Oh man, such cosmic justice here - especially to all the people who called BS on this "trader" ages ago.
She must have learned this accounting from some of the TBTF institutions that were utilizing a similar con back during the crisis...Of course, Uncle Sugar had their backs and made some of those pesky "unrealized losses" whole again... Still, she is a disgrace as were her promoters.
What I'm trying to get my head around is that in the Tasty Trade interviews, Sosnoff talks about how he used to monitor Karen's positions/ risk- Just like they do with all clients( I assume under TOS) . So if Sos and the TD family knew what was going on, why did they put her on a pedestal and ramp her so hard via Tasty Trade? Even if Sos didn't know directly, surley someone in the family knew what was going on?
The last interview on TT was about 6 weeks from the Oct 2014 debacle. She was up 11.5% net fees according to the interview. I can believe that as vol was low and selling strangles worked...until... Here's a good article that basically says leverage was her Achilles heel. See below. Regarding her communication skills with investors....very Ponzi like. I'm just touching on the actual trading style. Overall, selling premium works great over the long haul. Just keep your size in tact. That's what Sos always says. I agree 100%. http://macro-ops.com/karen-the-supertrader-goes-rogue/