Wealth Building With Options

Ep16 - OG CC Setups (part II)


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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.

        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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        Wealth Building With OptionsBy Wealth Building With Options

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