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Trader - Made $41 Million Profit in 3 Years Option Trading (Karen the Supertrader)

3887 ratings | 1115280 views
Watch the 2014 1 hour interview here - http://goo.gl/9BbilO Karen the Supertrader went from her day-job as a CFO to an option trader and turned $100,000 in 2007 into $41 million by 2011. This is her story, as told by Karen herself with Tom Sosnoff on tastytrade. ***This video is an interview of a past tastytrade guest, Karen Bruton. We've become aware that she and her firm are currently under SEC investigation for her accounting and reporting practices. Karen is not affiliated with tastytrade in any way other than as a prior guest on our program, last appearing on the network in 2014. We at tastytrade believe in full and transparent disclosure by money managers and we continue to advocate on behalf of the retail trading community.*** ======== tastytrade.com ======== Finally a financial network for traders, built by traders. Hosted by Tom Sosnoff and Tony Battista tastytrade is a real financial network with 8 hours of live programming five days a week during market hours. Tune in and learn how to trade options successfully and make the most of your investments! https://goo.gl/OTv3Ez Subscribe to our YouTube channel: http://www.youtube.com/user/tastytrade1?sub_confirmation=1 Watch tastytrade LIVE daily Monday-Friday 7am-3pmCT: https://goo.gl/OTv3Ez Follow tastytrade on Twitter: https://twitter.com/tastytrade Become a fan of tastytrade on Facebook: https://www.facebook.com/tastytrade Follow tastytrade on LinkedIn: http://www.linkedin.com/company/tastytrade Follow tastytrade on Instagram: http://instagram.com/tastytrade Follow tastytrade on Pinterest: http://www.pinterest.com/tastytrade/
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Text Comments (1030)
Gerson Flores (1 month ago)
Please would you let lady tell us what’s up
Chuck A (2 months ago)
I don't think a year ever goes by where a handful of smaller traders don't at least double their accounts on the back of a few large bets that worked out. The video title made it seem like she generated an over 10,000% return in three years which would indeed be legendary. Doubling your account in three years is nice, but it isn't groundbreaking. If your surveyed the population of traders at the end of every year you would find in every year that some small percentage of traders doubled their accounts.
Buck Starchaser (2 months ago)
I appreciate the update disclaimer at the beginning of the video.
Vasile Stana (2 months ago)
is this lady still in prison for scamming people?
Kirk Sanderson (4 months ago)
It would have been to hear her speak more. 😒
ANNE MAKE-It-HAPPEN (5 months ago)
Deep State (5 months ago)
Another sad interviewer who is an endless attention seeker and can't shut up. It's the GUEST who is supposed to speak not the host.
Theodore Pagano (5 months ago)
Stop the small talk please get to the point
Hank Moody (6 months ago)
Didn't she get exposed as a fraud?
Leggo My Ego (8 days ago)
Yes she did.
rashida7777 (6 months ago)
He's in love with his own voice. [email protected] STFU!
xxx s (6 months ago)
Options are way more riskier than stocks due to time decay
Leggo My Ego (8 days ago)
The time decay is a risk if you're buying the options. This video is about selling the options, where the time decay (theta) is to the seller's benefit.
Option trading takes a lot of experience, not for amateurs or young traders to the market
Tom Gilligan (7 months ago)
It's funny. Back in 2002 when Karen here decided to pony up 20 grand for "trading education" all she was learning is the basics, which now, we can all get for free. And what has taken it's place, is today's "trading education" is literally teaching people how to make brokers money. Example, trade alot, short term profits, day trading, ect. Almost all "Educators" are attached to some brokerage firm, and are paid to bring new clients on board. They are teaching you all the wrong things. In fact, they are in bed with the broker. There is a huge conflict of interest in todays trading education market. If anyone out there is just starting out, I suggest learning about ALL markets, and DO NOT stick to just one. Alot of educators out there will tell you, oh you should only pick Forex, AND only trade one or two pairs. This is the worst advice you will ever get. Following this advice will ensure the broker makes maximum profit, not you. (If i only traded one currency pair, what happens when that pair loses its volatility and doesn't provide a profitable opportunity?) Same goes with Options, or Equities, or Futures, or Minis, or whatever. Learn them all. Then learn to follow where the money is. Where is the volitility the the highest at the current moment, come up with your OWN trade ideas and trade. The name of the game is long term profits. It's hard learning it all. Luckily Think Or Swim has done right by us little guys and offer the platform and paper trading for free. I am a beginner, with less than 25k capital, so I am pretty much swimming uphill already. I am looking for a mentor, so if anyone out there wants a protege who comes up with golden trade ideas. HMU.
Odale Mitchell (2 months ago)
Good advice , how has your progress been since then ?
jane red (7 months ago)
Let her talk! You know her and her story, we the audience do not.
Nonduality (7 months ago)
If you want to make money, tune out the noise -- and all financial "stuff" is 99% noise. Tune into the 1% that is important, which nobody can teach you. You have to discover it yourself. Bill Gates and Warren Buffett never went to a "How to get Rich" class. They were tuned into the 1%, which was the source of their riches. It's true for everyday successful traders, as well.
gino (8 months ago)
hi and thanks for all the very great videos ! i am trying to learn something on trading essentials.  But i am confused. I understand that stock picking is difficult _ 11:04 _  But i think that to foresee which stocks go up and which ones go down should be an even more challenging task.  I am sure i am missing something.
David Hur (8 months ago)
what were the 3 index that she uses to trade ?
D: (8 months ago)
What a pro.
Michael McLeod (8 months ago)
This is what I have wanted to learn. I hope it works for me.
Dam Ha (9 months ago)
Karen you are my hero! Thanks for the video this had boost my motivation 200 percent.
Peter B (1 year ago)
At 1st i was gonna say I didn't learn anything from this but I actually did. 1 thing: i need to invest in options clases and learn.
Alvin Brooke (1 year ago)
Reynolds martins (1 year ago)
Nicholas Edwards (1 year ago)
Dewi KURNIAWATI (1 year ago)
i learn alot. thank you so much!
Roger Cobbs (1 year ago)
I'm 7 month trader much to learn but I like when price get near bolinger bands gives me better direction and look at 4hr,1hr,5min,1min with 8 t line,with moving averages
Max daytrader (1 year ago)
very good advice, thanks
Darcy St Julian (1 year ago)
Matt DeLong (1 year ago)
She was investigated by the SEC for fraud for hiding $50m in losses while collecting huge fees from investors: https://www.thestreet.com/story/13593247/1/karen-the-supertrader-s-winning-strategy-relied-on-fraud-sec-alleges.html
covercalls88 (1 year ago)
Karen Burton method of trading was not bad, but as always involves risks. Where she got in trouble was hiding her losses by rolling them of to the next month and by doing that was able to collect her trading fees. What she was running was ponzi scheme. where those who pulled early received all of their money while those who entered at the end got very little. She actually got off quite easy, paying a $100,000 fine, admitting no wrong doing, of course her company could not have access to the money put in by what was left of the investors.
Dimitrios Desmos (1 year ago)
All I want , is to be able to provide for my children, you know?
Chan Choi (1 year ago)
Fraud 🤔🙈
Peter Karaverdian (1 year ago)
funny tastytrade doesn't comment on this page any longer
Peter Karaverdian (1 year ago)
that's why now she is facing jail time and fines
MasterSequence (4 months ago)
Well if you don't keep track of your trading and you're pulling in millions of dollars, you're already on the SEC's radar. You're now considered low hanging fruit to them and the IRS. She may be perfectly innocent and is simply under investigation, but she very well may also be guilty which just proves it doesn't matter who you are, someone is watching.
Lalchhanchhuaha Hmar (7 months ago)
Peter Karaverdian how is this real?
Mihai Faizenberg (1 year ago)
i Hate this guy!!!Does that mouth shut up sometime!!!I cant even see his eyes💩
Oscar Malisz (1 year ago)
A fraud
Lk T (1 year ago)
Dividends never make you rich , unless you are already rich.
Max (1 year ago)
lol she came out as a fraud.. a mini madoff lmaooo.. she bitch didnt even look at the delta of an option
rosenchrige tipsie (2 years ago)
Karen The Supertrader, is now Karen The Superfaker. What a sham...I mean shame.
interests10 (1 year ago)
+rosenchrige tipsie so is she a supertrader or wot
rosenchrige tipsie (1 year ago)
interests10 (1 year ago)
+rosenchrige tipsie ok. ?
rosenchrige tipsie (1 year ago)
interests10 actually, the last comment was a response to someone elses comment, thats why I wrote it, however it looks like they've already deleted it.
interests10 (1 year ago)
rosenchrige tipsie why?
Ernest Watson (2 years ago)
This dude speaks TOO DAMN MUCH....let HER TALK...You just ask the questions...jesus christ.
Ethan Carpenter (2 years ago)
No information! C'mon! What a joke!
Lincoln C Mitchell (2 years ago)
"Supertrader" love that title
Internet Crusader (2 years ago)
if a person starts a fund with a memo that says u agree to give me all ur money and the investors agreed to it this is not fraud this is stupidity
Internet Crusader (2 years ago)
what she did is not really fraud this is more about people who dont understand options all of the incentive structures were written in the funds memo so buyer beware now the incentive structure does create a ponzi scheme like situation but its clearly stated and not hidden what she did was she sold options and got the investors to agree to a ridiculous incentive structure where she got paid fees for the options premiums as realized gains and even if the options went into the money that was considered unrealized losses that did not figure in the incentive payout this is a stupid structure but it was stated and agreed upon so when the options went into the money she started rolling them which is quite standard then in the memo the investor agreed that redemptions from the fund would be paid without considering the unrealized losses which was great if u were the first ones out and horrible if u stayed in and took the losses of previous investors what this did was made it appear like the redeeming investors received their full principal and realized options premiums makings this an attractive investment for new investors new investors then came in to share in the unrealized losses to make a ponzi scheme to replace the ones getting out if this was only done secretly then she would be guilty of fraud but all of this was agreed upon and written in the memo this is more about bitter stupid investors who bought into an agreement they did not understand and now want the government to bail them out and punish the person who exploited their stupidity
SiSiSiUSA (2 years ago)
Would love to listen to someone who loss a lot of money. Can you do that because its a bit strange to listen to all these success without failure. Sometimes when things are too good to be true its sometimes is not true. So please upload something that you know who loss a lot of money. Im very curious what they will say..
sooofunny37 (5 months ago)
Ashfaq Sheikh (1 year ago)
I endorse your thought.
Yashvir Dalaya (2 years ago)
There's a book called What I learned losing a million dollars. It's about a commodities trader who learns hard lessons blowing up his account. Great read.
Gustav Sjökvist (2 years ago)
WSB took me here
alessa (2 years ago)
احد يترجم وش تقول
Michael Shift (2 years ago)
I bet she wishes that she just stuck with managing her own money. She's got a very strong trading system and manages risk well. It's only when she got into managing other people's money that she became greedy.
Vikas Jain (2 years ago)
Umut Umut (2 years ago)
thank you so much for promoting her FRAUD. She had no record of her trades when she was on air
David W. Johnson (2 years ago)
They raised money.............then grew the account. Growing a small account into a very large account is impressive Growing a large account into a larger account is normal .
Maria das Santos (2 years ago)
Sadly no one seems to be interested in the Pharmacist from Bootle who made in excess £80,000,000 after onerous taxes in the UK.
Steve Song (2 years ago)
This host drives me crazy. Just spit it out!!
Rohit S (2 years ago)
Most of the time the host is talking. I want to hear the super trader talk not the host.
Hawken Fox (1 year ago)
The other half of the world is awake. You can trade there ... or the crypto currency is 24/7 ... cheers.
doan (1 year ago)
probably futures trading or forex
ToStand (1 year ago)
same here, i was thinking "shut up please and let her talk ......"
E SIALOI (1 year ago)
+eddyvideostar Thanks Eddie
eddyvideostar (1 year ago)
Sharky: Yes: If your only concern is to balance your risk as a seesaw and realize what you would derive from this.
Nate (2 years ago)
16:01 "My philosophy is once you give me the money you're not getting it back" Couldn't be more true. SEC accused her of defrauding her investors: https://www.thestreet.com/story/13593247/1/karen-the-supertrader-s-winning-strategy-relied-on-fraud-sec-alleges.html
j.d. r. (2 years ago)
"Our strategy just kept getting simpler and simpler." Translation: We learned we could just rip people off and not make any money at all. As is the case for most "investment gurus" online.
Darren childs (2 years ago)
Not such a Supertrader after all. Carrying the loses so she carry on collecting her incentive. Netting over $7M in fees it seems she was not entitled to (allegedly) Check it out https://www.sec.gov/litigation/complaints/2016/comp-pr2016-98.pdf
AUKER CONSULTING (2 years ago)
Randall B- This is like a witch hunt by SEC/FINRA. I, was an award winning stock-broker/manager for 33 successful years, was physically attacked by the new manager. I did the company a favor by taking the manager job (interim basis) against my desires and quit 8 months later the interim job of branch manager to help the company. Later I was the physically assaulted by the "then newest" branch manager and had to go to the emergence room. After terminated for no reasonable cause, arbitrators expunged the three charges with little details, because they had no basis. I had a perfect U4 document on file with not one complaint before this, for 33 years. All charges were erased and the arbitrators added the following quote "because of the defamatory language used by my BD firm." By then I had lost my business and was expected (I guess to start over in the brokerage business which I could not do physically, and emotionally. I had to have my very vague counter charge. I went on disability for many reasons, and also won my Workers Comp case, which my employer said I didn't deserve in the beginning. Eventually common sense prevailed, but I still never received any money for my charges including the loss of my business.
gbvoul (2 years ago)
Sam Kinison wannabe?
Cameron M (2 years ago)
I'd be curious to see if her short options actually went In The Money during the "market crash" in August '15. Obviously when that happened, she had to stay mechanical and roll down and out her Puts, and on paper, that would be taking a loss. Her whole strategy is based on this. But based on the fact that the market rebounded so quickly, she would have never been at risk of losing the trade at expiration. I would love to see the data on this.
Jessi O (2 years ago)
She did generate profits. it was the order in which she was realizing these profit and losses. She "timed" the realization of profits and losses to guarantee that she gets her fees. You would still need to be a GENUIS to take trades and arrange them so carefully
Jessi O (2 years ago)
I read the document , basically a bitter rich whiny investor complaining about her fees . So what... she tried to make sure she collected her fees. At the end of the day , she generates profits for these ungrateful rich investors.
MMG-6 (2 years ago)
What is option trading known as in UK?
Vinoth M (2 years ago)
Its called Spread Betting in UK with minor differences
Leggo My Ego (2 years ago)
It's called the same thing, but most likely more regulated/resticted given it's the UK. http://www.ig.com/uk/options-trading
Don O (2 years ago)
This is what happens when you just aim for the big buck while ignoring risk, soon it will caught up with you and in Karen's case, it was the SEC.
Ravi Swamy (2 years ago)
SEC suspects Ponzi scheme on 1June, 2016
HumbleTrader001 (2 years ago)
Apparently, the S.E.C has reached out to her! :) Better late than never! :)
Mark Hoffman (2 years ago)
Is Karen Bruton headed to jail?
Vinnie Brown (2 years ago)
Alex Salnikov (2 years ago)
HumbleTrader001 (2 years ago)
From TheStreet dot com - "It wasn't innovative strategy behind Karen the SuperTrader's consistent returns after all, the U.S. Securities and Exchange Commission says, but a much more tried-and-true technique: fraud."
TheDrumwhizard (2 years ago)
Well it looks like Karen the "supertrader" is not so super after all...SEC is on her http://macro-ops.com/karen-the-supertrader-goes-rogue/
Nishant Gandhi (2 years ago)
HedgeFundOfOne (2 years ago)
Pending resolution: https://www.sec.gov/litigation/complaints/2016/comp-pr2016-98.pdf
bangem andleavem (2 years ago)
jerry Brown (2 years ago)
Eugene (2 years ago)
Tom Sosnoff really needs to shut the fuck up and let Karen talk. The show is about gaining insights from Karen, and not his rambling recaps of what she said (or what he thinks she just said)!
SoFaKinG Co_OL (2 years ago)
Daaaaamn 100k for 5yrs & they make shit for her. Yup they played her lol
Rocky B (2 years ago)
Is this show trying to replicate Howard Stern show?
adrian petrov (1 year ago)
+trakba learn how to trade professionally and mAke profitable earnings e-mail [email protected]
trakba (2 years ago)
lot lot lot lot lot lot lot lot lot lot lot lot of pointless usage of mouth, time and energy
Bujor Silvia (2 years ago)
Mear place sa imi inbunatatesc veata , mie si copiilor meii am un salar forte mic ,si ma descurc greu , multumesc Brocherilor ce ofera aceasta opurtunita si la altii , Multumesc
Paul Pena (2 years ago)
Their excitement is really juvenile. Can't they see what's going on? Her strategy is basically "I want to make lots of money before I'm wiped out". There are many people who try this wide strangle approach and most eventually eat it. Of course the law of probabilities says there will be one or two that don't get nailed. And , in this case, her name is Karen. But he says "I wish there were more like you". But the law of probabilities says THERE CAN"T BE MORE LIKE HER. I think they believe she's found a magical way to hedge risk. Yep, people at Barings thought the same thing.
Paul Pena (2 years ago)
The link you're looking for is https://www.thestreet.com/story/13593247/1/karen-the-supertrader-s-winning-strategy-relied-on-fraud-sec-alleges.html
Leggo My Ego (2 years ago)
+HumbleTrader001 link? Nevermind just found it: https://www.thestreet.com/story/13593247/1/karen-the-supertrader-s-winning-strategy-relied-on-fraud-sec-alleges.html
HumbleTrader001 (2 years ago)
Funny how she turned out to allegedly be a fraud, according to TheStreet article, and S.E.C. is after her.
Leggo My Ego (2 years ago)
They very much recognize the risk that she is taking (that's why they have no money with her). Any significant black swan will wipe her out, and they know that.
Bhinesh Patel (2 years ago)
Can Tastytrade publish her returns please....thanks.
tadesse zewdu (2 years ago)
this guy... we couldnt listen because that guy is talking alone for nothing. ..
Trance Mine-R (2 years ago)
Ey yooh Hat guy!! Shut The fuck up and give Karen some Respek
bull market (2 years ago)
learn to Fucken listen, we're trying to get the most vitale info not how you feel and shit
Tom Conrad (2 years ago)
TheGrasspond (2 years ago)
Fascinating listening to her talk.  If only hat guy would shut his mouth.
G. G. Rebimik (2 years ago)
Love Karen!!!
Jacob Smith (2 years ago)
Mark Furrer (2 years ago)
these are thieves who raped america and took advantage of the stupidity of america … its easy to steel candy from a baby .. its another thing to bragg about it .
Matthew Nunez (2 years ago)
Jean Palacios (2 years ago)
So does she still have her 41million or did she go nuts with leverage and give it all back to the market?
LOL what profit.
Jessi O (2 years ago)
i suggest you learn to read.
Don O (2 years ago)
She's never been a "bitter rich whiny investor", and shes actually did not generated profits for "these ungrateful rich investors". You seem to hate money and angry at the people you don't even know. I suggest you change the way you look at wealth or you will never have one yourself.
Jessi O (2 years ago)
I read the document , basically a bitter rich whiny investor complaining about her fees . So what... she tried to make sure she collected her fees. At the end of the day , she generates profits for these ungrateful rich investors
lol I never followed her but I am not surprised all these fly by nights I turn 1000 into 40 million people selling a system are always fishy.
AnGuoba (2 years ago)
Does Miss Karen offer apprenticeship to the financially poor person like me. I will serve her coffee, I will run her errands, I will was her car, I will drive her to her., I will walk her dog if she has one, all for free for her mentorship.
Brett REYNOLDS (2 years ago)
I don't believe she's a trader really..and if she is...someone else put the trades on for her..and she just put the money in..!!//
Khufu AmenRa (2 years ago)
Next time let the pretty black girl speak more dude....
Gapeh0rn (2 years ago)
Cant take my eyes off the black lady's hands
Roman R (2 years ago)
well i guess its not that hard making 40 million from a what? 100 million account or so. but i guess its also not that easy. but its not like she made 41 million from 100k or something.
Foreign Creations (1 year ago)
When working with an account that size it's more complicated
Carter Stevens (2 years ago)
+Roman Randhahn lol... you are crazy if you think making 40m from an 80m dollar account is comparable to making 4000 from an 8000 dollar account.
Karla Bailer (2 years ago)
I quit....the dude in the hat won't let her explain HER story...okay...i'm over it.
Soloman1001 (8 months ago)
$84 million.
Soloman1001 (8 months ago)
Just what i was going to say.
Leggo My Ego (2 years ago)
+AustinZ06 TOS was sold for 600 million, Tom didn't own the whole thing.
Austin Suzak (2 years ago)
+Karla Bailer That dude is worth $600 million lol
Javier Ramirez (2 years ago)
sounds more like turned $40 million into $80 million not $100,000 into $41 million 13:15
David Johnson (2 years ago)
I would not mess around with no more than £100 in the stock market hoping to make £41,000 in 10 years to come.

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