August 05, 2025

Ep 26 - Interview with Options Thought Leader, Andrew Lowenthal

37 minutes

A candid conversation with one of the options industry’s most influential figures, tracing the explosive growth of the options market, the evolution of strategies like covered calls and cash-secured puts, and what’s ahead for global adoption.

Key Takeaways

From 1983 to 2025: Andy shares how a fractions test in the Chicago Board of Trade building launched his 40-year career with CBOE Global Markets.

Explosive Growth: The options industry has grown from 10M to 55M contracts traded daily in under a decade—an incredible expansion in both volume and notional value.

Flex Options Uncovered: Andy gives a deep dive into Flex Options, their origin, how they provide customizable hedging, and why they’re now essential for ETFs and institutional strategies.

The Power of Education: Andy reflects on how CBOE’s early commitment to education—like the Options Institute—laid the foundation for modern retail adoption.

Global Footprint: Andy helped launch and develop options markets around the world—from Kuala Lumpur and Prague to London and Singapore.

Retail’s Rising Role: Once just 1-2% of all accounts, retail options trading has surged thanks to technology, accessibility, and self-directed broker platforms.

Covered Calls & Cash-Secured Puts: Asset managers and advisors increasingly use these foundational strategies, not just for yield, but for smarter portfolio construction.

Benchmarks & Innovation: Dan and Andy discuss CBOE's development of benchmark indexes like BXM and PUT, which paved the way for modern ETF strategies and institutional replication.

New Frontiers: Andy shares his work with Adaptive Financial—a fintech platform that uses software to analyze portfolios and generate index option-based trades.

Trading for Fun: In retirement, Andy has turned to more personal trading, refining his exit strategy and embracing the learning curve of options firsthand.

Quotes to Remember

“Options are the one tool that lets you express your market view—up, down, sideways, or on timing—however you see fit.”

— Andy Lowenthal

“The exit determines if you make money. Getting into the trade is the easy part.”

— Dan Passarelli

Topics Covered

Early trading floor culture and open outcry

The rise of hybrid and electronic systems

International exchange development (Prague, Malaysia, Brazil, more)

The explosion in options education and retail access

Flex options and ETF adoption

Covered calls, cash-secured puts, and benchmark indexes

Software-driven portfolio optimization with index options

Exits, edge, and trading as a lifelong skill

Featured Mentions

CBOE Global Markets

Adaptive Financial Solutions

Wilson Innovators

Options Institute

Risk Management Conference (CBOE)

Benchmark Indexes: BXM, PUT

Flex Options and Buffer ETFs

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Thanks to Our Paid Subscribers

A special shoutout to:

Sean K, Steve D, Nanan, Glen K, Jane (our newest!), Alex H, Bill H, VJ, Paul P, Myron, Mark, Spencer, John D, Douglas B, Ed B, Christopher L, Deborah, and Eric G.

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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