Wealth Building With Options

Ep15 - OG CC Setups (part I)


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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
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      • 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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