Systematic Options Trading - Minimizing Risk Exposure & Optimizing Edge · David Sun

EP 248 | Systematic Options Trading - Minimizing Risk Exposure & Optimizing Edge | David Sun

David Sun, an Electrical Engineer turned Options Trader, turned Hedge Fund Manager generously shares one of his Hedge Fund strategies using options. He appeared as a Rising Star guest on the TastyTrade show and on the Flirting With Models podcast. He went on to start his first hedge fund in 2018, and then went on to add a second one in 2021.

We get an inside look at one of David’s Hedge Fund strategies concepts applying a systematic approach to Options trading. It has to do with these 3 things; stop losses (which is not common in options trading), how he takes advantage of high implied volatility (IV) - but not in the way most options traders would think, and his approach on managing the win size: loss size ratio, all to manage risk exposure and optimize edge..

Looking for actionable ideas to explore? Then this is a must-listen to episode!

Topics & Timestamps:
Please note: Exact times will vary depending on current ads.

00:00:00 - Background and early experience
00:13:10 - Compare and Contrast to Kris Sidial’s Hedge Fund strategy
00:16:25 - David Sun’s Hedge Funds
00:22:00 - Stop Losses, Win Size to Loss Size Ratio, Expectancy Hacking
00:24:00 - Premium Capture Rate
00:30:00 - Implied Volatility
00:52:00 - Misconceptions of Options Trading

See more show notes here:
https://chatwithtraders.com/248

Links & Resources:
Twitter: @TheTradeBuster
The Trade Busters Podcast: https://open.spotify.com/show/3g966BSYdPvLPNkiQzZsJa
The Trade Busters Trading Page: https://www.thetradebusters.com
tastytrade Rising Star interview: https://www.tastytrade.com/shows/rising-stars/episodes/meet-david-s-tastytrade-s-newest-rising-star-11-22-2019

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DISCLAIMER:
Trading in the financial markets involves a risk of loss. Podcast episodes and other content produced by Chat With Traders are for informational or educational purposes only and do not constitute trading or investment recommendations or advice.

#options #systematictrading #riskmanagement #stocks #hedgefund