Wondering if Karen the Supertrader (Karen Bruton) from Tastytrade is a fraud? Watch my video about Karen the Supertrader below and find out what you can learn from her.
Karen Bruton's Original Claims
Bruton claimed that she started trading options seriously in 2007, around the same time she retired from an executive position with a limestone company.
Her strategies reportedly earned $50,000 in her first year of trading.
She used several strategies to lower the risk of her options strategies, including selling calls and puts 95% out of the money and selling contracts at 56 days to expiration.
By following these options trading strategies, Bruton claimed she did not have a single losing month in 2013
However, in reality, Karen Bruton, Karen the Supertrader, was a fraud. Additionally, she was charged and pled guilty to charges against her. You can read the document here.
Karen Bruton's claims of being profitable on Tastytrade were FALSE. She traded too large and sustained massive losses.
According to the lawsuit:
1) She lost $50 MILLION of client money - more information here (the SEC actually claimed that she suffered paper losses of $100 million).
2) She has been barred from the industry
3) She paid a $1.5 million dollar fine
4) She charged illegal fees and swindled her followers
Additionally, from watching her YouTube interviews, she can barely string together a coherent sentence.
People may say, "she's old", but the reality is that she was running a scam. She swindled her investors and was a losing trader.
In my opinion, Karen Bruton, Hope Advisors and Hope Investments was a complete scam. From watching hours of Karen Bruton's interviews, I don't believe she understands basic options trading.
My Karen Bruton Review: Scam
The story of Karen Bruton serves as a stark reminder of the importance of transparency and ethical practices in trading. It underscores the need for investors to be cautious and do their due diligence before entrusting their money to anyone claiming to have a foolproof strategy for quick and consistent returns.
Karen ultimately settled with the government and paid a large fine. In her interview, she falsely claimed that she wasn't in a position to fight the case. But, the reality is that fighting this case would have cost her, at most, $1 million.
So why would she agree to pay $1.5MM, agree to be banned from the industry and agree to have her reputation tarnished if she was truly legitimate?
Tastylive and Tom Sosnoff used Karen Bruton to market their education and trading platform.
Tastylive likely used Karen Bruton as an "icon of what's possible", but, in reality, Karen Bruton lost $50 million - $100 million of client money and was running a scam.
Frequently Asked Questions (FAQs)
Is Karen Bruton a scam artist?
Yes, she is. She was charged by the SEC and pled guilty. She also lost $50 million - $100 million of client money and charged success fees despite losing money.
What mistakes did Karen Bruton make?
From a trading perspective, she traded too large. I believe she lost the majority of her money by selling calls.
Is Karen the Supertrader a fraud?
Yes, she lost $50 million - $100 million of client money, charged illegal success fees to her investors and paid a $1.5MM fine (in addition to pleading guilty).
Why did Tastylive promote Karen the Supertrader?
They used her for marketing to increase awareness of their education platform (Tastylive) and brokerage (Tastytrade).
Karen Bruton trading strategy?
She sold out puts and calls, traded too large, and lost $50 million - $100 million of client money. You don't want to copy her strategy, unless you want to lose money.
Karen the Supertrade review?
Why did Karen Bruton settle?
Karen stated here that she has exhausted her financial resources and was unable to pay her defense.
This is a lie. Litigating her case would have cost $500,000 - $1,000,000, but instead she chose to plead guilty and pay a $1.5MM fine?
No, she pled guilty because she was guilty.
If the government case was weak, she could have actually put together a Motion to Dismiss, which would have cost about $20,000 and had the entire case dismissed.
Karen Bruton or Karen the Supertrader Net Worth
Karen Bruton, "Karen the Supertrader" likely has a net worth of under $500,000