2min chapter

Chat With Traders cover image

248: David Sun - Systematic Options Trading - Minimize Risk, Optimize Edge

Chat With Traders

CHAPTER

The Long Term Expectancy Cap Cure Strategy

You can kind of set a high level return target and use that to back into the size of each individual trade. And again, size in this case is determined by the amount of premium, not necessarily the contract size. So if I'm expecting to long term net 25% of all the premium myself,. I take my 10,000 P and L target and basically divided by point to five. You get 40,000, which means if I sell 40,000 of premium in a given year, then if INet 25% of that right that's my10,000 target. At the end of the year, you would have sold 40,000 premium. Right. If at the end

00:00

Get the Snipd
podcast app

Unlock the knowledge in podcasts with the podcast player of the future.
App store bannerPlay store banner

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode

Save any
moment

Hear something you like? Tap your headphones to save it with AI-generated key takeaways

Share
& Export

Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode