The Derivative
Retail to Institutional: How David Sun Scaled His ODTE Options Strategies
Nov 7, 2024
David Sun, an entrepreneur and fund manager specializing in options trading, takes us through his fascinating journey from retail trader to handling funds. He discusses his embrace of zero-days-to-expiration strategies and the intricate risk management tactics he's developed along the way. Sun sheds light on behavioral biases affecting traders and highlights how data-driven approaches enhance decision-making. He also reflects on the evolution of accessibility in trading tools, revealing how retail investors are empowered today more than ever.
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Quick takeaways
- David Sun's journey from retail trader to fund manager highlights the importance of adaptability and structured methodologies in navigating various market conditions.
- A focus on risk management techniques, including stop-loss strategies and understanding behavioral biases, is crucial for sustainable success in options trading.
Deep dives
David Sun's Transition from Retail Trader to Fund Manager
David Sun shares his journey from a retail options trader with an electrical engineering background to managing a small fund. He initially engaged with options trading during the 2008 financial crisis, where he was introduced to selling puts instead of the more common practice of buying options. His early strategy involved a trial-and-error approach, leveraging online resources and communities to hone his skills, which ultimately led him to pursue fund management. By 2018, David launched his own options-based fund, navigating various market conditions and learning valuable lessons along the way about the complexities of trading.
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