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Trading Education Posted by Team Topstep May 14, 2020

Bear Market Options Trading with Kirk du Plessis

Episode Summary:

We’ve been in a bear market for a few months now, but incredibly, the market has shown some signs of rallying. This is not necessarily a good thing when we factor in that unemployment could get up to 30%. We’re talking all that and more with Kirk du Plessis of Option Alpha on Limit Up! this week. Kirk is an options trader and has some great advice for protecting yourself while making trades.

Full Show Notes:

After two months of huge declines, the market has seen some slight rallies in the last few weeks. Not enough that we would say we’re out of the woods, but enough to offer some hope for freaked out traders everywhere.

On this week’s episode of Limit Up! Jack and Dan spoke to Kirk du Plessis of Option Alpha to find out how it’s going for options trading. Kirk has noticed that the current volatility is attracting passive investors lured in by the bullish trap. But it’s important to remember that no one, not even Warren Buffet, is immune to big losses. He shares his tips for making trades while staying protected during a prolonged period of uncertainty.

  • [00:53] – This week: Kirk Du Plessis
  • [01:21] – Market Reaction
  • [10:15] – Interview with Kirk Du Plessis
  • [11:44] – How Kirk got into finance
  • [14:49] – Directional bias
  • [16:30] – Delta neutral
  • [20:22] – Volatility expectations
  • [24:23] – What backtesting is meant to be
  • [27:56] – Option Alpha
  • [32:56] – CQG
  • [36:14] – Uptick in retail option trading
  • [37:17] – Determining risk
  • [48:14] – Election night
  • [51:32] – The new normal

Kirk du Plessis is the founder of Option Alpha, an online education and coaching platform for investors interested in learning more about the financial markets and derivative options. Option Alpha provides focused training covering options strategies, risk management, trading psychology, option pricing and portfolio allocation. Check out Option Alpha’s resources.


What is Limit Up?

Limit Up! is a podcast for traders of all levels brought to you by Topstep. Whether you’re considering a career in trading and don’t know where to start, or you’re a seasoned veteran looking for advice from big names in the financial industry, Limit Up! is your guide. Join us weekly as we discuss the market in all of its volatile glory. Risk Disclosure:

Jack Pelzer is a co-host of Limit Up! He traded as part of a U.S. Treasury group for 7 years at Chopper Trading and DRW. After leaving the industry, he became a Writing Fellow and Senior Contributing Writer for The Onion. He is now the Head of Content at Topstep.

Dan Hodgman is a co-host of Limit Up! Prior to coming to Topstep Dan traded 30 Yr Treasury Options and Yield Spreads. Before that, he served in the United States Marine Corps where he simultaneously managed his own Futures Account applying the skills he grew up learning from clerking on the trading floor. Now Dan works with the Traders here at Topstep as a Performance Coach as well as being a regular on the Daily Market Recap.

If you’d like to receive new episodes as they’re published, please subscribe to Limit Up! in Apple Podcasts, Google Podcasts, Spotify or wherever you get your podcasts. If you enjoyed this episode, please consider leaving a review in Apple Podcasts. It really helps others find the show.

Podcast episode production by Dante32.