Golden Gecko Options Trading: Karen the Supertrader Style

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Comments

1. Selling Naked Options has been around for decades and everyone doing it has eventually blown up. I think Karen just has no idea how much risk she is taking. The volatility regime has been very benign since 2009 (thanks to the FED) and she has gotten away with it. In fact this strategy has been so widely discredited on Wall Street that no major hedge fund engages in it. Why not? Because there is no such thing as a free-lunch. You WILL lose your shirt at some point..plain and simple.
2. Hey Mark, I don't understand the way you are describing rolling. When shorting strangles, aren't you suppose to roll the call side if the price tests the put side and roll the put side if price tests call side?? I'm still really confused on how you roll the positions. Thank you
3. excellet claryfication on Karens method....
4. great clip. thanks for this!
5. You make so people can actual understand what is going on.
6. Nice take on Karen's method, thanks.
7. Much mahalo's!! I've been trying to wrap my head around her strategy, and you just made it clear!! Thanks and Aloha!
8. Hey i just wanted to say your video really helped me out getting around Portfolio margin and the rules on selling strangles or OTM puts or calls, For the longest time i stayed away from selling spreads but i like what you are doing here with the Golden gecko and making a synthetic Strangle. Keep up the great work!!
9. If I was to close a position early with one put, let's say the probability of that stock went from 84 percent to 70 percent and I still had 20 days to go. Would I take a maximum loss by closing the position early at the end of 20 days?
10. She's selling naked Puts and Calls.  Most beginning trader won't be approved to do that.  Would selling spreads give us enough of a return?
11. hitit monkey, first you said she buys back the option, when she does that , does she keep the difference eventhough the option play is for 60 days? and as she repeats the process till about 40 days, does she keeps the profit as the options expire? thanks you also is that your Lamborghini in the picture? hahaha
12. Thanks for making this. I've watched Karen's appearances on TastyTrade, but was somewhat mystified about her strategy. This has really helped.
13. Hit, is that your lambo?
14. With PM she is likely risking around 2-4k in margin per contract - probably a little more to manage risk. I don't know what her performance numbers are but I would guess she aims for 2-5% / month and most put side trades last ~ 1 month - so she is probably allocating ~10k of her portfolio per contract (550/12k = 4.5%)
15. Okay, let me see if I understand what the Karen Supertrader method is all about: you buy/sell at 2 SD. It's sort of like a strangle but the big difference is that you don't enter the opposing trades at the same time. If one leg of the strangle isn't quite at 2 SD, then I guess you wait until it is. And the reason you wait for 2 SD and nothing less is because your POP is 95% (much higher than 1 SD @ 84%). You also enter trades 65 DTE because that's where theta decays the FASTEST (theta decay slope starts to tilt hard on a graph). If you have reached near 50% profit and the theta decay is still in the "good range", then you close that position (taking profit) and just turn around and enter a new trade as long as your buying power is still okay, entering using the exact same criteria...that is, that the new trade is 2 SD away from the strike, etc. I'm assuming you don't even THINK about entering trades that are more than 65 DTE or less than 45, again, because theta decay is too slow above and below this zone. This is important because if theta decay is too slow, then your positions are waiting too long to collect premium; and it's bad too wait longer than you need to only because you are tying up capital. One more thing: I assume IV Rank needs to be above 50% with ALL trades, no exception.
16. Can you please tell me, what platform are you using? It seams very easy and graphic. Much user friendly than thinkorswimm
17. Does 2 x standard deviation refer 2 strike prices lower ?
18. Just started watching your videos hoping to learn options along with some of my family. You out here in Hawaii too? We live on Oahu! Mahalo for the awesome content
19. Thanks very much for this video!
    After listening to Karen... I have to learn how to do this or something similar.
    Some people think she is risky ruin with her strategies?  I don't think so, since she does thousands of contracts and spreads out the risk accordingly.  Plus, she has usually 50% of her capital in the market...
    
    can you do another full video of this...?
    Are you using this strategy yourself?