My feeling is that her fanboyz keep bringing up the metrics she cites in her 2015 Tasty Trade interview and other media interviews and press releases from her office and the fanboyz consume and distribute her bullshit as facts - but maybe they were unaware or blind to the 2016 SEC filing says that NFA performed an extensive audit, that she lost $50M+, and was over a protracted period of time executing option spreads in a timed fashion in unison with her regular client P&L reporting - but ONLY REPORTING TO HER CLIENTS the option leg position that offset the loss. And of course both NFA and SEC also claimed that she was pumping trades and timing those trades to boost management fee calculation schedules. Point being, through this thread and others the Karen fanboyz kept taking what she personally stated AS FACT. Clearly it wasn’t. What do we know as fact? The NFA audit which the SEC used in their filings. If Karen could have produced material accounting and FCM statements that exonerated her, she wouldn’t have agreed to the SEC’s judgement against her two months ago. Karen agreed with the SEC, and in the consent decree Karen does not deny any of the SEC allegations of fraud and wrongdoing. And as of 10/31/2018 she is no longer registered with the NFA/CFTC/SEC to manage client money. Notice how after Karen paid a $100K fine a couple years ago that the SEC wasn’t done with her. The fanboyz thought that she was in the clear (just a bump in the road) but they were mistaken - the fanboyz ignored the fact that SEC never dropped their case. Even then if they had read the SEC filings they would have learned about the NFA audit. In September 2018 there was the consent judgement. But they’re still not done with her. There will be an SEC public hearing scheduled in the future. The SEC will decide her accounting and asset management future. It was also mentioned in this thread that just because Karen paid a $100K fine to the SEC prior to this latest consent judgement/disgorgement/civil penalty that she’s somehow insulated from client litigation because her clients should have known better. I happen to hold an NFA Series 3 and can tell you nothing is further from the truth. That’s like saying that because a drunk driver hit and killed a woman then served three years in jail for manslaughter that the offender is immune from civil lawsuit from the victim’s family because he satisfied the Court’s jail sentence and parole requirements. Fraud tends to void contracts like client/adviser investment pool agreements and risk disclosures. The OP of this thread is jubilant that Karen hasn’t been sued by her clients. I’m not a lawyer. Now that Karen has quite recently agreed to the government’s allegations - if she has any personal wealth or assets to speak of I venture a safe guess that will change in a hurry. To find this out for sure, it would take an attorney with access to a civil suit database.
Man, you talk a lot...And really not saying anything new. Just one little correction. I tend to forget the details, but IIRC this is what her new monthly statement included AFTER the fine. On the 2nd or 3rd pages finally the open losses were also shown, so if a client was interested or knew what it meant, they could educate themselves about the matter. Since I am a lawyer on the interwebs, suing her based on "we didn't know there was an open losing position" wouldn't stand because it was disclosed after the fine. But I should read it again to refresh my memory, although I am too lazy, so I won't... Sure, this is America, you can sue for anything. We shall see how it is going to play out....
And there he goes again, full swing defense, our interweb lawyer. Lol. What a tool. Please keep me on ignore.
So it "sounds" like, and I am only guessing here, that in these highly-volatile times, you are making your main options/future whatever bets short, while going long the VXX futures/options? I have been pondering this idea, but since I trade only futures, the best I could think of is to try to swing long on future equity, and then long on VX future for the hedge. But just as a hedge, not to capture gains in both directions.
I never understood the concept of how retailers interpret "hedges". Why hedge if you don't want exposure and could as well just flatten your position? Hedging is traditionally done when someone cannot get quickly out of a position due to position size and market impact. Or hedges are put on in options books to eliminate specific exposure to a metric but retain exposure to other metrics. In your case why don't you just either get out completely if you want to shun exposure or otherwise size your position with the precise exposure you desire. Hedging in retail space and non options portfolios makes zero sense imo.
Hedging makes perfect sense when you are simply unsure of the direction of a trade. Hell, isn't that everyone who trades? If options guys hedge their positions, well, why? Weren't THEY sure of THEIR initial options positions?
No. Options traders who use hedges in the intended sense shield themselves, for example, from delta because they want to only take exposure to gamma and Vega. When you trade futures your only exposure is delta. It is much cheaper to exit the futures contract or stock rather than trading a hedge which will never be perfect, in essence you are increasing risk not reducing it. There is zero point from an economic standpoint to hedge an equity index future with a volatility future. It exposes you to 3-4 additional risks without even fully eliminating the one risk you intended to hedge.
Ug, you options guys and your greeks are all crazy, I have no clue. *shrugs* I wish I was 25 years younger, my brain could process options and maybe make money with them. :-(
I had to take a look at this chick and OMG, what a mistake, "I want early retirement I have bills to pay so I thought what can I do to trade ...." Laughing my ass off. How anyone can inject funds into this trainwreck is beyond my understanding. I thought we are talking about some sort of hedge fund manager who at least had some clue, this is however pure retail snake oil. Am out of this thread. Check out this nonsense: