We have no idea what happened to her in 2008.
New Investors money could have offset losses ... we just have no idea.
If you do, please take up one of your own challenges and post the time stamp to the video!
What does Karen the Supertrader and her results say about volatility? Oversold?
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We have no idea what happened to her in 2008.
New Investors money could have offset losses ... we just have no idea.
If you do, please take up one of your own challenges and post the time stamp to the video!
+1
There is no proof that she survived the credit crunch nor we have proof of her good performance in any year anyway !
ok. let me rephrase- the next event- which will WIPE out Karens style traders will be unexpected. .to quote donald rumsfields.. unknown unknowns.
i wish I could describe it. but I cant.. the other post gave me an indication. .u sell some thing for 10cents and when mkts open Monday. u have to cover for 17$.
that is what I am talkin about.. u will not have time to react.. the trading house will have to liquidate. and all , but a few. will be left wondering " huh. what just happened?"""
i wish I could describe it. but I cant.. the other post gave me an indication. .u sell some thing for 10cents and when mkts open Monday. u have to cover for 17$.
that is what I am talkin about.. u will not have time to react.. the trading house will have to liquidate. and all , but a few. will be left wondering " huh. what just happened?"""
Every business is prone to black swan events. You have to run your business for the market that is in front of you with your risk tolerance. Those that are uncomfortable with this strategy should stay away. Those that feel comfortable with it, should got for it. Pointing fingers at this strategy because you don't like it or don't understand it is childish.
I like to go with what works. If you worry about the worse case scenario EVERY day, you not meant for trading. Short options positions can be managed responsibly.
1245
I like to go with what works. If you worry about the worse case scenario EVERY day, you not meant for trading. Short options positions can be managed responsibly.
1245
you black swaners crack me up. people have been predicting the end of the world since the beginning of times. and since the world never seems to end, underwriting the positions of those who think it will should be immensely profitable.
+1. True of all aspects of business and life.
There is risk, opportunity, and you have constantly be managing both.
Ha, I don't believe anything related to her 2008 performance. Ask anyone who sold a bunch of puts... like Mr. Buffett. He lost $5B in a few months and $8B including single name. I posted the maths to a thread here as atticus and was notified by Berkshire's lawyers. Guess what? He wrote off the $8B (line items for index and SN) the following year and I was within $100MM of the loss statement in the annual report. The maths were posted here 9 months prior. He sold 11 on the vol-line. Didn't receive a dime in edge. He had the thread deleted, so I give him that.
If Buffett is FOS then what hope is there for anyone investing with a woman who commingles client money in her ToS account?
How is that different from selling hurricane insurance, for example? Analyze the potential loss and size your trades accordingly - you might not be able to make 50% per year but you will be reasonably compensated for the assymetric P&L profile.
PS. I am pretty sure Karen is legit, but the story feels incomplete; maybe she gated investors or was able to raise extra etc. BTW, her fund is not in the SEC database, which rases some questions - like is she actually operating a number of segregated accounts and reports performance selectively.
Sure, being short black swan gives occasionally ugly drawdowns like with Buffett, but overally it should be profitable. Lots of literature on it.