That was my idea with Karen's strategy, wait for a fairly big drop, then do it for 5-6 months. Then go defensive and wait for the next drop. The only problem is that she is selling on the call side too, so a quick recovery could be just as bad as a big drop... Last August's drop was slightly less than this January's. How was their January? I am surprised he lost money in September, unless he was selling calls a lot, because the market recovered quickly. Are they using portfolio margin or just normal retail and are those simulated accounts or real?