How Karen the Super Trader Makes Money

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And she does it without betting where the markets will go. Instead, she takes a mathematical approach to trading by selling way out-of-the-money puts and way out-of-the-money calls —a super wide strangle. Example So if you imagine an index trading at for simplicity purposes.

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What Karen does is she bets that the index will indeed stay between 85 and However, whenever the mathematical probability increases, the amount of money you can make from that bet gets smaller and smaller.

Like a lot — option 1000 percent order to execute one of these trades. The numbers might even be more — depending on the trade and the brokerage house.

There were stories of traders risking too much and losing everything, and traders retiring by the age of 25 having made their fortune through skill or luck. Another great story came from my old trading company. Learn More One day, my boss and another trader got into a fistfight in the middle of the trading crowd.

For most retail investors, this is not a good idea. This changes the game — as Karen says in the video.

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Her 85 strike put has a 2. This differs from how most options beginners are taught to trade. Most options beginners are told to sell a strangle as a single trade.

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And if it goes bad, then cover the strangle at a loss. But Karen manages it differently.

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She treats each side separately, individually. She might realize the gains on the call side and re-initiate yet another short call.

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So by constantly adjusting when needed — she is able to be highly consistent. Instead, we do the next best thing — which is super wide iron condors — which effectively mimic super wide strangles.

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But hey, this is as close as you can get to her strategy — without constantly monitoring and adjusting on a daily basis. So how exactly are we implementing this strategy?

We have a bit more of a directional strategy and we use weekly options rather than monthly options — so we generally get results within a week or so.

  • Он не общался с внешним миром; он сам по себе был Вселенной.
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