Comments on: Karen The Supertrader http://www.optionstradingiq.com/karen-the-supertrader/ Options Trading IQ - Options trading tutorials focusing on volatility, iron condors, credit spreads and other option spread strategies. Mon, 24 Mar 2014 03:21:00 +0000 hourly 1 http://wordpress.org/?v=3.9 By: Options Trading IQhttp://www.optionstradingiq.com/karen-the-supertrader/#comment-2496 Thu, 13 Mar 2014 19:39:00 +0000 http://www.optionstradingiq.com/karen-the-supertrader/#comment-2496 Thanks Erik, great explanation!

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By: Erik Trofatterhttp://www.optionstradingiq.com/karen-the-supertrader/#comment-2495 Thu, 13 Mar 2014 04:27:00 +0000 http://www.optionstradingiq.com/karen-the-supertrader/#comment-2495 Portfolio margin is a reduced margin allowance set federally as a minimum of 100,000 account balance. However Brokers can have more stringent requirements. For instance, TD Ameritrade’s PM requirements start at 125,000, where Interactive brokers start at the FINRA minimum of 100,00. Portfolio Margin is a more leveraged margin calculation that looks at the overall potential risk of an entire portfolio and assigns margin per position accordingly. Portfolio Margin can allow a trader to have up to 6/1 leverage over a trader only using reg-t Margin. The more money you have, the better your margin.

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By: Jonny Phunhttp://www.optionstradingiq.com/karen-the-supertrader/#comment-2494 Thu, 13 Mar 2014 04:22:00 +0000 http://www.optionstradingiq.com/karen-the-supertrader/#comment-2494 Can you please explain what Portfolio Margin? Thanks.

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By: Options Trading IQhttp://www.optionstradingiq.com/karen-the-supertrader/#comment-2463 Mon, 13 Jan 2014 01:15:00 +0000 http://www.optionstradingiq.com/karen-the-supertrader/#comment-2463 Hi Erik,

Thanks for letting us know about her return appearance on Tasty Trade.

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By: Erik Trofatterhttp://www.optionstradingiq.com/karen-the-supertrader/#comment-2460 Fri, 10 Jan 2014 20:45:00 +0000 http://www.optionstradingiq.com/karen-the-supertrader/#comment-2460 Karen is on Portfolio Margin so her reduction in BPR is much much less, almost a third of that amount. My fund trades this strategy as well, however, I only risk 10% of my account on this strategy because as the positions move on you, the margin requirement expands, sometimes 2 or 3 times. Karen will be back on Tasty Trade February 11th for a live show at night. Should be a really interesting show being that Tom will finally be breaking into the “how she does it”

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By: Options Trading IQhttp://www.optionstradingiq.com/karen-the-supertrader/#comment-2455 Tue, 07 Jan 2014 13:35:00 +0000 http://www.optionstradingiq.com/karen-the-supertrader/#comment-2455 Sorry, I’m not aware of her website. She may not have one as she is a private trader.

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By: Txsckbhttp://www.optionstradingiq.com/karen-the-supertrader/#comment-2452 Sun, 05 Jan 2014 21:25:00 +0000 http://www.optionstradingiq.com/karen-the-supertrader/#comment-2452 Yes, she stated that she “tricks” herself into thinking the market is already 100 points down and then takes her strike price down an additional 10-12%

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By: Richardhttp://www.optionstradingiq.com/karen-the-supertrader/#comment-2383 Tue, 08 Oct 2013 14:06:00 +0000 http://www.optionstradingiq.com/karen-the-supertrader/#comment-2383 link me to her website, i wish to visit it

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By: Options Trading IQhttp://www.optionstradingiq.com/karen-the-supertrader/#comment-2359 Tue, 17 Sep 2013 18:03:00 +0000 http://www.optionstradingiq.com/karen-the-supertrader/#comment-2359 Hi Dniel,

Thanks for your comment.

Karen trades what is sometimes referred to as a “mean reversion” strategy. After a sustained up move, the likely future direction is down and vice versa. She probably doesn’t sell calls on every up day or puts on every down down. Rather, she probably waits for an extended move in one direction before placing her trades.

If a stock or index moves too far away from it’s moving average (50 day, 200 day etc.), chance are that it will eventually revert to the mean, or long-term average.

Buying calls on up moves and buying puts on down moves as you mentioned would be a trend following strategy.

Both are valid ways to trade and each has it’s own advantages and disadvantages.

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By: dnielhttp://www.optionstradingiq.com/karen-the-supertrader/#comment-2357 Tue, 17 Sep 2013 02:03:00 +0000 http://www.optionstradingiq.com/karen-the-supertrader/#comment-2357 “sell naked calls on up moves” and “sell naked puts on down moves” I don’t get this.. aren’t you supposed to “buy calls on up moves” or “buy puts on down moves” to make money??? even theta decay would not catch up on a moving market in either direction in typical 30 – 50 days??

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