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

nothing about her sets off my bs detector.

taking on risk of ruin apparently gets paid, until it doesn't

 

she said 25% or so profit 2013. Avg for et members I know, but still, pays the bills

 

wonder how much made trading vs selling shovels.

my bet 300-1 ratio, guess which side

 

Who is taking the losing side of her trades?

 

Everyone buying insurance. But to them it could just be a 'cost' of holding long stocks/indices, and not a 'losing trade'.

 

if she is short the 180-170 puts ,say 200 of each,thats 2000 puts, she's long 2000 ,169 puts at a penny,so risk is defined and margin lowered,can't imagine any firm allowing the risk otherwise, first options corp ate a 50 million loss from a trader that had 2 million in his account in 87 with loads of seemingly worthless short puts

 

Agreed, well said. I've been following her interviews with great interest.

When she rolls down a short put that went from 5D to 30D, she indicated they will sell two more puts at lower strikes. This is a quasi-martingale strategy. The recent bull market saved her.

 

How do you explain her surviving 2008 and that's when the real money poured in?

 

I don't know how she was trading six years ago. I was commenting on her interview last week and how she described her current trading strategy.

 

pretty crazy...odds are we may not see that again any time soon.