Options involve risk and are not suitable for all investors. Before trading options, please read Characteristics and Risks of Standardized Option (ODD) which can be obtained from your broker; by emailing investorservices@theocc.com; or from The Options Clearing Corporation, 125 S. Franklin St., Suite 1200, Chicago, IL 60606. The content posted by our authors is intended to be general education and / or general information in nature. We are NOT providing advice for any individual trader. No statement made by our authors or subscribers is intended to be a recommendation or solicitation to buy or sell any security or to provide trading or investment advice. Traders and investors considering options should consult a professional tax advisor as to how taxes may affect the outcome of contemplated options transactions. Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing one's financial security or lifestyle. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.
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Welcome to the Wealth Building With Options Podcast with Dan Passarelli. This podcast is dedicated to making you a calm, consistent and confident options trader. Inside each episode, Passarelli, an options industry veteran, helps you avoid the common mistakes, pitfalls and misconceptions about options trading as a consistent wealth building activity. You will discover actionable strategies to build wealth using assets you may already own. With a primary focus on the traditional “Wheel Strategy,” Passarelli taps his 30+ years as a market maker on the Cboe floor and options educator for investment firms, traders and international governments to make the process simple, straightforward and effective. As a subscriber to the Wealth Building With Options Podcast you will gain the valuable insights only an experienced trader and educator can provide. You’ll discover the keys to making covered calls and cash-secured puts work for you as a consistent wealth building activity. Whether you are investing in an IRA, a fully funded trading account or are a hobby trader. This is the key to consistent income through options trading.
Episodes
7 days ago
7 days ago
Dan breaks down the true “secret sauce” of successful wheel trading: pairing the right objective (trade vs. skate) with the right type of analysis (fundamental vs. technical). He demonstrates how to reverse-engineer strike prices using dividend yields and valuation metrics and walks through a real example using Verizon (VZ).
Key Topics
- Defining the skate objective vs. the trade objective
- Why trade objective trades pair naturally with fundamental analysis
- Why skate objective trades pair naturally with technical analysis
- How to reverse-engineer strike prices using target dividend yields
- How to set strike prices using target P/E ratios
- Real-world example: Verizon (VZ) dividend and valuation analysis
- When to wait for better pricing or volatility before selling puts
- Preview of using support and resistance for skate trades
Key Takeaways
Every wheel trade needs a single, clear objective. Choose either skate (avoid assignment) or trade (seek assignment) to stay consistent and intentional.
Match your analysis to your objective. Use fundamentals for trade-objective entries and technicals for skate-objective premium selling.
Reverse-engineer your strike prices. Start with the yield or valuation you want, determine the stock price that achieves it, and choose the strike accordingly.
Premium can tweak your effective entry price—but don’t lose the plot. Premium helps refine entry, but fundamentals should guide the trade.
Wheel trading can be “almost win–win,” but risk still exists. Assignment locks in value; non-assignment yields premium—but price risk remains.
Conservative income plays can complement growth positions. High-yield value names can balance more aggressive holdings.
Connect
Learn more about host Dan Passarelli and Market Taker Mentoring: MarketTaker.com
Get exclusive content including video trade walk-throughs, Dan's actual trades, monthly AMA webinars and more: wealthbuildingpodcast.com
Subscribe on your preferred platform and leave a review to help more traders discover the show.
Next Episode Preview: Next time, Dan digs deeper into technical analysis for skate-objective trades, focusing on how horizontal support and resistance can help identify strike prices where the stock is less likely to move—boosting your confidence and consistency when selling premium.
Disclosure:
Options involve risk and are not suitable for all investors. Prior to buying or selling an option, investors must read Characteristics and Risks of Standardized Options (ODD) which can be found at https://www.theocc.com/company-information/documents-and-archives/options-disclosure-document
Don’t trade with money you are not prepared to lose. Anything discussed on this show is intended to be generalized information and not intended to be a recommendation to buy or sell any security. The host and guests are not familiar with listeners’ specific situations. For trading information relevant to your specific needs, speak with a licensed broker or advisor.
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Tuesday Dec 02, 2025
Tuesday Dec 02, 2025
Dan compares buying stocks to buying a dry cleaning business to demystify fundamental investing. Learn how value investors like Warren Buffett evaluate companies, and why understanding P/E ratios, earnings, and dividends can help you select better strike prices for your wheel trades.
Key Topics
- The dry cleaner analogy: why buying stock is just like buying a business
- P/E ratios: what they reveal when comparing competitors
- Intrinsic value vs. market price
- Earnings (EPS): quarterly vs. trailing twelve months
- Dividend mechanics and dividend yield
- Using fundamental metrics to set strike prices for wheel trades
- Why the market isn't as efficient as you think
Key Takeaways
You actually own the business. When you buy stock, you own a proportional share of that company's revenue—it's literally your money.
Dividend investors think backwards. While most people chase rising stocks, dividend investors wait patiently for prices to fall so they can lock in higher yields.
Price isn't value. The stock market often disconnects from intrinsic value—that's where opportunities hide.
Your fundamentals matter for strike selection. Understanding earnings and dividend yield can help you choose more strategic strike prices for covered calls and cash-secured puts.
Connect
Learn more about host Dan Passarelli and Market Taker Mentoring: MarketTaker.com
Get exclusive content including video trade walk-throughs, Dan's actual trades, monthly AMA webinars, and more: wealthbuildingpodcast.com
Subscribe on your preferred platform and leave a review to help more traders discover the show.
Disclosure:
Options involve risk and are not suitable for all investors. Prior to buying or selling an option, investors must read Characteristics and Risks of Standardized Options (ODD) which can be found at https://www.theocc.com/company-information/documents-and-archives/options-disclosure-document
Don’t trade with money you are not prepared to lose. Anything discussed on this show is intended to be generalized information and not intended to be a recommendation to buy or sell any security. The host and guests are not familiar with listeners’ specific situations. For trading information relevant to your specific needs, speak with a licensed broker or advisor.
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Tuesday Nov 25, 2025
Tuesday Nov 25, 2025
Episode Summary
In this conversation, Dan sits down with performance coach and former trader Denise Shull, author of Market Mind Games and the real-life inspiration for Wendy Rhoades on Billions. Denise explains why the old mantra “take the emotion out of trading” is scientifically wrong—and how learning to work with your emotions, instead of against them, can dramatically improve your decision-making. From intuition and regret to boredom, ADHD and market regime changes, this episode redefines what it means to be a “disciplined” trader.
In This Episode, You’ll Discover:
- Why every decision requires emotion
How modern neuroscience shows that perception is prediction—and that your brain is constantly asking, “Is this good or bad for me?” before you ever place a trade. - Emotions as data—not distractions
The difference between “integral” emotions (about the trade and market) and “incidental” emotions (about you, your P&L, identity and history), and why separating the two is a core trading edge. - How to use intuition without going “on tilt”
Why true intuition is unconscious pattern recognition built from experience (like a chef knowing a steak is done by sight) and when “I feel good about this trade” is useful versus dangerous. - A practical method to blend logic and gut feel
Denise’s 1–7 conviction/emotion scale, how granular emotional language improves performance and how to consciously factor “how much do I really believe this?” into your trading process. - The real role of regret and how slumps start
Why trying to “stay positive” can backfire, how unprocessed regret leads to trading slumps and how to use negative emotions to actually improve instead of burying them. - Cutting the worst 5% of your trades
How recognizing fear of future regret and choosing your “flavor of regret” can help you avoid revenge trades, impulse trades and the handful of decisions that wreck your year. - Managing boredom and ADHD tendencies
Practical ways traders can keep boredom from morphing into overtrading—by defining time frames, having intentional breaks and non-trading activities, and challenging the myth that you must always be in the market. - Adapting to market regime changes
How to think about market environments like different “genres of music,” why you don’t need to catch the exact top or bottom and how ego and the need to feel smart can sabotage regime shifts. - The one daily practice Denise recommends
The simple but powerful question—“What am I feeling and why?”—and how regularly sorting feelings into “about me” vs. “about the market” aligns you with how the human brain actually works.
About Our Guest – Denise Shull
Denise Shull is a former CBOE floor trader turned performance coach specializing in decision-making under risk and uncertainty. She holds a master’s degree in neuropsychoanalysis from the University of Chicago, traded at firms like Schonfeld, and later ran a day trading desk during the internet boom. Her work shows how emotion and cognition are intertwined in every decision—a theme she explores in her book Market Mind Games, which helped inspire the Wendy Rhoades character on Showtime’s Billions. Today, she coaches hedge fund managers, traders, and elite athletes around the world on how to use emotions and intuition as a competitive edge.
Disclosure:
Options involve risk and are not suitable for all investors. Prior to buying or selling an option, investors must read Characteristics and Risks of Standardized Options (ODD) which can be found at https://www.theocc.com/company-information/documents-and-archives/options-disclosure-document
Don’t trade with money you are not prepared to lose. Anything discussed on this show is intended to be generalized information and not intended to be a recommendation to buy or sell any security. The host and guests are not familiar with listeners’ specific situations. For trading information relevant to your specific needs, speak with a licensed broker or advisor.
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Tuesday Nov 18, 2025
Tuesday Nov 18, 2025
Finding quality trade ideas for the Wheel Strategy is essential—but where do you actually get them? In this episode, Dan Passarelli breaks down the best (and worst) sources for finding wheel trade candidates. From trade idea services and investment clubs to news media and DIY analysis, Dan explores the pros and cons of each approach and shares what really works for covered calls and cash-secured puts.
Dan also discusses why boring, sideways stocks make the best wheel candidates, why the pundits' favorite stocks are often the trickiest to trade, and teases an upcoming series on fundamental, technical, and volatility analysis for building your own watchlist.
What You'll Discover in This Episode:
- Trade idea services: The difference between "general trades" and wheel-specific investment ideas
- Why most trade idea services only give entries (not exits) and how to evaluate them
- Investment clubs: Learning from peers and building synergy through shared knowledge
- The media trap: Why stocks that "bleed" or soar aren't always ideal for wheel trading
- Selling options is selling volatility: Why sideways stocks outperform for covered calls and CSPs
- DIY analysis preview: Dan's upcoming deep-dive episodes on fundamental, technical, and volatility analysis
- The role of "idea people" in trading and why dreams need execution
Resources & Links:
- Subscribe to the Wealth Building With Options Podcast
- Learn more about host Dan Passarelli and Market Taker Mentoring: MarketTaker.com
- Support the Show: Become a paid subscriber at WealthBuildingPodcast.com for access to video extras, subscriber-only trade ideas, all of Dan's real covered call and cash-secured put trades, monthly AMA webinars, and unusual options activity alerts
Disclosure:
Options involve risk and are not suitable for all investors. Prior to buying or selling an option, investors must read Characteristics and Risks of Standardized Options (ODD) which can be found at https://www.theocc.com/company-information/documents-and-archives/options-disclosure-document
Don’t trade with money you are not prepared to lose. Anything discussed on this show is intended to be generalized information and not intended to be a recommendation to buy or sell any security. The host and guests are not familiar with listeners’ specific situations. For trading information relevant to your specific needs, speak with a licensed broker or advisor.
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Tuesday Nov 11, 2025
Tuesday Nov 11, 2025
In this episode of Wealth Building with Options, Dan sits down with James Kostulias, Head of Trading Services at Schwab—where he oversees the end-to-end trading experience for clients at a firm averaging over 7 million trades per day for three consecutive quarters.
From Schwab’s latest Q4 Trader Sentiment Survey to the dramatic evolution from “options are too risky” to “options as risk management tools,” James shares an insider’s view of how retail trading has fundamentally transformed.
If you've ever wondered how serious traders think about hedging, income generation, and adapting to different market regimes, this conversation is packed with insights you can put to work in your own trading.
Listen, You'll Discover
- Why traders are “bullish but cautious” right now — How Schwab’s Q4 Trader Sentiment Survey shows more than half of respondents are bullish on the market long term—while a growing majority (66%, up from 56%) also think it’s overvalued in the short term.
- How options fit a bullish-but-worried mindset — The specific ways traders are using stock replacement, covered calls, hedging, and other options strategies to stay invested while managing downside risk.
- The evolution of the retail options trader — How clients have shifted from viewing options as “too risky” to using them as core risk-management tools—and why 1 in 3 traders (versus 1 in 5 just two years ago) are now moving into complex options within their first year.
- From 90% traders to 50/50 — How Schwab’s live events have evolved from primarily attracting active traders to drawing equal numbers of long-term investors seeking to use options for income generation and risk management—a major shift in just 18 months.
- The education engine behind today’s options traders — A look at Schwab’s massive education effort: 30–35 hours of live webinars per week, extensive on-demand courses and articles, and 22–24 live events per year—all completely free to clients.
- Inside the numbers — Why Schwab’s position as the industry leader—averaging 7+ million trades daily—makes their client-behavior insights uniquely valuable for understanding real market trends.
- Investors vs. traders: why the label doesn’t matter — Why James believes you shouldn’t get hung up on whether you’re a “trader” or an “investor,” and how Schwab supports both ends of the spectrum with specialized desks and resources.
- 24/5 trading: powerful tool or dangerous temptation? — The real pros and cons of extended-hours and 24/5 trading, how U.S. clients use it episodically while international clients leverage it as their primary trading window, and why trying to be “on” around the clock can work against you.
- What’s coming next for options traders at Schwab — How Schwab is preparing for spot crypto trading (first half of next year), expanded CBOE options hours (one hour earlier, 15 minutes later), and single-stock 0DTEs (expected in a Q1 launch window)—and why doing it “the Schwab way” means platforms, risk tools, and education must all be ready before launch.
- The one skill James thinks traders must develop — His biggest piece of advice: learn to adapt your strategies to changing market conditions instead of forcing one “favorite” strategy on every environment.
Guest Bio – James Kostulias
James Kostulias is Head of Trading Services at Schwab, where he oversees the end-to-end trading experience for clients, including the award-winning thinkorswim suite of platforms. With more than 25 years in financial services—much of it with TD Ameritrade in retail, technology, and active trader leadership roles—James has been at the forefront of the industry’s evolution from “options are too risky” to “options as risk management.”
He has served as a board member and former president of the Wall Street Technology Association, previously sat on FINRA’s Technology Advisory Committee, and is a graduate of the SIFMA Securities Institute program at Wharton. He holds a B.A. in Business Administration from Rutgers University along with Series 47, 24, and 63 licenses.
Resources & Links
- Schwab Q4 Trader Sentiment Survey – quarterly insights into trader sentiment, available at Schwab.com
- Schwab Trading Activity Index (STAX) – monthly insights into actual client trading behavior, available at Schwab.com
- Learn more about options education and coaching with Dan at MarketTaker.com
Disclosure:
Options involve risk and are not suitable for all investors. Prior to buying or selling an option, investors must read Characteristics and Risks of Standardized Options (ODD) which can be found at https://www.theocc.com/company-information/documents-and-archives/options-disclosure-document
Don’t trade with money you are not prepared to lose. Anything discussed on this show is intended to be generalized information and not intended to be a recommendation to buy or sell any security. The host and guests are not familiar with listeners’ specific situations. For trading information relevant to your specific needs, speak with a licensed broker or advisor.
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Tuesday Nov 04, 2025
Tuesday Nov 04, 2025
Why Traders Lie to Themselves — and How to Stop
When it comes to covered calls and cash-secured puts, most traders tell themselves comforting half-truths:
“I’d be fine owning the stock if it drops.”
“I’d be fine selling my shares if they get called away.”
But when those scenarios actually happen—when a stock gaps lower or rallies far past a strike—those same traders often panic, blame the market, and forget the plan they swore they’d follow.
In this episode, Dan Passarelli unpacks the psychology behind these lies and how to replace emotional trading with data-driven discipline. Through relatable stories (including a red-light ticket and an ancient Roman twist), Dan shows why even the smartest investors fall into the trap of self-deception—and how to break free from it.
In This Episode
- Why traders say they’re okay with assignment—but secretly aren’t
- How cash-secured puts and covered calls reveal your true comfort with risk
- The real “sweet spot” where these strategies outperform the market
- How to use data and visualization to make smarter, more objective decisions
- What mirror neurons and Michael Jordan can teach you about trading mastery
- How to “outhuman your humanness” by training your brain to respond with logic instead of emotion
Key Takeaway
You can’t control the market—but you can control how you react.
When you make trading decisions based on logic and data, not emotion or ego, you gain a consistent edge. Covered calls and cash-secured puts might not make you rich overnight—but they can help you steadily outperform by losing less when others panic.
Subscribe & Support: WealthBuildingPodcast.com — Get access to video extras, subscriber-only trade ideas, Dan’s real covered call and cash-secured put trades, monthly AMAs, and unusual options activity alerts.
Disclosure:
Options involve risk and are not suitable for all investors. Prior to buying or selling an option, investors must read Characteristics and Risks of Standardized Options (ODD) which can be found at https://www.theocc.com/company-information/documents-and-archives/options-disclosure-document
Don’t trade with money you are not prepared to lose. Anything discussed on this show is intended to be generalized information and not intended to be a recommendation to buy or sell any security. The host and guests are not familiar with listeners’ specific situations. For trading information relevant to your specific needs, speak with a licensed broker or advisor.
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Tuesday Oct 28, 2025
Tuesday Oct 28, 2025
Episode 38: The Objective of My Affliction
95% of traders lose money. Not because they're not smart—but because they're missing something fundamental.
In this episode:
- What if most traders are making the same mistake with every single trade?
- What's the simple two-word framework that changes everything?
- Why don't even experienced traders understand the real secret to consistent profitability?
- What if you could improve your results overnight with one mindset shift?
This episode is short but mighty. Discover what separates the winning 5% from everyone else.
Disclosure:
Options involve risk and are not suitable for all investors. Prior to buying or selling an option, investors must read Characteristics and Risks of Standardized Options (ODD) which can be found at https://www.theocc.com/company-information/documents-and-archives/options-disclosure-document
Don’t trade with money you are not prepared to lose. Anything discussed on this show is intended to be generalized information and not intended to be a recommendation to buy or sell any security. The host and guests are not familiar with listeners’ specific situations. For trading information relevant to your specific needs, speak with a licensed broker or advisor.
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Tuesday Oct 21, 2025
Tuesday Oct 21, 2025
Summary:
Dan Passarelli sits down with coach John Kmiecik to unpack why smart traders still struggle with losses, risk, and variance—and how to reframe decisions using Prospect Theory. They cover loss aversion, the disposition effect, myopic loss aversion, “house money” mental accounting, and practical coaching tactics (like multiple exits and portfolio-level thinking) to build discipline. Dan also corrects a note from last week: neuroscientist John Coates earned his degrees at the University of Cambridge.
Key Takeaways
- Prospect Theory in practice: Most traders feel losses about twice as strongly as equivalent gains, which skews decisions if left unmanaged.
- Loss aversion shows up everywhere: Hesitating to take small losses, rolling losers “to get back to even,” and cutting winners too early.
- Myopic loss aversion: Staring at a single position and checking P&L too often leads to reactive choices; think in portfolios, not trades.
- Multiple-exit approach: Taking a small, early profit can make it psychologically easier to hold for the primary target.
- Variance desensitization: You must get comfortable with swings; focus on net outcomes over a series of trades, not tick-by-tick moves.
- Mental accounting pitfalls: “Playing with house money” is a trap—capital is capital, regardless of where it came from.
- Framing matters: “Selling a put” can be reframed as “agreeing to buy shares at a discount with volatility rebates,” then managed by plan.
- Preparedness beats FOMO: If you miss a setup, another will come. Have every “twist and turn” covered in your plan before the trade.
Practical Tools Mentioned
- Multiple-exit method: Scale out (e.g., take a small “comfort” profit, then hold for the main target).
- Portfolio-level targets: Judge results over a basket of trades, not a single outcome.
- Account hygiene: Close the P&L window when it provokes impulsive behavior.
- Pre-mortems: Visualize assignment, gaps, and management steps before you enter.
Links & Resources
- Become a paid subscriber for video extras and trade ideas: wealthbuildingpodcast.com
- Learn more about Dan Passarelli and Market Taker Mentoring: markettaker.com
About the Guest
John Kmiecik is a senior coach at Market Taker Mentoring. He works 1-on-1 with traders on strategy selection, risk management, and the psychology required to execute consistently.
Support the Show
- Subscribe on your favorite platform (Apple Podcasts, Spotify, etc.).
- Ratings and reviews help more traders find the show—thank you for spreading the word.
- This is an ad-free podcast. Paid subscriptions keep it going and unlock members-only benefits.
Disclosure:
Options involve risk and are not suitable for all investors. Prior to buying or selling an option, investors must read Characteristics and Risks of Standardized Options (ODD) which can be found at https://www.theocc.com/company-information/documents-and-archives/options-disclosure-document
Don’t trade with money you are not prepared to lose. Anything discussed on this show is intended to be generalized information and not intended to be a recommendation to buy or sell any security. The host and guests are not familiar with listeners’ specific situations. For trading information relevant to your specific needs, speak with a licensed broker or advisor.
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