From electrical engineers to hedge fund managers, David Sun walks you through one hedge fund strategy using options. He has appeared as his Rising Star guest on the TastyTrade show and the Flirting With Models podcast. Blessed with options trading talent, he launched his first hedge fund in 2018 and added his second hedge fund in 2021.
Let’s take a closer look at one of David’s hedge fund strategy concepts that applies a systematic approach to options trading. It has to do with these three things. Stop Loss (not common in options trading), high implied how he utilizes volatility (IV) – but most options he is not the way traders think. Manage your risk exposure and optimize your edge.
Looking for practical ideas to explore? Here’s a must-listen episode!
Trading in financial markets involves the 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.
Topic and Timestamp:
- 00:00:00 Background and early experience
- 00:13:10 Contrast with Kris Sidial’s Hedge Fund Strategy
- 00:16:25 David Sun’s Hedge Fund
- 00:22:00 Stop Loss, Win/Lose Size Ratio, Expected Hacking
- 00:24:00 Premium catch rate
- 00:30:00 Implied Volatility
- 00:52:00 Options trading misconceptions