Explained! Systematic Options Strategies with David Sun - David Sun

Maximizing Returns and Minimizing Volatility: Exploring Option Trading Strategies With David Sun

In this comprehensive episode, host Adam Butler of #ResolveRiffs talks with David Sun, a seasoned private fund manager, about optimizing premium contraction and expansion to forecast market trends. They also discuss the importance of diversification, as well as specific Options strategies that can help achieve a favorable risk-reward ratio while keeping potential losses in check. The conversation further explores interesting concepts like 'Return Stacking' and the usage of hedging techniques. David explains his journey from being a retail investor to launching his own private Options-based hedge fund and shares valuable insights from his broad experience trading Options, benefits of thinking in risk space, learning curves, and his views on contemporary market risks.

00:48 Guest Introduction: David Sun, Private Fund Manager
02:50 David's Journey into Options Trading
04:28 Launching the First Private Options-Based Hedge Fund
05:50 The Birth of the Second Fund: Zero DTE Strategies
08:37 Exploring Zero DTE Strategies
10:05 Risk Management in Options Trading
16:14 The Impact of Dealer Positioning on Trading
25:17 The Art of Constructing Risk Profiles in Options Trading
28:49 Understanding the Risks of Position Sizing
29:20 Why We Don't Sell the Tails
29:44 Balancing Premium Selling and Risk Management
30:19 The Concept of Premium Capture Rate
31:13 Maximizing Expectancy in Trading
31:25 Our Best Work Outside of This Podcast
32:07 Exploring Traditional Option Strategies
32:32 The Importance of Risk Management in Option Selling
36:52 The Role of Backtesting in Investment Strategies
38:45 The Impact of Non-stationarity in Finance
39:30 The Benefits of Diversification in Investment
41:18 The Power of Trend Following
58:17 The Future of Our Investment Funds
59:27 The Importance of Retail Education in Investment

This is “ReSolve Riffs” – published on YouTube every Friday afternoon to debate the most relevant investment topics of the day, hosted by Adam Butler, Mike Philbrick and Rodrigo Gordillo of ReSolve Global* and Richard Laterman of ReSolve Asset Management.
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ADAPTIVE STRATEGIES DESIGNED TO ELEVATE TRADITIONAL PORTFOLIOS

ReSolve is an alternative asset manager which focuses on providing cutting-edge, globally-diversified and systematic investment strategies that are non-correlated to traditional portfolios. We manage private and public funds as well as bespoke separately managed accounts for investors seeking the potential to smooth out portfolio returns.

Check out our Strategies pages:

RESOLVE EVOLUTION MULTI-STRATEGY FUTURES PROGRAM: pure alpha designed to zig when traditional portfolio’s zag. Our flagship Systematic Global Macro program aims to have zero long-term correlation to global equities and bonds at a similar volatility to global equity markets. https://investresolve.com/strategies/...

ADAPTIVE ASSET ALLOCATION FUTURES PROGRAM: Combining our best beta and best alpha strategies to create an all-terrain portfolio.
https://investresolve.com/strategies/...

RETURN STACKING FOR IDLE MONEY: Putting your lazy money to work. Bespoke mandates that utilize idle capital to stack ReSolve’s diversifying strategies on top. https://investresolve.com/strategies/

RETURN STACKED ETFs: Unlocking the benefits of diversification by aiming to layer one investment return on top of another, achieving more than $1 of exposure for each $1 invested
https://investresolve.com/strategies/...

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Blog Articles: https://investresolve.com/blog/
Featured Research Papers: https://investresolve.com/research/
Webinars: https://investresolve.com/media-center/
Podcasts: https://investresolve.com/podcasts/
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*ReSolve Global refers to ReSolve Asset Management SEZC (Cayman) which is registered with the Commodity Futures Trading Commission as a commodity trading advisor and commodity pool operator. This registration is administered through the National Futures Association ("NFA"). Further, ReSolve Global is a registered person with the Cayman Islands Monetary Authority.