite a big move, I am sure they had to keep adjusting like crazy...
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How do you adjust, deploy a portion of the remaining capital to sell more 5 % probability calls/puts again ?
 
Quote from Pekelo:

Correct.

Now she has 2 things going for her. One that she sells both sides (instead of just puts), second she does only half of the account or less first, so she has more gunpowder left in a bigger move....

On the other hand selling calls can backfire too, so it also increases risk. In January the market went up 7%, that is quite a big move, I am sure they had to keep adjusting like crazy...
More...

I have pretty extensive options experience. In order to make big returns selling vol she has to lever a lot. The only thing that gets "adjusted" when your strikes get blown hard in a move either calls or puts is your account size ..negatively impacted.

Her Strats has been proven to ultimately fail time and time again. You guys who defend it are so simply inexperienced its ridiculous. Sure she may run the scheme so her fee's accrue that she will not have to sell her art and silver like a famous local in my neck of the woods had to ...but surely the day will come when Mr fat tail taketh.
 
Quote from sellindexvol66:

I have pretty extensive options experience. In order to make big returns selling vol she has to lever a lot. The only thing that gets "adjusted" when your strikes get blown hard in a move either calls or puts is your account size ..negatively impacted.

Her Strats has been proven to ultimately fail time and time again. You guys who defend it are so simply inexperienced its ridiculous. Sure she may run the scheme so her fee's accrue that she will not have to sell her art and silver like a famous local in my neck of the woods had to ...but surely the day will come when Mr fat tail taketh.
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Isnt the "skew" to the downside or the premium is in the puts... lots of funds buy them to stay long the underlying.


Why not sell 2 calls to 1 puts maybe spread the calls verically,,,, OTM and deeper OTM, the risk to this overall strat is a meldown not up ... ? especially 50 or so days out ?
 
Quote from optionbull:

Isnt the "skew" to the downside or the premium is in the puts... lots of funds buy them to stay long the underlying.


Why not sell 2 calls to 1 puts maybe spread the calls verically,,,, OTM and deeper OTM, the risk will be not a meltup but down no ?
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Sure, back spreads, flies, calendar's, etc etc..that's what can make u a living...selling puts / calls levered will simply bust in due time..
 
Quote from sellindexvol66:

Sure, back spreads, flies, calendar's, etc etc..that's what can make u a living...selling puts / calls levered will simply bust in due time..
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in the event someone sells the puts and market goes to 0.00 for simple example sake doesn't the broker liquidate them before they owe more than what is in their account ?

trying to figure how anyone would need to sell their art and silver as the you suggested ?!!
 
I took five years off. When I came back the first idea was to just give up trading, and go into the insurance business. You want to buy a put? I'll sell it to you. You want a call? I have them for sale.

Seemed like a no brainer, since most long option buyers lose.
 
Quote from oldtime:

I took five years off. When I came back the first idea was to just give up trading, and go into the insurance business. You want to buy a put? I'll sell it to you. You want a call? I have them for sale.

Seemed like a no brainer, since most long option buyers lose.
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Yeah 90 percent go worthless, its is a worthless statistic too !

I drive my car until its almost worthless but used it a lot get it ?
 
Quote from optionbull:

Yeah 90 percent go worthless, its is a worthless statistic too !

I drive my car until its almost worthless but used it a lot get it ?
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no kidding, you gotta admire these guys, especially when they have stayed in business in spite of selling homeowners to all the residents of New Orleans before Katrina
 
Quote from sellindexvol66:

Her Strats has been proven to ultimately fail time and time again.
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Now, why do you hate Karen so much? :)

(that is Busta asking, not me)
 
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