What's the current view of Tasty Trade after Karen-the-Faker?

drcha said:
I wonder if she got bad advice or if she was too stupid to get any....it strikes me that the same person who thinks they can avoid a huge loss at some point when selling short straddles might also believe that the regulations aren't that important and that it might be ok to dupe the investors for a charitable cause. Did anyone think she seemed narcissistic in the videos?
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She seemed to be an accountant who thought she had a unique way to defer losses and keep earning a paycheck every month. For example, apparently she would donate a portion of the profits to the charity which would then put the money back in to her fund. Seems like a tax loophole she was trying to exploit. Not saying there is anything wrong with trying to work the tax code, but to me that shows the mindset she was trading with. She probably thought that in the end it would all work out, just keep rolling until the market stops moving and then you are back in the green.
 
Dolemite said:
She seemed to be an accountant who thought she had a unique way to defer losses and keep earning a paycheck every month. For example, apparently she would donate a portion of the profits to the charity which would then put the money back in to her fund. Seems like a tax loophole she was trying to exploit. Not saying there is anything wrong with trying to work the tax code, but to me that shows the mindset she was trading with. She probably thought that in the end it would all work out, just keep rolling until the market stops moving and then you are back in the green.
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The sad part about Karen Burton, super trader or jailbird, is that TOM still defends her. She is a mini Madoff... period.


If her strategy was an honest one of rolling until it goes her way, why did she bill SIX MILLION on fake profits? She could have not billed and then maybe i'd believe her. Also people who exited early didn't lose; IE Ponzi scheme implications clear as day. They were able to get a piece of the FAKE profits she billed on. Karen maybe going to jail.


Either way, The reason Tom Sosnoff defends her is obvious, she supports the TastyTrade mantra. However she did not make her profits the TastyTrade way, she made it the old fashioned and guaranteed way; With FRAUD.
 
Well Fraud has to be proven. I've read through the SEC document. It will only work if the Scheme trades end up being scheme trade. I don't think so. unrealized losses are unrealized.
 
Dolemite said:
She seemed to be an accountant who thought she had a unique way to defer losses and keep earning a paycheck every month. For example, apparently she would donate a portion of the profits to the charity which would then put the money back in to her fund. Seems like a tax loophole she was trying to exploit. Not saying there is anything wrong with trying to work the tax code, but to me that shows the mindset she was trading with. She probably thought that in the end it would all work out, just keep rolling until the market stops moving and then you are back in the green.
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I don't see anything wrong with using calendars. Of course at some point you have to take the loss. But if you can take a loss on long call in first part of the month and sell calendars later in the month that make the loss positive why not do it. SEC allegations are only valid if one accepts the calendars trade were bad for the investors and where schemes. Tell you what She can invest my money that way all day.
 
paladinhgwt said:
The sad part about Karen Burton, super trader or jailbird, is that TOM still defends her. She is a mini Madoff... period.


If her strategy was an honest one of rolling until it goes her way, why did she bill SIX MILLION on fake profits? She could have not billed and then maybe i'd believe her. Also people who exited early didn't lose; IE Ponzi scheme implications clear as day. They were able to get a piece of the FAKE profits she billed on. Karen maybe going to jail.


Either way, The reason Tom Sosnoff defends her is obvious, she supports the TastyTrade mantra. However she did not make her profits the TastyTrade way, she made it the old fashioned and guaranteed way; With FRAUD.
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First there isn't any jail time involved. the profits were not fake. I take profits in my trades this week nothing wrong with that if there is a unrealized lost sitting there next week I have to address. Seems pretty good trading to me. Market makers take these types of trades daily.
 
Holy Fucking Molly, here is an apologist Ostrich, if I ever seen one! Mr. Scrooge, let me kill your arguments one by one, if you please:

1. Fraud was already proven, if you read (as you claim) the documents. The scheme trades didn't do anything profitwise (being a perfect hedge, if you know what that is) but concealed the realized losses.

2. It doesn't matter if TT has a reduced rate, their mantra of "Trade small trade often" is for generating commissions, period. Their main goal is to drive customers towards TD...

3. Of course she had to take a loss eventually, except she was pushing this time out to infinity. What she was hoping for in the maintime is unclear, but she was being paid for non-existing unrealized profits. And yes, these trades were bad for the investors because they didn't increase their investment (again, a perfect hedge) but they were charged for it.

4. We don't know about jailtime yet, it depends on how good a lawyer she has. (so far not very good) There were no profits after 2014 October and possibly earlier.

5. Don't compare Karen to a market maker, she was a HF manager, different goals entirely...

If you want to know anything else, just ask freely....
 
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