Selling naked options along with diagonal spreads on the SP500 is all I have done in the last 4 years. Lately with the market going nowhere but higher I lost money. Last year I was down 2.5%. I wish I did what she did her strategy is brilliant. One can do it with a very small size to be more conservative than Karen. The vast majority of professional option sellers last year was down. Say with selling calls instead of 25% up you are 9% up so what ? It would still be a great year for anyone managing a substantial amount of money.
She might lose a lot of money but I tend to doubt that she will ' get caught " to the point where she blows up.
She has done very well, she is making money. Everything else is irrelevant.
My questions: the trend is still up, is this still going to work ? I certainly will try out and play a little with her ideas.
Most of all: why talk about it ???
