Hello Saltynuts! I am constantly tweaking the strategy as I become older and wiser. I do feel now that I have improved upon Karen’s strategy. And, the plan is amazingly simple. Sell a 2 delta put at 150 DTE. Close that puppy for a 50% profit. Rinse and repeat! I do implement hedges to protect my little golden goose. The hedging is probably not necessary, but because I hedge I sleep like a baby at night. And I might as well put on the hedge, because it doesn’t cost me any capital and actually provides additional income. It is impossible to “blow out” my account, although there are a number of contrarian opinions on this forum.
You are incorrect in your assessment. I never said it’s the holy grail. Figuring out how to trade is a lifelong endeavor but I’m doing quite well.
Yes true, I used the wrong verb tense. I should've said: but she WAS actually being investigated and sued by the SEC. Damn English!!! Well the only difference between her and Cordier that she rolls instead of just continuing to take on new losing positions. And because she rolls, she was able to defer the losses. Basically all she's doing is averaging down or averaging up depending on which direction she is losing until eventually the market turns around and she ends up winning. But if a "rogue wave" hits and she over-leverages, she would be just as doomed as Cordier.
$100+ million? Hmmmnnn, that's about how much the ball-park figure that Cordier has lost. All the luck to her! Hope she doesn't run into "rogue waves"!
Link ? Going to call this BS or outdated until you provide some proof. Latest I've read in Sep 2018 is that she is banned from trading and accounting. I am happy to be proven wrong. There is also no proof she made profits (or loss). The details are that she collected undeserved fees by only marking realised trades in her calculations of profit fee. There is no details on whether overall it was net profitable or not.
You didn't read that because that never happened. But you can try to provide a link. She settled out of court with the SEC... Edit: I'll be damned, you are actually half right: "The commission temporarily suspended Bruton and Roberts from doing business as accountants or investment advisers. " https://eu.tennessean.com/story/new...d-nonprofit-fined-1-5-m-sec-fraud/1436312002/
Me too. When you are a good accountant/lawyer, you can make the wording of the HF contract in such a way, that even when you royally fuck over your clients you are still in the "right" by the law. I will include this link here for future reference: http://www.rrbdlaw.com/4204/securities-industry-commentator/ "which resulted in Hope avoiding over $50 million in losses in the hedge funds while earning millions of dollars in fees to which it was not entitled. The Court entered a consent judgment against Hope and Bruton ordering them to pay $1,237,235 disgorgement and a $250,000 civil penalty" If her HF fees were more than 1.5M, she still came out ahead, minus lawyer fees.... Not bad for outright fraud....
So we never actually know if her fund is net positive or not..it could be in a massive DD or still in profit just she over claimed profit fees. I'd still like to know where Sweet Bobby claims she is still trading and that she made profits.