2021 Karen Bruton talks life and Trading with Dan Sheridan
ฝัง
- เผยแพร่เมื่อ 8 ก.ย. 2024
- "Karen the Supertrader" Bruton sits down with Dan Sheridan to catch up on life & trading in 2021!
To learn more about Dan Sheridan and his Options Education, visit:
www.sheridanme...
Questions? Email us at info@SheridanMentoring.com or call us at 800-288-9341!
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Karen starts talking at 7:00
Her trade strategy at 9:01
How she got into options at 31:00
SEC at 34:50
Just Hope at 39:40
No handouts at 43:08
Her book at 47:45
Thank you
Thanks
Thanks
Really interesting! It's great to hear this update from Karen the Super Trader!
Karen’s still my hero. My trading sounds just like hers. Thank you Dan for providing this video.
She either lied to the IRS or her investors. There is a reason she is sanctioned by the SEC
great interview.Dan karen is a proud person serving god and can not wait about what she has to say in that book. stay safe
Wow what a great interview. Did not know Karen has such a dedication to her Ministries In Africa. More Power to her. Looking forward to reading her book.
What every one wants is a class on her trades. LIke a years of her trades.
Thanks Dan and Karen! God bless.
Great interview Dan, well come back Karen (with high Spirits) may God be with you.
Dan, thanks for the great interview. Best of luck to Karen. It is hard to come across person like her.
Pure Gold! Thank you Dan and Karen for this. Too good 👍
Karen must be protected at all costs
Pre ordered the book, can't wait to read it. Karen follows her heart not money and that's how she won!
She won by defrauding people, I'm sure God has a special place for her in Hell
She won? Lol. She broke the law and got sanctioned because she was greedy
She deserves the youth serum she has such a graceful caring compassionate entity.
👏🏾👏🏾👏🏾👏🏾👏🏾👏🏾👏🏾👏🏾👏🏾👏🏾👏🏾👏🏾👏🏾👏🏾👏🏾👏🏾👏🏾👏🏾This was FREAKING AMAAAAAZZZZIIIIIIIING!!!!! Especially the story about her dad and how she grew up and what she was able to accomplish in Peru, Malawi and other parts of Africa... I was trying to watch this video to learn her strategies and execute them properly. But, what I learned is this woman is deeply blessed and she's giving back so much of what she's been blessed with. Wow! Just just amazing!!!
Where can I learn 'exactly' what she's doing? I want to turn this into my life and want to model myself after her.
I remember when I was just starting. Thanks Dan
Thank you for posting this excellent interview Dan. Great questions on Karen’s risk management approach.
Thanks for this Dan.
I have learned so much from you and Karen and I am thrilled she has moved past the SEC garbage. May God continue to bless you both.
Yes the best is to learn from people who lack integrity. They’re the best!
What makes SEC garbage. From this interview talking about God and not talking about SEC was out to get the little man seems like she was the one making things up. Not only that, the way she talks about trading looks like she has no clue what she's doing.
GOD bless Karen. and thanks so much for the interview!
He does get better? But, what a great and inspiring interview. Thank you both!
Thank you Dan for making this inspiring video available. Great interview! It is heartwarming to hear Karen's story and how God blessed her during her journeys. I feel like I got to know both of you a bit better and enjoyed seeing glimpses beyond P&L curves and option strikes.
Karen is a humble person, she served God, she bought no lamborghini, had no lavish lifestyle, no luxury. She asked God for help, and God helped Karen and she was able to make lots of money and devoted her spare time improving poor people's lives around the world. There should a movie about her..... but again most humans are attracted by money and The Wolf of Wall Street ...not much the Lamb.
Glad to hear Karen again. She is not a fraud.
Great inteview Dan! Thank you to you and Karen for sharing this story about trading and faith in the Lord! Look forward to getting the book.
Great interview!
On a side note...how does that Dan Sheridan just get better looking every day? I need his beauty secrets :)
Great questions and dialogue. Thanks so much. Karen is really a sweet lady.
Karen is a hero. Glad to her she was able to put this SEC garbage behind her. It is just like the government to send someone who does not even know what a put and call is to investigate. I saw the same thing in medicine. Government sends out people to investigate that do not have a clue how a medical practice is run. Keep up the good work you are doing Karen. Thanks for the interview Dan.
I highly doubt they didn't know what a call or put was. Investigators ask questions they know the answers to in order to set a baseline to know how the other person answers questions truthfully so they can later get a feel for when they're lying.
I’ve always been a fan of hers, but having been in the game as long as I have, something about this interview is just “off”. There’s no way you can manage that amount of capital and not have *really* defined rules. Seems like she makes casual decisions. Not accusing her of anything, but something isn’t right…
Great interview , I just saw her interview with Tom sosnoff form tasty trade a few days ago (from a few years back ) can’t wait for her book
Thank you for this video & Karen thanks for being inspiring 🙏🏼🌈♒
omg Karen, I just checked in on your SEC claim status after watching you for years successfully rolling options. after reading everything it seems you correctly rolled options in your fund and before your losses could turn profitable again they shut you down from trading and forced you into a loss. this is absurd and any real options trader can see that you were completely screwed by the SEC. Do you think a bigger firm or market maker tipped off the SEC to force you into a loss? This is a huge conspiracy of meddling here. I just started my own fund and although it is sad to see how they screwed you it gives me insight into be very cautious how the SEC sees a loss for the year.
Great interview
Very good! Thanks for sharing the story.
Remarkable lady.
She’s awesome! She’s successful because she doesn’t get stuck in paralysis by analysis..
Amazing story🙏
In our world of 'wokeness', it is inspiring to hear from an authentic person with a heart of gold
You talk about 'wokeness' like it is a bad thing.
Karen was literally committing fraud in order to bolster her incentive fees and steal money from clients.
Why do people think rolling isn't taking the loss?
When shorting options the underlying has to stay below or above a price by a certain date. If by that date the limit was breached, rolling the options extends the time limit further out in time. She rolled just a few times and always managed to exit profitably on subsequent dates. Rolling out is not too different than rolling up or down. Rolling out can be done for a credit too. The question to you is why call rolling 'taking a loss'?
@@EdwinChenLoo The reason you roll out is because your trade isn't profitable. Therefore it's a loss. When you roll out or up or down you are just taking another trade on the same assumption which you got wrong in the first place. Seem like an odd way to frame something that isn't working. If you still believe it will work out go for it but It's still a loss and a losing trade. All rolling out or up/down normally does it put you in the red further until your thesis plays out. If it doesn;t you lose even more. Yes you can continue to roll but it's additional losses.
@@IsaacWendt I have rolled many times myself already. One first tries to do it for a credit but at times I have paid a small debit.
@@IsaacWendt there’s a difference between paper losses and realized losses
@@sovietsandvich8443 true but rolling isn't a paper loss. Your account losses the money. Try rolling $1000 when you are losing trades. Doesn't work. It's real loss.
Friendly reminder that Karen was in a suit with the SEC for covering up investment losses.
Karen trades Like a Ninja... I love this I am going to open a Tasty account on Monday
Karen would you loan me 12k please for about 6 months? Please and Thank you
@@Firstmajortomlikestoticker why 12k?
@@gavnonadoroge3092 I am not Greedy
Very nice person...so touch
I like Karen, and I believe her heart is in the right place. Even if the SEC didn't know what a put or call is, she still charged clients fees for profits when there were huge unrealized losses that the clients were unaware of. I was hoping she would address this in the interview but she did not. So unless you were a client or spoke to one, ask them how they felt about paying fees when the accounts were actually down. So even if she didn't use a penny of the proceeds for herself, they still came from investors who lost money. I hope I am wrong, but this is my understanding of what the reality was for her investors. They lost money so she could do good by others.
you're spot on Mike from my understanding. No one was hurt because the market always came back. But that's not how mark to market accounting works.
So to my knowledge no investor complained. And I personally don’t know when and how Karen collected the 20%. But the accounting was made clear to investors. But for me I want to understand how Karen trades.
Do you have more details? It would make no sense to mark to market for option strategies like hers -- we don't know literally what she did, but for risk-bound option strategies in general, especially such with defined exit conditions, a position's mark values will fluctuate by design. And it makes no sense to use mark as a reference points. It also makes no sense to have one month of no position just in order to the year end accounting.
Nevermind, I read the SEC filing. Burton's fund had a very particular accounting practice that she and co exploited. Seems like fraud to me
Correct me if I am wrong and not defending her or anything. But every mutual funds (hedge funds) collect fees (Including Vanguard or even SPY etf), doesn't matter market is up or down. Some funds collect performance fees, that's different story but all funds will collect basic fees no matter what.
Incredible history, what the SEC did to her ?
I find the Problem with selling .05 delta puts is that a pullback or crash would wipe out all your profits. Sounds she just rolls out to the same strike instead out and down or out and up for calls. I like selling weekly less exposure to the market and most downturns go down slow historically.
Risks is relative to profits.
I can't find that book in amazon.
She is nice lady
Great woman and even greater interviewer
@ 28:05 what does she mean by “…when the market is down I can get 3 or 500 points lower and make money”? What points she is referring to? Thanking you in advance.
Selling large amounts of tail risk is not safe. If the market drops 30% in a day her account will most likely be negative. Those 3 delta puts would increase 100 fold easily.
The 3 delta puts would increase 100 fold. I agree. Question: Even if your account reflects that you are down a certain percentage; do you keep your premium sold if the short options expire out of the money?
@@andresalejandro9991 correct. But if that was the only position you held in the account it would not show a negative percentage
If the 'whole market' drops 30% in a day most option sellers are in the shit - and options buyers are having their '1 day a year' .... it's not reasonable to price your risk at a 30% drop in a day - that's a 1:10 years black swan type thing.
@@NotUpdated005 Yes agreed, once every 10-20 years a drop like that is to be expected. And the problem is, if you blow up your account on that day, all returns you made for decades are meaningless because at the end you made -100%, or worse.
What did the SEC do?
Wasn’t she fined by the SEC for cheating and stealing?
i just read the SEC report again. it sounds like the SEC came after Karen because she was reporting 1% profits on months where losses on the books (even if they could possibly be made whole later by rolling her losing positions) were far in excess of the limit for collecting her 20% of profits fee, but she was still collecting this fee (which amounted to about $370,000 a month) due to the questionable reporting of a 1% 'profit' and investors were not aware of these facts, nor the risks she was taking. i can understand why the judge did not even want Karen to speak. she was busted. there was nothing to say. it's kinda hard to figure out if she actually lost client money in the very end, or just lost the profits she made, or had no losses. another thing that may have caused concern at the SEC was one of her original interviews with Tastytrade. in the interview she admitted she had unrealized losses so large at one point. she was joking with her team that they might need to learn spanish (to flee to south america). plus she was already on the SEC's radar from earlier years when she was operating without a required license. i'm a Christian too but when it comes to finances rule #1 of fight club is never trust someone with your money just because they have the same religion you do
She either:
A) lied to her investors
B) lied to the IRS
Or, more than likely, both
Also, as you allude to, "rolling" is just a term traders use. To roll a position has to be closed. That's a realized gain/loss independent of what other positions are opened (ie. the new "rolled out" position).
Do you teach beginners of this method?
Funny she says you can't make as much money on the call side and have to be closer to the money. Yes this is because some gains are expected from the underlying itself.
Puts expose you to losses that calls dont.
That’s true if you are doing covered calls. She’s not doing covered calls though.
@@yyyyy785 yeah true, she isn't. I guess I should say I was meaning that the reason the premiums are different is for that reason. That she isn't taking advantage of it means she has to change up what she prefers to do.
But how many are not getting filled?
she was rolling over to the tune of 50 million in losses
So I'm doing way out of money short puts, even SEpt. The skew is so big in puts that worlds in 30's days to get 50%. But Karen never wants to give the money back so she don't want to go that far out. Skew is your friend right now.
When you refer to the market you mean the spy500? And What is the equivalent of points in terms of % or delta?
Wishes of health and love, god bless karen
Went through this video couple of times but never able to get what security she is trying to sell that high %OTM. this strategy looks like penny wise but pound foolish to me. Really wonder if this works. I was checking and to short one SPX, it needs 75K margin. Imagine, she did this during covid crash? Did she just roll all those she had? The margin would have been so different if the indexes dip...
there are many issues with what she is explaining....5% delta puts basically you dont get any premium with low volatility...waiting for the last day to expiration to roll then for 3 months...impossible!! you dont get any credit/premium but rather you would have to pay a debit....I am very suspicious she is making money trading that way....selling puts at that level of money management vs a strangle?? ...not managing your deltas and thetas...I can go on and on...she traded a bull market 2008-2016...everyone selling premium (puts) was making money....
Thank you. I thought this sounded like bs to me. She sounds like she's describing how she bakes a cake. LOL
What do you mean impossible to wait until the last day of expiration? And not getting a credit? Of course you'd get a credit buying with 1dte and selling 45 dte.
@@JackRainfield hah
Lol, tried baking a cake Jack? Ain't easy
@@bccsivxx-xxivvii is absolutely right. Theta decay.
Karen, I am giving you a kiss, a kiss of love that is! Because of this interview, I am reminded again that with can live in a capitalistic society yet have society humanistic values!
You are such a beautiful soul.
I would like to read the book. November 2021 is the publication day?
Picking up pennies in front of a steamroller.
When you have 600K to start, those pennies stack up
More like 20 dollar bills per contract!
I like and understand the point of the apple story, however she could've made a ton of money buying or just holding through that Steve Jobs dip. Apple is one of the few stocks where historically you would've made more money holding the stock over selling premium on it.
Why should we believe her?😊
Let me get this straight, she doesn’t seem to be that sophisticated, she doesn’t know much about Vix, she doesn’t pay attention to the IV metric, and yet she made money consistently? That’s some luck!
It's safe to say she knows and pays attention to a lot more than she's letting on. You don't turn 600k into 200 million getting lucky. She doesn't want to reveal exactly what she's doing. If she found an edge then she doesn't want everyone trying to play it. She found a way to exploit some part of the market, and if she reveals that method, the market, particularly the traders on the losing side, will make adjustments.
Hi Guys, in the beining of the video around 12 min mark, Karen talkes about playing a 2 day iron candor and does it off a ITM percentage and correpsends to the Delta. She says 2 or 3% delta. So what does that mean? How do you do the math on it?
Can someone explain with an explain how do you calcuate this and what vehcihle do u think she plays it on ? HOw can we try the same play out.
Hi Shilan. It means that she is selling options with just a 2-3% probability of expiring in the money, which would generally correspond to around a 2-3 Delta option. She is selling SPX options.
So if you don't have an options account at a broker then you wouldn't understand. But it is about200 or 300 points out. SPX closed at 4229. A 2 delta would mean selling a put at around 4020. you collect about $110. but you've have to use around $63000 in a margin account. But Karen trades in a portfolio margin account which would be less. Note she uses alot of margin and the ROI is not good. But it works and she tries not to give it back. very few traders will do what Karen does because low percentage on Return based on amount of money one would have to put up.
When Karen talks ITM she means probably of option going in the money.
@@grandadcrypto Thanks for quick reply. I acutally like this strategy as a "safer" play. I know you have to put a lot on the table but since the odds of winning are super super high. you can play weeklies on these strategy and make it susstaniable right? Key is how would you manage it when it goes against you? CAn you share some insight or WAYS to tackel that? I think in the video she mentioens she has to go out 3 months out to get credit and stay in the trade and I belive it only happend once. I like doing .05 delta on SPX for selling put credit spreads weekly. What are you thoughts on this strategy?
Yes Spx and my thought is she uses Tastyworks. Don’t think 3% probably in the money is equal to 3 delta. Usually it’s 2 times delta at least
I'm at the minute 17 and even though I am so interested in what Karen has to say, I feel like stop listening. The host is unbearable. He should interview himself next time.
charity begins at home
Karen sounds like she has a heart of gold. But, Dan, why don't you help her on her risk management plan? Rolling put credit spreads forward as a risk management plan? Yikes! What if we get a 2001-2003 market, she'll lose all her money! Her strategy only worked because she started at the beginning of a bull market in 2008/2009, she is not prepared for a bear market, IMO.
Love all your videos, by the way, but this made me scared for her future, hope I am wrong and there is more complexity to her risk management than she talked about.
karen's made millions of $$$ using her technique. And your assumption is just wrong. She's just started with credit spread and rolling them. You didn't listen she sells a put or a put spread against the roll. I'd not do the strategy but I understand what's Karen's doing. I used to sell put credit spreads a week out. Until I didn't. Karen accounts for a trade through its life.
I'm sure Karen and her team are smart enough to adjust to a bear market, whether it's lowering the PUT delta they choose (if a gradual bear market) or just exiting the trade altogether and taking a loss if it's a 2020 Corona type scenario. Perhaps they would sell more on the call side? I'm no expert, but I would imagine there's a lot more to it than this video.
@@grandadcrypto Around 18:10 Dan asks (paraphrased): "for your losers, how long do you kick the can down the road? Let's say the trade keeps going up, will you keep kicking the can or will you close it at some point?” She responds “I will answer that question when that happens to me” So, she has no plan because she is selling puts in a bull market and only had to roll her position forward once in March 2020, when the market quickly reversed.
She said she went through several crashes. She has had to roll out 3 months out a few times. And she also mentioned during the hedge fund days she would buy puts for insurance. She was aware of down pressure and why she purposely assumed the market was going to drop and even said she loved it she loved it when it did because she could then go even lower with her puts.
Anyone who trades spx knows that her strategy is extremely risky. Early 2022 crushed her for sure. She's lying about her profits.
Kar Invest
DIDNT SHE GET CAUGHT FOR FRAUD?
Yeah, it's amazing all these people are oblivious to that fact. It's surprising she's allowed back in the business.
She speaks of good strategies but her moral was bad
I don’t think it was fraud but it was more rolling over debts to the following month so that when monthly reports were sent out to investors it would portray that the losses were not that bad…probably unethical but not fraudulent …
@@JackRainfield I have been wondering the same. Does the need for her to "win" blind to the fact that she was covering up losses through rolling whilst still charging the fees. How is that okay? But because it seems as though her strategies work (because in a bull market rolling can work) are we willing to ignore the other? Quite amazing (and not good amazing).
@@ruthryan9173 However, if her fee structure says she gets paid on profit, and she sets up her trades to push the loss forward, so it looks like there wasn't a loss... that would be fraud, yes?
She behaves and talks like a PTSD patient.