Wealth Building With Options

Ep14 - Greek Geekery and Skewed Truth

Episode Summary:
In this episode, Dan dives into one of the most misunderstood aspects of options trading: the Greeks — and more importantly, where the real edge in trading actually comes from. Contrary to what many novice traders believe, theta is not the edge. The real advantage lies in volatility and skew.

With practical examples and 30 years of trading experience, Dan breaks down how delta works, why traders often misinterpret theta, and how cash-secured puts and covered calls use volatility pricing to your advantage.

In This Episode, You’ll Learn:

• Why theta is not a reliable trading edge, despite popular belief
• How delta works in directional trading and how to simplify its meaning
• The true nature of short puts and why they behave like bullish stock positions
• How risk premium gives option sellers an advantage
• Why options behave like insurance policies — and how that helps traders
• What volatility skew is and how to recognize it
• How covered calls and cash-secured puts benefit from implied volatility mispricing

Key Concept:
Delta isn’t just a Greek — it’s the sensitivity of an option’s price relative to the underlying stock. When you understand how delta mirrors share ownership, your perspective on options changes completely. And when you understand skew, you start trading with a real edge.

Additional Resources:
To access bonus video content, trade adjustments, and subscriber-only episodes, visit:
wealthbuildingwithoptions.substack.com

Support the Show:
Share this podcast with fellow traders and subscribe to your favorite app so you don’t miss the next episode. A quick review or rating helps the show grow and reach more traders like you.

Disclaimer:
Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before investing. Link: https://www.theocc.com/getmedia/a151a9ae-d784-4a15-bdeb-23a029f50b70/riskstoc.pdf

Ep13 - The Golden Age of Options: A Conversation with Steven Sears

Episode 13 – The Golden Age of Options: A Conversation with Steven Sears

In this episode of Wealth Building With Options, Dan Passarelli sits down with one of the most influential voices in the options world—Steven Sears. A former senior editor at Barron’s, senior advisor to the Philadelphia Stock Exchange, and a key figure in the rise of electronic options trading, Sears brings decades of front-line experience and deep insight into how options can transform a portfolio.

In this wide-ranging and insightful conversation, you’ll discover:

• Why we’re entering a “golden age” for options—and what it means for everyday investors
• The power of compounding through covered calls and cash-secured puts
• How top professionals select stocks to complement options strategies
• Why managing volatility is more essential than ever in today’s market
• The shift from speculative trading to disciplined, process-based investing
• What most investors misunderstand about selling options—and how to fix it
• The mindset that separates consistent winners from everyone else

Whether you're new to options or looking to sharpen your edge, this episode will challenge your assumptions, reframe your strategy, and inspire confidence in a smarter, steadier approach to building wealth.

Listen now and hear how Steven Sears sees the evolving landscape—and how you can thrive in it.

For more information about Dan Passarelli join him on Substack at https://wealthbuildingwithoptions.substack.com

Options Disclosure:

Options involve risk and are not suitable for all investors. Prior to buying or selling an option, you must receive a copy of Characteristics and Risks of Standardized Options, also known as the options disclosure document (ODD). It is available at https://www.theocc.com/Company-Information/Documents-and-Archives/Options-Disclosure-Document.

Ep12 - I've Reached My Limit

Episode Summary:

In this episode, Dan Passarelli breaks down a powerful trading concept: using cash-secured puts as a smarter, more strategic version of limit orders. If you've ever hesitated about assignment or second-guessed a put trade, this episode is for you.

Dan shares real-world stories (including a Vegas twist involving a mastermind event that… wasn’t) and psychological lessons from 7,000+ trading days. He explains why assignment shouldn’t be feared, how premium collection changes the math on your trade entries, and how traders often let emotion sabotage what could be great opportunities.

Later, Dan welcomes back John Kmiecik, a trading coach who’s worked with hundreds (maybe thousands!) of students on mastering this mindset. Together, they explore:

• Why traders often fear assignment more than they should
• How selling puts is like getting paid to place a limit order
• Real trading examples from John (including his recent strategy with Comcast)
• The psychological traps that can derail traders — and how to avoid them
• Tactical advice for identifying price levels where you're truly comfortable owning stock

Key Takeaways:

• Assignment isn’t failure — it's part of the plan when using puts to enter stock positions.
• Cash-secured puts can lower your effective purchase price, even without assignment.
• Psychology is everything. Fear, regret, and hesitation often cost more than any bad trade.
• A put that doesn’t get assigned? You still keep the premium. That’s the hidden win.
• Planning your response before you enter a trade is the key to long-term consistency.

Next Steps: 

• Subscribe to Dan’s Substack, https://wealthbuildingwithoptions.substack.com for Video Extras, trade recaps, and monthly AMA sessions.
• To work with Dan and John you can connect with them at Markettaker.com
• Options involve risk and may not be suitable for all investors. Read Characteristics and Risks of Standardized Options before investing. https://www.theocc.com/getmedia/a151a9ae-d784-4a15-bdeb-23a029f50b70/riskstoc.pdf

Ep11- Cash-Secured Puts: The Brother from Another Mother

In this episode, Dan dives into a powerful but often misunderstood options strategy: the cash-secured put. Often considered the sibling of the covered call, this strategy blends the best of investing discipline with the premium-collecting power of options trading.

What You’ll Learn:

• Why Dan used to hate cash-secured puts—and what changed his mind
  
  
• How selling puts can feel like setting a “limit order with benefits”
  
  
• The psychology behind financial freedom and higher-frequency trading
  
  
• The critical difference between trading and investing mindsets
  
  
• When assignment is part of the plan (and how to make that work for you)
  
  
• Key mechanics of the trade: risk, reward, and break-even calculations
  
  
• Real-life example: selling puts on WXYZ (Wanda’s Extra Yarn & Zippers Inc.)
  
  
• Why many traders stress less with cash-secured puts than with covered calls
  
  

Special Segment:

Dan brings on options coach John Kmiecik to talk about:

• How traders use cash-secured puts in one-on-one coaching sessions
  
  
• Why this strategy might be less stressful than covered calls
  
  
• How to manage trades if you don’t want to be assigned
  
  
• The role of sizing, account value, and portfolio allocation when using this strategy
  
  
• Common pitfalls like averaging down without a plan
  
  

Bonus for Subscribers:

Paid subscribers get access to:

• Video extras that break down P&L diagrams for cash-secured puts
  
  
• Real trade examples from Dan’s IRA
  
  
• Monthly Ask Me Anything sessions and more
  
  

Subscribe on Substack at:
wealthbuildingwithoptions.substack.com

Key Quote:

“Cash-secured puts aren’t just trades — they’re a mindset shift. They’re how investors say, ‘I’ll buy the stock… but only at my price.’”

 

Before Investing in Options download Characteristics and Risks of Standardized Options https://www.theocc.com/getmedia/a151a9ae-d784-4a15-bdeb-23a029f50b70/riskstoc.pdf

Ep10 - Jumping into the Deep End of Covered Calls with Russell Rhoads

Episode Summary:
In this special episode, Dan Passarelli is joined by longtime friend and options expert Russell Rhoads—Associate Clinical Professor at Indiana University, former CBOE educator, and seasoned trader. They dive deep into real-world options education, covering everything from teaching college students about derivatives to building structured outcomes with options.

Topics Covered:

• Why concepts matter more than complex math when teaching options
  
  
• Covered calls and cash-secured puts as strategic investing tools
  
  
• How to use implied volatility (IV) and the at-the-money straddle for strike selection
  
  
• Surprising insights from Russell’s backtest on covered call strategies during earnings weeks
  
  
• The evolving perception of options in retail vs. institutional circles
  
  
• Understanding the VIX term structure and what today’s flat curve might be signaling
  
  
• How to “become the issuer” of your own structured product using options
  
  
• Why selling options—especially in calm markets—can give you the edge
  
  
• Tips for navigating earnings season with confidence
  
  

Key Takeaways:

• A consistent covered call strategy can outperform buy-and-hold—especially if you exit during earnings weeks
  
  
• The at-the-money straddle is a powerful, underused tool for estimating expected moves and timing trades
  
  
• Retail traders can learn to structure their own risk and reward profiles, just like institutional structured products
  
  
• The VIX futures term structure reveals market uncertainty—and today's unusual flat curve might be a red flag
  
  

Guest Bio:
Russell Rhoads is an experienced options educator, researcher, and practitioner. He teaches at Indiana University’s Kelley School of Business and consults with financial exchanges. Previously, he was the Director of Education at the CBOE’s Options Institute.

Resources Mentioned:

• Learn more about Dan: MarketTaker.com
  
  
• For options disclosures: Characteristics and Risks of Standardized Options (PDF)www.theocc.com/getmedia/a151a9ae-d784-4a15-bdeb-23a029f50b70/riskstoc.pdf
  

Subscribe & Review:
Don’t miss the next episode, “Cash-Secured Puts: The Brother from Another Mother” – Subscribe now and leave a review to help grow the Wealth Building With Options community!

Ep9 - Effing Around and Finding Out Why Covered Calls Work

Welcome back, Wealth Builders! In this episode, Dan Passarelli takes a deep dive into why covered calls continue to outperform the market over time—but only when done right. If you've ever wondered what gives covered calls their edge, this is your episode.

Key Topics Covered

• The Truth Behind Covered Calls: Why the strategy works statistically—but why most investors still fail with it.
  
  
• The Option Greeks Breakdown:
  
  
  • Delta (directional sensitivity)
    
    
  • Theta (time decay)
    
    
  • Vega (volatility sensitivity)
    
    
• The Hidden Edge: Risk Premium: How options have historically been overpriced since the 1987 crash, and how sellers can benefit.
  
  
• Volatility & Market Inefficiency: A critique of the Efficient Market Hypothesis and what it means for options traders.
  
  
• Why Repetition Matters: The compounding edge of consistently selling covered calls over time.
  
  
• Guest Interview: Henry Schwartz, VP of Market Intelligence at Cboe Global Markets, shares expert insights into the structural reasons options tend to be overpriced and how sellers can harness that edge.

“The price one can sell an option for is greater than the value it adds. That’s the whole magic of covered calls.” – Dan Passarelli

Free Gift: Covered Call Strategy Guide

Leave a review on Apple Podcasts, Spotify, or wherever you listen.
Then:

1. Take a screenshot of the review.
   
   
2. Post it to our Substack or on social media.
   
   
3. Use the hashtag #WBWO.
   
   

And we’ll send you Dan’s Covered Call Strategy Guide for free!

Mentioned in This Episode

• Dan’s book: Trading Option Greeks
  
  
• Black-Scholes Model origins
  
  
• Ken Griffin’s early arbitrage trades at Harvard
  
  
• University of Chicago’s Efficient Market Theory
  
  
• CBOE Global Markets and options data insights - https://go.cboe.com/l/77532/2025-02-13/flrl76/77532/1739470545lScFNDr9/State_of_Industry_January_2025_NEW.pdf

Tools for Traders

• Learn more about Dan at MarketTaker.com
  
  
• Subscribe to our Substack Newsletter https://wealthbuildingwithoptions.substack.com
  
  
• Follow Dan on social media
  • Instagram-https://www.instagram.com/markettakermentoring/
  • YouTube-https://youtube.com/markettakermentoring
  • Twitter-https://twitter.com/Dan_Passarelli
  • Facebook- https://www.facebook.com/markettaker

Don't miss Episode 10 with a very special surprise guest—someone with game-changing insight into options trading that you won’t want to miss.

Until then...
Invest excellently.

Ep8 - They Lied to You! (Not) Why Covered Calls Work

Episode Summary:

In this eye-opening episode, Dan Passarelli challenges the common misconceptions surrounding covered calls. While most traders focus on “why” covered calls work, Dan flips the script and digs into the false narratives and misguided logic that lead investors astray.

Dan explains why some of the most popular justifications for trading covered calls are intellectually lazy—and how overlooking key factors like option pricing models and probability curves can lead to missed opportunities or unnecessary losses.

This episode lays the foundation for next week’s deeper dive into the true reason covered calls work.

Key Takeaways:

• You’ve been misled: Many reasons given for why covered calls "work" are based on flawed logic, not solid data.

• Probability ≠ Profit: High-probability trades don’t always equal good trades—context and pricing matter.

• The 3 flawed logics covered call traders often fall into:

  1. The premium isn’t worth the risk.

  2. Assignment means “losing money.”

  3. Covered calls always add value, so trade them blindly.

• What really matters: Understanding the options pricing model, probability curves, and the indifference point.

• Analogy alert: Dan compares covered calls to buying a car—price must reflect value or the deal isn’t worth it.

• Guest Insight: Henry Schwartz of Cboe Global Markets joins to share data-backed insights into how buy-write strategies are used and who’s trading them.

Featured Concepts:

• Log-normal distribution curves and probability modeling

• Indifference point explained with a $119/$122 call example

• Options pricing mechanics: volatility, time, interest rates

• How pricing impacts strategy effectiveness

Special Offer:

Leave a review for the podcast on Apple Podcasts, Spotify, or your preferred platform.
Then screenshot your review and post it to our Substack or social media with the hashtag #WBWO.
We’ll send you Dan’s Covered Call Strategy Guide PDF—free.

Resources Mentioned:

• Wealth Building With Options on SubStack-https://wealthbuildingwithoptions.substack.com/
• MarketTaker.com – Learn more about Dan Passarelli and his work
• Options Disclosure Document (ODD) – Characteristics and Risks of Standardized Options (https://www.theocc.com/getmedia/a151a9ae-d784-4a15-bdeb-23a029f50b70/riskstoc.pdf)

• Connect with Henry Schwartz and Cboe Global Markets at cboe.com

 

Ep7 - The Future of Options Trading with Fidelity’s Greg Stevens

Episode Summary:

In this special Thought Leader Series episode of Wealth Building with Options, host Dan Passarelli sits down with longtime friend and industry veteran Greg Stevens, Vice President of Options Strategy at Fidelity Investments.

With nearly 30 years of experience across firms like Charles Schwab, the CBOE, and now Fidelity, Greg shares how the options trading landscape has evolved and why education remains the cornerstone of trading success. From the early days of dial-up trading to today's powerful digital platforms, Greg and Dan explore how strategy, risk management, and planning shape trader outcomes.

This episode is packed with real talk on covered calls, cash-secured puts, credit spreads, investor mistakes, how Fidelity supports options traders—and why having a trading plan matters more than ever.

Key Topics Covered:

• Greg’s journey into the options world (and how he was “dragged” in)
  
  
• Why options education is critical in today’s trading environment
  
  
• The evolution of self-directed trading and investor expectations
  
  
• Most popular options strategies among Fidelity clients
  
  
• The real reasons covered calls and cash-secured puts are so popular
  
  
• What separates successful traders from those who struggle
  
  
• Why planning for profits and losses is essential
  
  
• Fidelity’s tools, including commission-free closing of short options under $0.65
  
  
• Greg’s favorite books and movies on trading (hint: Trading Places is a classic)
  
  

Resources Mentioned:

• Characteristics and Risks of Standardized Options (Options Disclosure Document)-https://www.theocc.com/getmedia/a151a9ae-d784-4a15-bdeb-23a029f50b70/riskstoc.pdf
  
  
• Learn more about host Dan Passarelli: www.markettaker.com
  
  
• Books referenced:
  
  
  • Options as a Strategic Investment by Lawrence G. McMillan
    
    
  • Trading Options Greeks by Dan Passarelli
    
    
  • Trading Index Options by Dan Bittman
    
    

Final Takeaway:

“Even a bad plan is better than no plan at all. You can adjust a bad plan—but you can’t fix what doesn’t exist.”

Subscribe & Stay Informed:

If you enjoyed this episode, please subscribe, leave a review, and share it with fellow traders looking to level up their options game. Subscribe on your favorite podcasting platform or on https://wealthbuildingwithoptions.substack.com