Dan Passarelli kicks off this episode with a wild story from the trading floor—complete with Hulk-like rage and a colorful nickname—and uses it to dive deep into one of the most powerful and misunderstood ideas in options trading: synthetic positions.

This episode explores how synthetics reveal the truth about covered calls and cash-secured puts—that they are, in fact, two sides of the same coin. Dan unpacks the logic behind synthetics, the Greeks that drive them, and why understanding this can make you a sharper, more strategic investor.

In This Episode:

Understanding synthetics isn’t just academic—it’s foundational. If you truly grasp this concept, you’ll:

“If I own 100 shares and I’m short one call, that’s a covered call. If I’m short a put at the same strike—guess what? At expiration, they behave exactly the same.”

Next episode, Dan dives into buy-writes and how to use them effectively in today’s market conditions. Make sure you subscribe so you’re the first to know when it drops.

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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