Prediction: The SEC will fine her and decrease her ROI from 5000% to 4900%. She will enjoy a nice retirement in Palm Beach, Florida.
The october selloff was not that big. How could she survive 2011 and not 2014? Maybe she got burned selling calls . She and victor should pair up to launch a new fund once the dust clears up
You might be joking, but I wouldn't be surprised if she only gets a large fine and has to forfeit the fees. After all, after 2013 the unrealized losses were disclosed, the HF papers fixed. The scheme trades itself weren't strictly illegal (my street lawyer self says so), it is like sending Musk to jail for doing non-GAAP accounting with Tesla. There was one count where she is guilty for sure, I think the charity fund didn't have the disclosure of certain trades type/accounting version. (or something like that) They could get her for that but the rest can be the usual Enron defense: "I am stupid, not a criminal." Incompetence in America is not a sin... Were the scheme trades immoral? Yes. Were they illegal though? We shall see... Son, I did read the links, thus I am more familiar with the case than you. Don't hate the messenger because the system is corrupt, all I am saying... Also, when you have money you can buy a good lawyer. Good lawyers get you off....
The lack of jail time is why corruption is still so permanent in this industry . Do the crime..if caught fess up, settle.
Just saw this posted on the Tasty Trade website. Like many, we are concerned about the SEC investigation into the accounting and reporting practices of Karen Bruton and her firm Hope Advisors. Ms. Bruton is not an employee of tastytrade and last appeared and was interviewed on the network 2 years ago, as a guest. In light of the investigation, we have removed all past videos airing Ms. Bruton for the time being. We at tastytrade believe in full and transparent disclosure by money managers and will continue to advocate on behalf of the retail trading community.
Also all the Tasty Trade Karen the Super Trader Youtube Videos have disappeared. It was only a matter of time.
I think there is a part of the story what we haven't heard. You are right that 2014 shouldn't have caused any loss had she done the same type of trading what she did in the 2 previous years. The Yahoo boys live traded her system and made 18% in 2015 with much higher volatility. So she either suddenly over leveraged or as you said, she got burnt on the call side, when the market rallied 12% in 6 weeks...
One plausible explanation is while trying to cover up the losses you are no longer focused on making good trading decisions with entries nad risk management so the losses just get compounded with one mistake after another. If you are selling premium to try and cover losses I bet the options sold were not necessarily sold at best pricing/timing since all she cared about was the timing to cover her ass.