Naked calls and puts can have their place in your portfolio but for the average retail trader with 0K or less in their account, it would be very difficult to replicate Karen.
Bollinger bands are an indicator that shows 2-standard deviations around a 20-day moving average.
By using this tool, Karen can find strike prices that are unlikely to be reached, to place trades that are approximately 56 days to expiration.
Karen strategy is very risky as implied volatility can rise and markets can accelerate wiping out huge amounts of capital generating significant margin calls.
A margin call is an amount of capital that will be required by the exchange to hold onto current positions.
Remember “the market can stay irrational longer than you can stay solvent”.