Wealth Building With Options

Ep21-The Edge of Reason: And the Reason for Edge

In this episode of Wealth Building with Options, host Dan Passarelli explores one of the most powerful, yet often overlooked, concepts in successful trading: edge. Whether you're seeking an advantage like a card counter at the blackjack table or building consistency through disciplined investing, edge—the measurable statistical advantage—is what separates consistent winners from the rest.

What You'll Learn in This Episode:

• What edge really means in trading and how even a small edge can compound into powerful long-term results
  
• The three primary sources of edge every options investor needs to understand:
  
  • Fundamental analysis (PE ratio, price-to-book, operating yield, current ratio)
    
  • Technical analysis (support, resistance, moving averages, volume)
    
  • Volatility analysis (historical vs. implied volatility, vertical skew, term structure)
    
• How smart investors use support and resistance levels to improve strike selection and time their trades more effectively
  
• Why volatility pricing can create opportunity if you know how to spot overpriced or underpriced options
  
• A practical framework for setting strike prices and choosing expirations for covered calls and cash-secured puts
  

Dan also shares stories from the trading floor and insights from professional mentors, blending theory with real-world examples in a way that brings clarity to complex topics.

Resources Mentioned:

• The Intelligent Investor by Benjamin Graham
  
• Buffettology by Mary Buffett
  
• How to Read a Financial Report by John and Tage Tracy
  

Final Thoughts:

Even a 1–2% edge can significantly improve your trading outcomes—especially when compounded over time. Dan explains how mastering these analytical tools can help you trade more confidently and profitably, while avoiding common mistakes.

Subscribe to the show to catch Episode 22, where Dan dives deep into buy-writes and how to maximize capital efficiency using this foundational strategy.

To support the show and get access to exclusive episodes, trade breakdowns, and AMAs, visit:
wealthbuildingwithoptions.substack.com

Options involve risk and are not suitable for all investors. Please review the Characteristics and Risks of Standardized Options before trading.

To learn more about Dan Passarelli and the Market Taker Mentoring community, visit MarketTaker.com

Ep20 - Square, Level and All Effed Up

Description:
You wouldn’t build a garden without a plan (or at least you shouldn’t). And you sure as heck shouldn’t place a covered call or cash-secured put without knowing exactly why you’re doing it. 

In this episode, Dan shares a hilariously frustrating story about building a backyard garden with his daughter — and how forgetting one small measurement led to a big headache. Then he breaks down how that same mistake shows up in options trading when traders skip the fundamentals and just “wing it.”

Covered calls and cash-secured puts might seem simple — but if you’re not following this checklist, you’re likely doing it wrong. This episode gives you the must-follow framework to avoid costly errors and start trading with clarity and confidence.

You’ll Learn:

• The only two valid reasons to place a covered call or CSP — and why anything else is a red flag
• Why stocks under $30 are usually a waste of time for income strategies
• What the “10% Rule” is — and how it instantly tells you if your option is tradable
• How to use theta and “aggregate theta” to maximize your returns over time
• The rookie mistake traders make by ignoring volatility events like earnings (and how to avoid it)
  

Key Insight:

“You don’t get to think outside the box until you know what’s inside it.”

Don’t Miss:

• Dan’s “Nail the Trade” checklist — the same system he’s been refining for 8+ years
• Why implied volatility isn’t always make-or-break — and when it is
• How to line up your trade with your actual investing plan, not just what “looks good”

 

Be sure to read Characteristics and Risks of Standardized Options before investing with options. Options involve risk, only risk capital should be used. 

Ep19- The Triple Lindy and Making a Big Splash

In this episode of Wealth Building with Options, Dan dives deep into the three critical criteria for selecting the best strike and expiration when selling cash-secured puts:

• Support levels
• Theta (both straight and aggregate)
• Implied volatility and skew

Dan breaks down the logic behind what makes these factors so valuable—especially for investors who want to either generate premium or strategically acquire stock. He shares some "campfire knowledge" and real-world tactics that go far beyond theory and into practical application.

Dan is joined by John Kmiecik, who shares how he guides students to find optimal support levels using multiple timeframes, how he filters out the chart “noise,” and what technical indicators (like RSI and moving averages) may or may not be worth your time.

Whether you're trying to invest more confidently or fine-tune your entry points, this episode will give you a sharper lens for executing cash-secured put strategies like a pro.

What You’ll Learn

• Why support lines are crucial for choosing put strikes—and how to spot them using multiple timeframes
• The difference between straight theta and aggregate theta—and how both affect decision-making
• How to evaluate weekend theta and avoid the trap of holding options through unnecessary decay
• Why volatility skew (vertical and horizontal) matters when selecting expirations and strikes
• How to think in terms of 7-day decay periods to uncover the best value across different expirations
• Why trading doesn’t have to be overcomplicated—and how to eliminate the noise from your charts

Memorable Quotes

“Some of this is campfire knowledge... but a lot of it is what I’ve learned from trading for decades.” — Dan Passarelli

“Support and resistance have made it through thick and thin with me. I’ve divorced a lot of technical indicators, but I’m still married to support.” — John Kmiecik

“It’s not just about the flat theta number—it’s about knowing what that number really means over time.” — John Kmiecik

Resources & Extras

• Video Extra: Visual breakdown of straight vs. aggregate theta (available to premium subscribers)
• Characteristics and Risks of Standardized Options (Options Disclosure Document)
• Subscribe for bonus content at wealthbuildingwithoptions.substack.com

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Ep18 - Chewing the Fat About Meat and Tasty Chicken Feet

In this episode, Dan Passarelli dives deep into the strategy that many investors think they understand — but often get wrong: cash-secured puts. While most investors learn to sell puts early in their options journey, few truly master the nuance and mindset that separate solid trades from subtle mistakes.

Dan unpacks the six core guidelines for executing high-quality CSPs, shares his personal evolution from skeptic to strategist, and reveals how most investors fall into the “time bomb strategy” trap — and how to avoid it.

But that’s not all…
He also takes us on a culinary detour through Icelandic puffin, Chinese chicken feet, and even donkey meat. It’s all part of the journey toward investing maturity — and yes, maybe building some collagen while we're at it.

Later, frequent guest and coach John Kmiecik joins the conversation to challenge common myths, like the "sweet spot" of the 30 delta put and why most investors choose strikes that are too conservative — even when they say they want to be assigned.

In This Episode:

• Why cash-secured puts aren’t as “simple” as they seem
• The six guidelines that will instantly improve your CSP trades
• Why objective is everything: Are you skating or trading?
• How investors sabotage themselves with backtesting myths
• The real risk of selling far OTM puts (it’s not what you think)
• How fundamentals like book value and tangible book value shape CSP decisions
• Why most new investors don’t really know if they want to be assigned
• A sneak peek into John’s technical approach for CSPs — coming in Episode 19

Key Insight:

“Cash-secured puts are the meat and potatoes of options trading — but to get the flavor right, you need more than just the recipe. You need the right mindset, the right tools, and the right objectives.”

Subscribe & Support:

Like what you’re hearing?
Help grow the Wealth Building with Options community:

1. Share the show with investors who want more confidence and control in their strategy.
2. Subscribe on your favorite podcast app so you never miss an episode.
3. Support the podcast by joining Dan’s Substack — get video extras, trade breakdowns, and exclusive AMA access.
   
   

Resources:

• Learn more about your host at MarketTaker.com
• Read: The Characteristics and Risks of Standardized Options PDF
  
  

Next Time:

Join us for Episode 19 where John returns to dig into technical analysis for cash-secured puts — and how it fits into a full-spectrum edge-based strategy.

Ep 17- Seasonality, Cycles & the Calendar Edge with Jeffrey Hirsch Editor-in-Chief of the Stock Trader's Almanac

Dan Passarelli is joined by Jeffrey Hirsch, editor-in-chief of the Stock Trader’s Almanac, to talk seasonality, market cycles, and the powerful edge of timing your trades around historical patterns. From family legacy to tactical trade execution, Jeff breaks down how decades of research—plus some good old-fashioned intuition—can give traders a powerful boost.

What You’ll Learn in This Episode:

• Why "Buy in October and get your portfolio sober" might be better advice than “Sell in May and go away”
• The most reliable fundamental metric for selecting value stocks
• How Jeff’s family legacy shaped the Stock Trader’s Almanac—and how he came to embrace it
• The surprising consistency of intraday trading patterns in a high-frequency world
• Using seasonality with options: When to sell puts and calls for maximum edge
• The power of the “best six months” and how to trade them with covered calls
• Seasonal volatility trends—especially around August through October
• Insights into election year cycles and how political shifts affect markets
• A personal side of Jeff Hirsch: music, Broadway, and producing a musical inspired by The Elephant Man

Featured Guest:
Jeffrey Hirsch
Editor-in-Chief, Stock Trader’s Almanac
Market historian, strategist, and student of behavioral finance

Resources Mentioned:

• Stock Trader’s Almanac
• Learn more about Dan Passarelli and Market Taker Mentoring at MarketTaker.com

Subscribe & Share:
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Share with a fellow trader
Leave us a 5-star review to let others know this show helps real investors get real results

Ep16 - OG CC Setups (part II)

Welcome back to Wealth Building with Options! In this episode, we’re diving deep into a trader's secret weapon: the Trade Objective of the covered call strategy — specifically, using covered calls to strategically exit a stock position.

If you’ve ever wondered:

• How do I get the most out of a stock I already own?
• What role does theta really play in my premium income?
• How do I avoid leaving money on the table — or getting assigned too early?

…this episode is for you.

Dan Passarelli breaks down the nuances of “trading out of a stock you own” through smart strike selection, theta analysis, and volatility evaluation — and shares how to do it with confidence, precision, and better returns.

Here’s what you’ll learn:

• Why traders should treat their trading like a real business — not a side hustle
• The difference between the Skate Objective and the Trade Objective in covered calls
• How theta, volatility, and time to expiration impact the effectiveness of your trade
• The concept of aggregate theta and how to use it to compare expirations for maximum premium collection
• Why tight bid/ask spreads and avoiding earnings dates are critical to your setup
• The pros and cons of selling calls on stocks trading near all-time highs
• How to incorporate both technical resistance and dividend timing into your decision-making
  
  

Special Guest: John Kmiecik
Dan is joined by trader and educator John Kmiecik, who shares his practical perspective on using theta and premium analysis to fine-tune covered call trades. They dig into real examples, including John’s experience with Comcast shares, and discuss how sometimes the best trade is the one you don’t make.

Listener Challenge:
Think about a stock you own that you’d consider selling at a higher price. Would a covered call help you exit at that level while collecting cash along the way? What would make it worth it — and what wouldn’t?

Resources & Mentions:

• Dan's Substack – https://wealthbuildingwithoptions.substack.com for video extras, trade breakdowns, and AMA access
• Episode 10 with Dr. Russell Rhoads 
• Episode 13 with Steven Sears
  

Subscribe now so you don’t miss Episode 17, featuring a very special guest and even more ways to take your option trading to the next level.

Ready to treat your trading like a business? This is where you start.

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

To learn more about Dan Passarelli and Market Taker Mentoring, visit MarketTaker.com.

Ep15 - OG CC Setups (part I)

In this deep-dive episode, Dan Passarelli lays out the OG Covered Call setup—the foundational approach to trading covered calls that every serious trader should understand. This episode is Part 1 of a two-part series that walks through the “Skate” Objective—a strategy focused on collecting premium while avoiding assignment.

Dan brings together technical chart analysis, volatility evaluation, and decades of options expertise to show you how to set up covered calls with confidence and precision.

Key Takeaways

• Why sell options only when volatility is overpriced — and how to determine when that is
• The importance of stock price and liquidity when choosing covered call candidates
• Avoid earnings events and other scheduled volatility shocks that can ruin setups
• The 10% Rule to minimize slippage and improve execution
• Using technical resistance to “skate” profitably without getting assigned
• Chart types explained (candles vs. bars vs. lines) and why candlesticks can give you an edge
• How to evaluate volatility using the “1-2-3 Volatility Analysis”:

Tools & Concepts Covered

• Covered Calls vs. Cash-Secured Puts
• Option Chain Analysis
• Implied Volatility (IV) vs. Historical Volatility (HV)
• Resistance and Inflection Points
• Strike Proximity and “Wiggle Room”
• Using 6-month daily candle charts for timing and strike selection

Join the Community

Enjoying the podcast? Help grow the community:

• Share the podcast with other traders
• Subscribe in your favorite podcast app
• Leave a review to support the show
• Join the Wealth Building With Options Substack at https://wealthbuildingwithoptions.substack.com

Disclaimer

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

 

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