What does Karen the Supertrader and her results say about volatility? Oversold?

Discussion in 'Options' started by shooter, Feb 16, 2014.

  1. FHS

    FHS

    thanks for info.
     
    #311     May 1, 2014
  2. Word on the street is that she was the one selling all the Oct calls in the VIX today.
     
    #312     May 1, 2014

  3. I hope that's accurate info.
     
    #313     May 1, 2014
  4. FHS

    FHS

    I've never heard her mention selling calls on the vix. I'd be surprised.
     
    #314     May 1, 2014
  5. I have not heard her name mentioned before either, but the way the trades were executed today (on the screens, as opposed to by a broker in the pit) had people asking questions, and her name came up. This is not a customer the pit has seen before.
     
    #315     May 1, 2014
  6. sle

    sle

    Actually, that does make perfect sense given how cleanly it was executed.
     
    #316     May 2, 2014
  7. elite74

    elite74

    I wouldn't be surprised considering it is hard to get any decent premium on SPX these days.

    I don't like the trade if it is a bunch of naked VIX calls, October is a long time away.
     
    #317     May 2, 2014
    i960 likes this.
  8. Surprise

    Surprise

    +1

    And what's her max DD , sharpe , how much she risks per trade , win rate , when she closes for a loss ... etc .... etc .
     
    #318     May 4, 2014
  9. I think we can all agree selling directional betting premium in a defined trended market will make you money. Selling puts in a bull market. Selling calls in a bear market.

    But lets put it another way. Maybe she made a lot of money between 2008-present. But if she kept it simple and used all that margin room to just buy the S&P futures, she would have been up way more. Because lets face it, its been a 5 year bull market. Selling puts is profitable. But so was just being long the market. And if you slap leverage to this, then how can you go wrong?

    The question is how nimble are you in the market when market conditions change. The industry is old and full of smart and experienced people where all strategies have probably been explored already. And since we're talking money, nobody is out to make friends here. Nobody will share their money making secret, and if there is such a sure win strategy, everyone would have adopted it by now. And if everyone adopts a strategy, people will bet on the other end, and eventually the rug will be pulled from under you during the dump cycle.
     
    #319     May 4, 2014
    i960 likes this.
  10. That or they're really bullish on cattle/beef prices!
     
    #320     May 4, 2014