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.