Specific notes on Karen Super Trader options strategy
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Ok so making millions is not as straightforward as the title suggests, no snake oil sales here. There is short-term trading which is far more risky as you really need a very particular type of persona to handle the violent ups and downs but it is possible aswell.
This post will be focused on the latter but it is an intriguing approach. While i was learning various techniques last year, i came across a really interesting set of videos which definitely have merit but there are caveats which i will go into later. This dude is an options veteran of 30 years, a great listen and if you ever want to learn about options or futures, this is not a bad place to start.
Anyway, these guys posted up a few videos last year and one recently of a retail investor affectionately known as Karen the SuperTrader. A little options knowledge will be required but grab a cup of coffee, sit back, relax and enjoy the following 3 videos courtesy of TastyTrade.
First video of Karen. Following these rules guarantees success? She is very experienced, a great eye for support and resistance in the market is absolutely key. The alternative is to sell options on futures, the buying power reduction is much lower, take advantage of SPAN margin, this essentially replicates the same strategy above but the time frame can be much shorter,such option trader makes $105mm profit weeklies option contracts.
She seems to be very genuine and at the end of video 3 covers a charity that she gives most of her money to, that to me is a worthy cause if anything else. Like the write up.
The last time I really sold puts or calls was during the financial collapse. The premiums collected were insane. I agree that it is definitely easier to profit from selling options.
You have to go with the odds, and most expire worthless, so you can collect the premium and move to the next trade. I have just started selling covered calls again this year. Hey Ryan, thanks for the comment. Agreed, premium selling is a great strategy and it was a great bunch of videos by Tasty Trade. I want to employ more of it in my own strategies. There are other interesting people to follow on Twitter — one such user is SeaPower, he is doing a similar strategy with the options on futures and on the weeklies.
The margin requirement is much lower and is knocking it out the park. Still need that experience though and the psychology of it all is such an important aspect.
Will cover that side of it in future articles. She is always on about non-directional focus. You want as many parameters in your favour, selling premium means you have time as your friend, you get paid every day that passes. If you focus on direction i. Volatility can be your friend aswell but needs careful monitoring.
The transition from a low volatility to high volatility or high volatility to option trader makes $105mm profit volatility environment is the most dangerous time. Use of bollinger bands and experience option trader makes $105mm profit help determine extremes of the market and then step out further.
Sells the puts into market weakness and calls into market strength which means she can take advantage of the premium boost that occurs and collect more for the same probability. Contracts are sold up to 56 days out. The further the time out, the more premium you collect but also increase the risk that the market may swing against you. Selling LOTS of contracts all the time.
Use of portfolio margin as provided by thinkorswim allows you to option trader makes $105mm profit more with lower margin. A lot of capital is needed to follow this strategy, she had option trader makes $105mm profit huge amount of capital invested in her once the strategy works out and as a result can option trader makes $105mm profit several hundred contracts actively.
Never gives money back, not had a losing month in No use of stop losses. Selling calls much tougher than selling puts, tend to focus on puts. Risk management is absolutely key. If a position is in trouble, often take option trader makes $105mm profit position and move it further out in the same month or counter-balances with calls or puts. Rarely pushes it out in months but had to do that once or twice in an extreme situation like the flash crash.
You need that buffer option trader makes $105mm profit there in case something goes wrong option trader makes $105mm profit you need to change positions quickly. Always watching net liquidity of account which represents the value of your account if all positions were liquidated at the mid-point between the bid and ask. Low volatility is tricky, prefer high volatility. Comments Like the write up. Leave a Reply Cancel reply.