23. When Soros gives you sound advice, listen. "There was a flaw in his approach however. It is valid only in a trendless market. If there is a historical trend, a tide, .... he can be very seriously hurt, because he doesn't have a proper fail-safe mechanism." I think a Karen vs. Vic comparison is due since they seem to employ very similar strategies. The differences as far as I understand them: 1. Karen also sells OTM calls, not just puts. 2. She adjusts the positions actively. 3. She somehow survived the 2008 meltdown. 4. She keeps capital for further adjustment in case of big market movement. 5. She is a licensed insurance agent. (just kidding) So I guess I will take Karen's advice over Vic's.... Her fav book if anyone wants to do the same: The Option Trader's Hedge Fund: A Business Framework for Trading Equity and Index Options http://www.amazon.com/Option-Trader...r=1-1&keywords=the+option+trader's+hedge+fund
I like that book actually, simple and very practical oriented. Haven't done much in the way of trading credit spreads or writing naked options though.
I think it's important to add that VN prevailed in his lawsuit against the exchange--- someone can correct me but I believe the exchange closed early not allowing VN to work his positions---
Does Karen even exist? I thought she was a marketing ploy of TOS like Ronald McDonald or something ----
" Niederhoffer was the only one of his managers who retired voluntarily from trading for him while still ahead. Soros held Victor in such high esteem that he sent his son to work for him to learn how to trade." George Soros. Alchemy of Finance