tag:blogger.com,1999:blog-9037227913857168302.post2647671111873367256..comments2023-12-29T04:06:49.319-08:00Comments on Smoothprofit: A summary of Karen, the super trader's option selling strategy in 2013Charleshttp://www.blogger.com/profile/08687636210209057326noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-9037227913857168302.post-37070486961313863602015-12-02T16:16:20.288-08:002015-12-02T16:16:20.288-08:00What is the risk adjusted return?
What is the ben...What is the risk adjusted return?<br /><br />What is the benchmark?<br /><br />Please!!!Anonymoushttps://www.blogger.com/profile/04704005053176294649noreply@blogger.comtag:blogger.com,1999:blog-9037227913857168302.post-43422173886131211692015-12-02T16:15:29.015-08:002015-12-02T16:15:29.015-08:00What
Is
The
Risk-Adjusted
Return
And
What
Is
Th...What<br />Is<br />The<br />Risk-Adjusted<br />Return<br /><br /><br />And<br /><br />What<br />Is<br />The<br />Benchmark<br /><br /><br />Please!!!Anonymoushttps://www.blogger.com/profile/04704005053176294649noreply@blogger.comtag:blogger.com,1999:blog-9037227913857168302.post-72821240593936396932015-10-08T20:20:39.465-07:002015-10-08T20:20:39.465-07:00I believe she said that she's closed out most ...I believe she said that she's closed out most of her current period positions by day 40. Then goes into the back period with just a few to expire. The goal is to get margin power back up for when the back period becomes the current to start selling again. So for puts, 56 - 40 is about 16 days. For calls, she could be doing weeklys at 14 days out.puzzlehttps://www.blogger.com/profile/02893182617236945907noreply@blogger.comtag:blogger.com,1999:blog-9037227913857168302.post-29512532485045142042015-03-18T05:15:23.799-07:002015-03-18T05:15:23.799-07:00"Close positions if profits reach 50% within ..."Close positions if profits reach 50% within 1st 16 days"<br /><br />When did Karen say that? I am trading my version of her strategy. Made about 30K so far this year. I would like to know more about her exits.ztraderhttps://www.blogger.com/profile/03936205806105183135noreply@blogger.comtag:blogger.com,1999:blog-9037227913857168302.post-23542060448573181882014-05-04T08:01:08.943-07:002014-05-04T08:01:08.943-07:00Thanks for your great comments, ironcondorz. I rem...Thanks for your great comments, ironcondorz. I remember reading your mytrade posts before. I enjoyed them.<br />Karen stated in her interviews that she just gave the generalization of generalization of her strategy. I believe She has not disclosed her full system. <br />If you are interested in more heated discussions about the strategy, please join other 240 traders in our study group on Yahoo: https://groups.yahoo.com/neo/groups/supertraderkarenstudy/info<br />Thanks<br />Charles<br />Charleshttps://www.blogger.com/profile/08687636210209057326noreply@blogger.comtag:blogger.com,1999:blog-9037227913857168302.post-84678543870310802482014-05-04T06:50:18.994-07:002014-05-04T06:50:18.994-07:00Hi. I am new to this board but wanted to post som...Hi. I am new to this board but wanted to post some comments. My background, options experience and options trading strategy are very similar to Karen’s. A difference between us is I trade in an IRA so cant use margin and must do credit spreads not naked, unhedged positions. Here are some issues that I have run into – <br /><br />1. I trade the Rut, not Spx. For a small, retail trader, Spx liquidity is poor. Spreads are very wide and 4-5 delta daily trading volume is very small so I usually get prices < mark. Also, prices are in $0.05 increments and if 20-wide spread has a $0.50 mark, I may have to cave on price to $0.45 or even $0.40. Rut pricing is in $0.01 and I can usually get filled by coming in a few cents, not $0.05 - $0.10.<br />2. A big issue I have with her strategy is selling 5 delta and not adjusting until 30 delta. I have found through actual trading and backtesting that a 5 delta spread sold for say $0.50 with 55 days to exp becomes a $4.00 spread very quickly if the mkt goes against it. In order to capture that original $0.50, you must buy in the trade (realizing a huge loss) and then increase the size of your rolldown by 8x – wow, that’s a lot of $ on the line! If the mkt continues to go against you, the drawdown/risk can be astronomical…too much for me. <br />3. I use Bollinger bands set at 30 days and 2.4sd, broader than Karen which eliminates small moves but provides greater safety. I only sell call spreads on upside breaks, not downside because the mkt tends to crash down, not up.<br />4. I don’t randomly sell puts in a declining mkt and calls in a rising mkt. I have developed a set of 6 indicators which I have backtested thru TOS which provide me signals on when to sell. Not perfect but very good. I don’t use fibs because I am not comfortable with them. <br />5. My Roic is around 1.5%/month, although the monthly #s range from -2% - +10%.<br /><br />Bottom line – I suspect there is more to her specific strategy than she mentioned, especially some intangible feel for mkt direction. Regardless, her strategy works for her but doesn’t work for me.<br /><br />Btw, I post many of my trades/comments/ indicator readings on the TOS Mytrade board, username “ironcondorz”. <br /><br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-9037227913857168302.post-59451370269464907322014-04-13T17:32:10.631-07:002014-04-13T17:32:10.631-07:00Thanks for sharing your insight here.
CharlesThanks for sharing your insight here.<br />CharlesCharleshttps://www.blogger.com/profile/08687636210209057326noreply@blogger.comtag:blogger.com,1999:blog-9037227913857168302.post-86147402097268115772014-03-01T21:52:46.970-08:002014-03-01T21:52:46.970-08:00Great Work, I am sure this will go a long way !!Great Work, I am sure this will go a long way !!Prakash shenoyhttps://www.blogger.com/profile/00651080386098155211noreply@blogger.com