<p>In this episode, Jeff Malec sits down with David Sun, an entrepreneur, trader, and fund manager with a unique journey into the world of options trading and alternative investments. David shares his unconventional path, starting as a retail trader experimenting with options strategies, particularly selling puts, before transitioning to professional fund management. He discusses the challenges and lessons learned as he navigated various market regimes, including the 2018 and 2020 downturns. The conversation delves into David's systematic approach to options trading, focusing on risk management techniques like stop losses and hedging strategies. He explains his evolution from primarily selling options to incorporating more option buying, as well as his exploration of zero days to expiration (zero DTE) options and the unique risks and considerations involved. David also shares insights into the role of behavioral biases in the markets and how he leverages data-driven research to develop robust trading strategies. He reflects on the increasing accessibility of trading tools and resources, and the valuable contributions of the retail trading community.</p> <p><br /></p> <p>Chapters:</p> <p>00:00-02:08=Intro 02:09-09:21= Engineer to Retail trader to Fund manager – an unconventional path</p> <p>09:22-18:21= Don’t quit your day job &amp; Option-based fund management</p> <p>18:22-26:09= Mitigating gamma risk in short-dated options &amp; Focusing on the win rate</p> <p>26:10-35:47= Exploring behavioral biases and combining systematic &amp; discretionary styles</p> <p>35:48-45:39= Democratizing trading: Hedging, Volatility, Trend, and Broken butterflies</p> <p>45:40-57:11= Sharing knowledge and resources: The Trade Busters podcast &amp; bridging the gap</p> <p>57:12-01:07:18= Naïve to Trends, momentum, edge? &amp; the human behavioral bias</p> <p><br /></p> <p>From the episode:</p> <p><a href="https://www.amazon.com/Fooled-Randomness-Hidden-Markets-Incerto/dp/1400067936/ref=asc_df_1400067936/?tag=hyprod-20&amp;linkCode=df0&amp;hvadid=693656043032&amp;hvpos=&amp;hvnetw=g&amp;hvrand=16604301098207740820&amp;hvpone=&amp;hvptwo=&amp;hvqmt=&amp;hvdev=c&amp;hvdvcmdl=&amp;hvlocint=&amp;hvlocphy=9021664&amp;hvtargid=pla-432994518689&amp;psc=1&amp;mcid=f03000b4e9713ce7bdaeefe763bc45da&amp;tag=hyprod-20&amp;linkCode=df0&amp;hvadid=693656043032&amp;hvpos=&amp;hvnetw=g&amp;hvrand=16604301098207740820&amp;hvpone=&amp;hvptwo=&amp;hvqmt=&amp;hvdev=c&amp;hvdvcmdl=&amp;hvlocint=&amp;hvlocphy=9021664&amp;hvtargid=pla-432994518689&amp;psc=1" target="_blank" rel="ugc noopener noreferrer">Fooled by Randomness (Book)</a></p> <p><a href="https://www.rcmalternatives.com/2023/03/wtf-will-0dte-cause-gammageddon-with-mike-green-and-craig-peterson/" target="_blank" rel="ugc noopener noreferrer">The Derivative episode: WTF?! Will 0DTE Cause Gammageddon? With Mike Green and Craig Peterson</a></p> <p><a href="https://www.smartless.com/episodes" target="_blank" rel="ugc noopener noreferrer">Smartless podcast</a></p> <p> </p> <p>Follow Along:</p> <p>Follow along with David on Twitter <a href="https://x.com/TheTradeBuster" target="_blank" rel="ugc noopener noreferrer">@TheTradeBuster</a> and also be sure to check out <a href="https://podcasts.apple.com/us/podcast/the-trade-busters/id1576884492" target="_blank" rel="ugc noopener noreferrer">The Trade Busters podcast</a></p> <p><br /></p> <p>Don't forget to subscribe to <a href="https://www.rcmalternatives.com/the-derivative-podcast/" target="_blank" rel="ugc noopener noreferrer">⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠The Derivative⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠</a>, follow us on Twitter at <a href="https://twitter.com/rcmAlts" target="_blank" rel="ugc noopener noreferrer">⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠@rcmAlts⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠</a> and our host Jeff at <a href="https://twitter.com/AttainCap2" target="_blank" rel="ugc noopener noreferrer">⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠@AttainCap2⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠</a>, or <a href="https://www.linkedin.com/company/rcm-asset-management/" target="_blank" rel="ugc noopener noreferrer">⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠LinkedIn⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠</a> , and <a href="https://www.facebook.com/RCMAlternatives/" target="_blank" rel="ugc noopener noreferrer">⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Facebook⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠</a>, and <a href="https://info.rcmalternatives.com/get-our-blog-alternatives" target="_blank" rel="ugc noopener noreferrer">⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠sign-up for our blog digest⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠</a>.</p> <p>Disclaimer: This podcast is provided for informational purposes only and should not be relied upon as legal, business, or tax advice. All opinions expressed by podcast participants are solely their own opinions and do not necessarily reflect the opinions of RCM Alternatives, their affiliates, or companies featured. Due to industry regulations, participants on this podcast are instructed not to make specific trade recommendations, nor reference past or potential profits. And listeners are reminded that managed futures, commodity trading, and other alternative investments are complex and carry a risk of substantial losses. As such, they are not suitable for all investors. For more information, visit <a href="http://www.rcmalternatives.com/disclaimer" target="_blank" rel="ugc noopener noreferrer">⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠www.rcmalternatives.com/disclaimer⁠</a></p>

The Derivative

RCM Alternatives

Retail to Institutional: How David Sun Scaled His ODTE Options Strategies

NOV 7, 202467 MIN
The Derivative

Retail to Institutional: How David Sun Scaled His ODTE Options Strategies

NOV 7, 202467 MIN

Description

<p>In this episode, Jeff Malec sits down with David Sun, an entrepreneur, trader, and fund manager with a unique journey into the world of options trading and alternative investments. David shares his unconventional path, starting as a retail trader experimenting with options strategies, particularly selling puts, before transitioning to professional fund management. He discusses the challenges and lessons learned as he navigated various market regimes, including the 2018 and 2020 downturns. The conversation delves into David's systematic approach to options trading, focusing on risk management techniques like stop losses and hedging strategies. He explains his evolution from primarily selling options to incorporating more option buying, as well as his exploration of zero days to expiration (zero DTE) options and the unique risks and considerations involved. David also shares insights into the role of behavioral biases in the markets and how he leverages data-driven research to develop robust trading strategies. He reflects on the increasing accessibility of trading tools and resources, and the valuable contributions of the retail trading community.</p> <p><br /></p> <p>Chapters:</p> <p>00:00-02:08=Intro 02:09-09:21= Engineer to Retail trader to Fund manager – an unconventional path</p> <p>09:22-18:21= Don’t quit your day job &amp; Option-based fund management</p> <p>18:22-26:09= Mitigating gamma risk in short-dated options &amp; Focusing on the win rate</p> <p>26:10-35:47= Exploring behavioral biases and combining systematic &amp; discretionary styles</p> <p>35:48-45:39= Democratizing trading: Hedging, Volatility, Trend, and Broken butterflies</p> <p>45:40-57:11= Sharing knowledge and resources: The Trade Busters podcast &amp; bridging the gap</p> <p>57:12-01:07:18= Naïve to Trends, momentum, edge? &amp; the human behavioral bias</p> <p><br /></p> <p>From the episode:</p> <p><a href="https://www.amazon.com/Fooled-Randomness-Hidden-Markets-Incerto/dp/1400067936/ref=asc_df_1400067936/?tag=hyprod-20&amp;linkCode=df0&amp;hvadid=693656043032&amp;hvpos=&amp;hvnetw=g&amp;hvrand=16604301098207740820&amp;hvpone=&amp;hvptwo=&amp;hvqmt=&amp;hvdev=c&amp;hvdvcmdl=&amp;hvlocint=&amp;hvlocphy=9021664&amp;hvtargid=pla-432994518689&amp;psc=1&amp;mcid=f03000b4e9713ce7bdaeefe763bc45da&amp;tag=hyprod-20&amp;linkCode=df0&amp;hvadid=693656043032&amp;hvpos=&amp;hvnetw=g&amp;hvrand=16604301098207740820&amp;hvpone=&amp;hvptwo=&amp;hvqmt=&amp;hvdev=c&amp;hvdvcmdl=&amp;hvlocint=&amp;hvlocphy=9021664&amp;hvtargid=pla-432994518689&amp;psc=1" target="_blank" rel="ugc noopener noreferrer">Fooled by Randomness (Book)</a></p> <p><a href="https://www.rcmalternatives.com/2023/03/wtf-will-0dte-cause-gammageddon-with-mike-green-and-craig-peterson/" target="_blank" rel="ugc noopener noreferrer">The Derivative episode: WTF?! Will 0DTE Cause Gammageddon? With Mike Green and Craig Peterson</a></p> <p><a href="https://www.smartless.com/episodes" target="_blank" rel="ugc noopener noreferrer">Smartless podcast</a></p> <p> </p> <p>Follow Along:</p> <p>Follow along with David on Twitter <a href="https://x.com/TheTradeBuster" target="_blank" rel="ugc noopener noreferrer">@TheTradeBuster</a> and also be sure to check out <a href="https://podcasts.apple.com/us/podcast/the-trade-busters/id1576884492" target="_blank" rel="ugc noopener noreferrer">The Trade Busters podcast</a></p> <p><br /></p> <p>Don't forget to subscribe to <a href="https://www.rcmalternatives.com/the-derivative-podcast/" target="_blank" rel="ugc noopener noreferrer">⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠The Derivative⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠</a>, follow us on Twitter at <a href="https://twitter.com/rcmAlts" target="_blank" rel="ugc noopener noreferrer">⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠@rcmAlts⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠</a> and our host Jeff at <a href="https://twitter.com/AttainCap2" target="_blank" rel="ugc noopener noreferrer">⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠@AttainCap2⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠</a>, or <a href="https://www.linkedin.com/company/rcm-asset-management/" target="_blank" rel="ugc noopener noreferrer">⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠LinkedIn⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠</a> , and <a href="https://www.facebook.com/RCMAlternatives/" target="_blank" rel="ugc noopener noreferrer">⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Facebook⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠</a>, and <a href="https://info.rcmalternatives.com/get-our-blog-alternatives" target="_blank" rel="ugc noopener noreferrer">⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠sign-up for our blog digest⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠</a>.</p> <p>Disclaimer: This podcast is provided for informational purposes only and should not be relied upon as legal, business, or tax advice. All opinions expressed by podcast participants are solely their own opinions and do not necessarily reflect the opinions of RCM Alternatives, their affiliates, or companies featured. Due to industry regulations, participants on this podcast are instructed not to make specific trade recommendations, nor reference past or potential profits. And listeners are reminded that managed futures, commodity trading, and other alternative investments are complex and carry a risk of substantial losses. As such, they are not suitable for all investors. For more information, visit <a href="http://www.rcmalternatives.com/disclaimer" target="_blank" rel="ugc noopener noreferrer">⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠www.rcmalternatives.com/disclaimer⁠</a></p>