What does Karen the Supertrader and her results say about volatility? Oversold?
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i think she specifically said she is NAKED . so no spreads. reason is. that the tail end is so far off, that she doesnot need to cover the other leg, plus costs add up.
i agree but for the price of a cent the margin drops off substantially,can't believe she wouldn't take advantage of that in a couple of ways,hard to believe she could get a firm to let that fly
One thing I found strange that her AUM didn't grow from last year, although she returned 24% and 27% in 2013. I guess the investors took out all the profits AND she wasn't interested in getting new money. Maybe under 200 million is her comfort level...
The other strange thing is that Sosnoff never really asked the "how did you survive 2008?" question, which would have been the most interesting topic of the whole interview....
The other strange thing is that Sosnoff never really asked the "how did you survive 2008?" question, which would have been the most interesting topic of the whole interview....
He has repeatedly stated that;
- she wasn't really trading in 2008;
- her results 2009-13 were primarily from being short puts in Bull market
- she uses leverage and risk that are way to rich for him
- the next crash will reveal whether her strategy can survive a full market cycle
There is no magic in what she does; primarily sell puts on max leverage.
Cheers
James
- she wasn't really trading in 2008;
- her results 2009-13 were primarily from being short puts in Bull market
- she uses leverage and risk that are way to rich for him
- the next crash will reveal whether her strategy can survive a full market cycle
There is no magic in what she does; primarily sell puts on max leverage.
Cheers
James
Perhaps so, but the proof is in the pudding, and she has made this simple if risky strategy work for her. The hard work is in the analysis of position to put on and sizing, and then managing the position when things start to go south.
One nuance to her strategy is that she only sells calls on up days, and presumably puts on down days.
Incorrect. She has been trading since 2002. Her return in 2007 was 50% on 100K of her own money. That's when people started to give her money so her AUM went up to ~800K. So she was managing about 800K in 2008, and she repeatedly said that they were looking for fleeing to Mexico, so she was definitely trading...
If Sosnoff really said that he is misleading his audience and he must be not remembering the interviews earlier...
Incorrect. She has been trading since 2002. Her return in 2007 was 50% on 100K of her own money. That's when people started to give her money so her AUM went up to ~800K. So she was managing about 800K in 2008, and she repeatedly said that they were looking for fleeing to Mexico, so she was definitely trading...
If Sosnoff really said that he is misleading his audience and he must be not remembering the interviews earlier...
As you have clearly listened to all her interviews, and has a track record since 2002, what was her return in 2008?
The Mexico comment was referring to the flash crash in May 2010 which only fell about 9%!
Cheers
James
There are no track records for her just stories and interviews = PR .
Post #48, I reposted the summary of her records. Now that post says she made 50% in 2008, but maybe I was off by a year and that was in 2007, I highly doubt she made 50% in that year. But if she did, that would explain why so much money started to pour in. Maybe she recognized the crashing conditions and sold only the call side...
The Mexico reference was made clearly to 2008, volatility was way bigger than in 2010...
(thanks again to Baron for finally numbering the posts)