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Chat With Traders

248: David Sun - Systematic Options Trading - Minimize Risk, Optimize Edge

Chat With Traders

Tessa Dao

Education, Business, Investing

4.92.3K Ratings

🗓️ 22 November 2022

⏱️ 67 minutes

🧾️ Download transcript

Summary

From Electrical Engineer to Hedge Fund Manager, David Sun, previously on TastyTrade as a Rising Star guest went on to start his first hedge fund in 2018, and then went on to add a second one in 2021. Learn about one of David's 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! Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

I think that the holidays feel like frozen noses. I love walking with the dog for long periods of time.

0:10.0

Hopefully it's snowing and you've got to wrap up warm. So I think a frozen nose is a sweaty armpit

0:15.0

because your wrapped up so warm but then you're climbing hamps and heath and you get to the top

0:20.0

and you're like, and then you can see the breath but then your nose is still freezing to touch.

0:25.0

Join in every sip with red carp snown back at Starbucks.

0:30.0

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0:53.0

Follow the PWC UK Cybersecurity Podcast on Spotify.

0:58.0

Markets, speculation and risk. This is the Chatwood Traders Podcast.

1:07.0

We're on episode 248 and I'm Ian, host of Chatwood Traders.

1:15.0

And we're going to mix things up just a little bit today where Tessa will be interviewing our guest David Sun.

1:21.0

David's background is an electrical engineering but he got turned on to options trading over the years

1:27.0

and appeared on the tasty trade show as a rising star guest with a talent for options trading.

1:34.0

He then went on to start his first hedge fund in 2018 and then added a second one in 2021.

1:41.0

In this interview, Tessa discusses an overview of David's systematic options trading.

1:46.0

It has to do with a multi-layer approach using stop losses, which is not common in options trading and even advised against.

1:54.0

And how David takes advantage of high implied volatility, not in the way most option traders would think, and his take on managing the wind size to loss size ratio.

2:05.0

This episode assumes that you do have some basic level of options trading knowledge.

2:10.0

So options traders, I think you're in for a treat and may come away with some actionable ideas.

2:16.0

By the way, David will make an appearance inside the Chatwood Traders community where I will dive deeper with David into the mechanics of his strategy.

...

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