What does Karen the Supertrader and her results say about volatility? Oversold?

[stock777]

nothing about her sets off my bs detector.

taking on risk of ruin apparently gets paid, until it doesn't

 

[stock777]

I think she's legit but they misrepresent her returns.

She didn't make 100mm selling vol. she manages 100mm selling vol. she's probably making 10percent a year or something.

If she was targeting a low leverage style strategy she probably did lose in 2008 but not so much that she couldn't recover when vol was crazy bid in 2009.

Lots of articles about her in the Tennessee newspapers. She has like 7 people working for her (mostly Vanderbilt MBAs) and she donates the fees to charity.

she said 25% or so profit 2013. Avg for et members I know, but still, pays the bills

 

[stock777]

I also think she's legit. I think that tastytrade is reputable in what they offer. I doubt they would do anything to jeopardize that. Sure, everyone has a hidden agenda of some sort, but the information they put out there without selling any sort of strategy is very helpful.

Secondly, Tom Sosnoff is a millionaire, a million times over. I doubt he would have any need in trying to earn a living off bringing fake successful traders onto his show. he's the creator of Thinkroswim, last I checked he is $600 mil in the bank.

wonder how much made trading vs selling shovels.

my bet 300-1 ratio, guess which side

 

[elite74]

Who is taking the losing side of her trades?

 

[shooter]

Who is taking the losing side of her trades?

Everyone buying insurance. But to them it could just be a 'cost' of holding long stocks/indices, and not a 'losing trade'.

 

[ammo]

Actually to be perfectly honest with you, I would not have a clue on how to hedge bets like that. However I would have to believe that she has determined some exit strategy that allows her to stay alive with a little bit of money if the ES opens 50 points against her one day.

if she is short the 180-170 puts ,say 200 of each,thats 2000 puts, she's long 2000 ,169 puts at a penny,so risk is defined and margin lowered,can't imagine any firm allowing the risk otherwise, first options corp ate a 50 million loss from a trader that had 2 million in his account in 87 with loads of seemingly worthless short puts

 

[Trader13]

nothing about her sets off my bs detector.

taking on risk of ruin apparently gets paid, until it doesn't

Agreed, well said. I've been following her interviews with great interest.

When she rolls down a short put that went from 5D to 30D, she indicated they will sell two more puts at lower strikes. This is a quasi-martingale strategy. The recent bull market saved her.

 

[Pekelo]

This is a quasi-martingale strategy. The recent bull market saved her.

How do you explain her surviving 2008 and that's when the real money poured in?

 

[Trader13]

How do you explain her surviving 2008 and that's when the real money poured in?

I don't know how she was trading six years ago. I was commenting on her interview last week and how she described her current trading strategy.

 

[RichardRimes]

look at the average true range on the ym here that was pretty wild.

pretty crazy...odds are we may not see that again any time soon.