Explained! Systematic Options Strategies with David Sun - David Sun

In this discussion, the ReSolve team is joined by David Sun, a retail investorturned hedge fund manager with a background in engineering. David shares hisjourney from options trading during grad school to launching two privateoptions-based hedge funds. He discusses the intricacies of options trading, theimportance of risk management, and the evolution of his investment strategies.Topics Discussed•David Sun's background in engineering and his transition into options tradingand hedge fund management•The launch of David's two private options-based hedge funds and the rationalebehind having two separate funds•The importance of risk management in options trading and how David's strategieshave evolved to minimize volatility drag•The concept of return stacking portfolios and how it has been applied inDavid's funds•The role of diversification in enhancing portfolio performance and reducingrisk•The potential of long volatility strategies as a diversifier and how they canbe applied in retail investing•The impact of market changes on strategy backtesting and the importance ofcontinuously updating strategies to reflect current market conditions•David's views on the future of his funds and the potential for launching athird fund•David's public presence and his efforts to educate retail investors through hispodcast, The Trade BustersDavid Sun provides a unique perspective on options trading and hedge fund management,drawing from his background in engineering and his experiences as a retailinvestor. His insights into risk management, portfolio diversification, andstrategy development offer valuable lessons for anyone interested in theintricacies of options trading and hedge fund management. This episode is amust-listen for those looking to deepen their understanding of these complexfinancial 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.