Options Trading: Karen the Super Trader

Karen the supertrader ignited the minds of traders everywhere when she first appeared on the popular option traders TV show TastyTrade. She was a retail trader who had built her account of 100,000.00 in 6 million over the course of 3-4 years built her account to 105 million dollars, the largest retail account in the history of online trading.

Everyone was anxious to hear her secret methods and it was surprising to most to hear her strategy, because it was based on simple math and probabilities, plus a lot of watching and adjusting trades. Her strategy is to sell naked puts and naked calls in the 95th percentile, 60 days out, and once she received the premium, she didn’t give it back, unless the position moved against her to the 70 percentile, but she didn’t close her positions for a loss, she would roll them forward to the same month a later date and give herself “more time to be be right”, which is option traders parlance for giving the market more time to move the price in her favor until the position expired. Now because of the size of her account, she had institutional margin rates and because she wasn’t selling spreads, she made decent money selling puts at the 95th percentile. She is legendary in the Option trading community. If you would like to know more, I suggest you watch her TastyTrade interviews.

✍🏼 written by Shortsegments.

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