Explained! Systematic Options Strategies with David Sun - David Sun

In this discussion, the ReSolve team is joined by David Sun, a retail investor turned hedge fund manager with a background in engineering. David shares his journey from options trading during grad school to launching two private options-based hedge funds. He discusses the intricacies of options trading, the importance of risk management, and the evolution of his investment strategies. Topics Discussed •David Sun's background in engineering and his transition into options trading and hedge fund management •The launch of David's two private options-based hedge funds and the rationale behind having two separate funds •The importance of risk management in options trading and how David's strategies have evolved to minimize volatility drag •The concept of return stacking portfolios and how it has been applied in David's funds •The role of diversification in enhancing portfolio performance and reducing risk •The potential of long volatility strategies as a diversifier and how they can be applied in retail investing •The impact of market changes on strategy backtesting and the importance of continuously updating strategies to reflect current market conditions •David's views on the future of his funds and the potential for launching a third fund •David's public presence and his efforts to educate retail investors through his podcast, The Trade Busters David Sun provides a unique perspective on options trading and hedge fund management, drawing from his background in engineering and his experiences as a retail investor. His insights into risk management, portfolio diversification, and strategy development offer valuable lessons for anyone interested in the intricacies of options trading and hedge fund management. This episode is a must-listen for those looking to deepen their understanding of these complex financial landscapes. This is “ReSolve Riffs” – published on Friday afternoons 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. *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.