Karen the "Supertrader"

Quote from SteveH:

To not explain what happened in detail on a day like that...
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Honestly, if it was you, would you be honest about it? Sure not. But if I remember correctly she did say something like: "we were contemplating running to Mexico."

That tells you everything you need to know...
 
Quote from darwin666:

SHE CLEARLY MENTIONS NO SPREADS BUT NAKED . . CREDIT SPREADS ALSO EAT UP MARGIN...
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Yes you are right I didn't catch that the first time
I believe she said she started with iron condors back when she had 100k than moved on to naked puts when she got more money and that indeed is eating up a lot of margin but when she has millions she can afford it

Surprisingly the margins is no that much only about $14k depending on how far you go out of the money
Now I understand what happened when she said she had a loss because of margin The market probably went down which triggered a margin call so she had to liquidate some of her position to meet the margin

I theory she could have bought a put much further out of the money for a couple of pennies that would make it the same price in margin as a spread and could have bee protected from a margin call

There is one problem I see with this strategy though

While the spx is quite liquid closer near the money I don't see the same amount of volume or open contracts that far out of the money

The 1220 strike that the guy circled in the video showed 0 volume
so she may have to lower her price maybe even below the natural just to get filled or wait for a down day to get filled and it's probably not as easy getting out either unless she is letting it expire
 
Karen Burton aka karen the supertrader hf is called "Hope Investments LLC" you can look it up at sec.gov it is based in TN and has 95mm in funds. Also her filing in 2011 shows 45 mm in funds. There are only two filings.
 
Thats what "they" say...evidently she didn't listen to "they" :)

The part of the interveiw I caught where they did ask her abt the flash crash she said she got hurt but I think she just kept rolling out which is always a bit easier than trying to roll a spread.
 
Apparently she's raised 150MM for her fund.

Hope investments sends its fees to a charity she created (like the Children's Fund).

I think that the mis-information in this thread is that she didn't make 100MM selling iron condors. It's unclear what she made, but she has raised over 100MM to sell iron condors.
 
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