Karen the "Supertrader"

[slickpick]

Ok so her strategy essentially boils down to selling vol, not sure what's so amazing about this. It's generally one of those strategies that works until it doesn't, you get a nice smooth equity curve then when vol spikes on you - double digit drawdowns.

She may be completely ignorant to this fact or could be fully aware of what she's doing and just collecting management/performance fees on her investors, who aren't fully aware of the issues with selling vol, while the strategy is still good. This is all speculation, but seem like the two most reasonable explanations to me.

I also read that she's clearing through TOS, if this is true it seems like her returns are fairly leveraged. This would really push me away from having any money with TOS, from a counterparty risk perspective.

 

[ammo]

she couldnt do naked short,its short put and call spreads

 

[Hydroblunt]

Quote from atticus:

There is no tearsheet. She's commingling the cash in her own account at TOS. You'll hear about it in the papers, soon enough.

To the tune of $175 Mil? Eyebrows would have been raised long before she got to that number.

 

[dealmaker]

Think of "Karen the Supertrader's" appearance on Tasty Trade as crowd sourcing. Why get upset and scream bloody murder, you would have done the same thing.





ps there is now also "Robyn the trader"

 

[pikachu9]

I want to see an Onion news article featuring Karen the Supertrader getting her own Mad Money type TV show making her viewers billionaires. Happy viewer testimonial: "I sold a bunch of puts just like Karen told me to. Kept rolling the trades. Easiest thing in the world. Bernanke has your back!"

Tasty Trade: taste the sweetness of of their recos! The first to feature Karen the Superdupertrader until she imploded during the Financial Crisis of 20XX (pick your year).

 

[marketsurfer]

Quote from dealmaker:

Think of "Karen the Supertrader's" appearance on Tasty Trade as crowd sourcing. Why get upset and scream bloody murder, you would have done the same thing.





ps there is now also "Robyn the trader"

LOL! indicating a demographic switch from men to women in at home retail trading? the female michael parness or Tim Sykes next? " I was sleeping on the park bench, then I started selling options" the rest is history!

 

[marketsurfer]

Quote from slickpick:

Ok so her strategy essentially boils down to selling vol, not sure what's so amazing about this. It's generally one of those strategies that works until it doesn't, you get a nice smooth equity curve then when vol spikes on you - double digit drawdowns.

She may be completely ignorant to this fact or could be fully aware of what she's doing and just collecting management/performance fees on her investors, who aren't fully aware of the issues with selling vol, while the strategy is still good. This is all speculation, but seem like the two most reasonable explanations to me.

I also read that she's clearing through TOS, if this is true it seems like her returns are fairly leveraged. This would really push me away from having any money with TOS, from a counterparty risk perspective.

If you quit while ahead, sounds like a very viable strategy to me--- have a goal, hit it and quit. why these folks, VN included keep pushing it, is beyond me....

 

[Pekelo]

Quote from marketsurfer:

If you quit while ahead, sounds like a very viable strategy to me---

That's the thing, you are selling insurance, you never know when the next hurricane or flood or house burn down comes. It could take 5 years or 2 months.

Starting after a big meltdown kind of makes sense though. Then you should be OK for a while... Karen's real mystery is how she survived 2008. That's what I would like to know...

Anyhow here is Robyn, the Trader, I haven't watched it yet:

http://www.youtube.com/watch?v=uOtiUO6AZA0

Youtube comments from TT:

"We are not releasing Robyn's last name and her book is not finished, but Tom and Tony have read a copy. Robyn trades mostly SPX and ETF's and we will dive deeper into her strategy when we have her back on the show."

Maybe I will make it a weekend plan to figure it out...

 

[dealmaker]

Why do you think Robyn took the interview? If you watch the video kids are now teenagers, she is a former financial analyst who turned five, six figures into seven. She is prime candidate for a fund of funds manager watching the interview i.e. crowd sourcing.

 

[Butterball]

Quote from pikachu9:

Tasty Trade: taste the sweetness of of their recos! The first to feature Karen the Superdupertrader until she imploded during the Financial Crisis of 20XX (pick your year).

Exactly. Premium sellers look like geniuses until the curtain is pulled on them.