Wealth Building With Options

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Wealth Building With Options episodes

July 28Ep77 - The Metrics I Use on Wheel Trades and How They Work - Part 1
Dan introduces the performance metrics he relies on to evaluate every Wheel trade. Rather than focusing on option premium alone, he explains how measuring returns correctly helps investors compare opportunities, improve decision-making and treat trading like a business. By understanding the numbers behind each trade, investors can benchmark their performance and make more informed choices over time.
Dan breaks down the calculations behind static return, annualized return, if-called return, skate return on cash and skate yield, explaining not only how they're calculated but why they matter. He also explores the psychological benefits of using objective metrics to overcome fear, avoid price anchoring and compare Wheel trades against any other investment opportunity.
Key Topics
Why every Wheel trader needs performance benchmarks
Calculating static return for covered calls
The importance of using time value instead of intrinsic value
Annualizing returns to compare investments objectively
Understanding the if-called return metric
Calculating skate return on cash for cash-secured puts
Why skate yield is one of the most powerful Wheel metrics
Comparing Wheel trades to stocks, bonds and other investments
Using metrics to overcome fear and price anchoring
Why objective data leads to better trading decisions
Key Takeaways
Measuring performance consistently is essential for improving as an investor and evaluating whether your trading outperforms alternative investments.
Static return provides a useful starting point for evaluating covered call income, but annualized returns allow meaningful comparisons across different trades and timeframes.
The if-called return helps investors understand the potential outcome when covered call shares are assigned.
Skate return on cash and skate yield offer a more accurate way to evaluate cash-secured put opportunities because they measure returns against the capital actually committed.
Objective metrics replace emotional decision-making with quantifiable risk and reward.
Annualizing returns makes it possible to compare Wheel trades with virtually any other investment opportunity.
Using performance metrics helps investors make more disciplined strike selections and avoid common psychological traps like fear of assignment and price anchoring.
Connect
Learn more about host Dan Passarelli and Market Taker Mentoring: MarketTaker.com
Get exclusive content including video trade walk-throughs, Dan's actual trades, monthly AMA webinars and more: wealthbuildingpodcast.com
Subscribe on your preferred platform and leave a review to help more traders discover the show.
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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30 min
July 21Ep76 - Covered Call Case Study
In this episode of Wealth Building With Options, Dan Passarelli walks through a real-world covered call case study using AT&T stock. Rather than focusing on theory, Dan explains the decision-making process behind managing a dividend-focused Wheel strategy—from entering the trade with cash-secured puts to determining when it's time to exit using covered calls.
If you've ever wondered when to sell a covered call, how to balance dividend income with option premium, or how to think like a professional options trader instead of chasing individual trades, this episode is for you.
In This Episode
Why dividend yield—not stock price—is the primary objective for many Wheel trades
How cash-secured puts can be used to acquire quality dividend stocks at attractive prices
When a covered call becomes the right tool to exit a position
The tradeoffs between in-the-money, at-the-money, and out-of-the-money covered calls
Why longer-dated options often make more sense on lower-priced dividend stocks
How Dan uses Good-Til-Cancelled (GTC) limit orders to improve covered call pricing
A practical way to estimate where the stock price needs to be before a higher-priced limit order is likely to fill
How to think about rolling covered calls when expiration approaches
Why trading in cycles helps remove emotion from individual trades
The philosophy behind being "right even when you're wrong" with the Wheel strategy
Key Takeaways
One of the biggest mistakes investors make is focusing on the current dividend yield after a stock appreciates. Dan explains why your yield is effectively locked in based on your purchase price and why rising stock prices can actually create opportunities to rotate into better income-producing investments.
This episode also dives into the practical realities of covered call execution, including commission costs, option liquidity, expiration selection, and why maximizing premium isn't always the same as maximizing returns.
Most importantly, Dan emphasizes that successful Wheel traders don't judge a trade by a single outcome. They manage positions as part of an ongoing process, continually collecting option premium while making decisions based on valuation, income opportunities, and long-term consistency.
Resources Mentioned
Build Consistent Wealth With Options by Dan Passarelli
Wealth Building With Options Paid Subscription
Monthly Ask Me Anything webinars
Real-money covered call and cash-secured put trade alerts
SMART Income Video Class
Friday Group Coaching
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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31 min
July 14Ep75 - How Our Students Trade the Wheel
Dan welcomes Market Taker Mentoring Head Coach John Kmiecik for a behind-the-scenes discussion about how real investors are using the wheel strategy. Drawing from John's experience coaching hundreds of options traders, they explore the common habits, misconceptions and breakthroughs they see from beginners to advanced traders, along with the techniques that consistently lead to better results.
They also discuss why the wheel has become one of the most popular options strategies, the psychology behind cash-secured puts vs. covered calls, the importance of understanding synthetic positions and why trade management often sets successful wheel traders apart. They also share practical advice on strike selection, technical analysis, annualized returns and building confidence with a strategy that can fit investors of nearly any account size.
Key Topics
The psychology behind cash-secured puts vs. covered calls
Understanding synthetic positions and why they matter
How annualized returns change the way investors evaluate wheel trades
Keeping the wheel strategy simple without sacrificing results
The importance of technical analysis when selecting strikes
Why trade management is the most overlooked part of the wheel
Common mistakes newer wheel traders make and how to avoid them
Practical advice for investors with both small and large account sizes
Key Takeaways
The wheel is approachable for investors of all experience levels when built around a repeatable process.
Cash-secured puts and covered calls are synthetically equivalent, but many traders struggle with the psychological differences.
Annualizing returns provides a more meaningful way to compare option trades across different expirations.
Technical analysis can improve strike selection and trade timing.
Every trade should begin with a clear plan for entry, management and exit.
Connect
Learn more about host Dan Passarelli and Market Taker Mentoring: MarketTaker.com
Get exclusive content including video trade walk-throughs, Dan's actual trades, monthly AMA webinars and more: wealthbuildingpodcast.com
Subscribe on your preferred platform and leave a review to help more traders discover the show.
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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36 min
July 07Ep74 - WWWD (What Would Warren [Buffett] Do?)
Dan explores the trade objective approach to cash-secured puts by breaking down a real Adobe trade from his own account. Inspired by Warren Buffett's well-known use of cash-secured puts, Dan demonstrates how investors can use them strategically to acquire high-quality stocks at attractive prices or generate income while waiting for the right opportunity.
Throughout the episode, Dan shares every step of his decision-making process, from evaluating Adobe's valuation and technical support levels to selecting the ideal strike price and expiration. He also explains how cumulative option premium, rolling strategies and changing market conditions influence long-term results, giving listeners a practical framework they can apply to their own cash-secured put trades.
Key Topics
Warren Buffett's approach to selling cash-secured puts
Trade objective vs. skate objective wheel strategies
Evaluating Adobe using valuation metrics and technical analysis
Selecting strike prices and expirations based on trade objectives
Using implied volatility and avoiding earnings risk
Managing trades with good-till-canceled exit orders
Understanding cumulative discount effect and effective purchase price
Rolling cash-secured puts while maintaining assignment goals
Adjusting trade objectives as market opportunities evolve
A complete case study of a real Adobe cash-secured put trade
Key Takeaways
Selling cash-secured puts can be an effective alternative to placing limit orders when you want to buy quality stocks at lower prices.
Every trade should begin with a clearly defined objective before selecting strikes and expirations.
Combining valuation, technical analysis and implied volatility can improve stock selection and option pricing decisions.
Cumulative option premium can significantly reduce your effective purchase price over multiple wheel cycles.
Rolling trades should support your long-term objective, whether that's acquiring shares or continuing to collect premium.
Trade management should remain flexible as new opportunities emerge without abandoning the overall process.
Consistency comes from following a repeatable decision-making framework rather than focusing on the outcome of any single trade.
Connect
Learn more about host Dan Passarelli and Market Taker Mentoring: MarketTaker.com
Get exclusive content including video trade walk-throughs, Dan's actual trades, monthly AMA webinars and more: wealthbuildingpodcast.com
Subscribe on your preferred platform and leave a review to help more traders discover the show.
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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37 min
June 30Ep73 - My Exact Process for Trading Covered Calls
My Exact Process for Covered Calls
Episode Summary
What separates a covered call from a consistently profitable covered call?
In this episode, Dan Passarelli walks through an actual Amazon covered call from start to finish, explaining every decision he made—from selecting the expiration and strike price to managing the trade after entry. Along the way, he introduces the PAS (Price History Anchored Strike) Indicator, the proprietary tool he developed after discovering that no existing technical indicator was designed specifically for option traders.
Rather than teaching theory, Dan breaks down his real-world decision-making process, showing how probability, technical analysis, implied volatility, theta, annualized return, and trade management all fit together inside a repeatable wheel strategy.
What You'll Discover
Why your covered call objective changes the entire trade selection process
How the PAS Indicator helps identify higher-probability strike prices
Why historical price behavior is more valuable than arbitrary delta targets
How Dan compares multiple expirations before entering a trade
The role implied volatility and theta play in covered call selection
How annualized static return influences expiration choice
Why liquidity matters more than squeezing out an extra penny
Dan's exact management plan after entering the trade
How confirmation candles help avoid premature rolls
When holding covered calls through earnings can actually make sense
Key Topics Discussed
The "Skate" Objective
Dan explains that not every covered call is designed to have shares called away. For long-term holdings like Amazon, his objective was to collect premium while keeping the shares, a goal he refers to as "skating." That objective determines every subsequent decision, including strike selection and trade management.
Why Dan Created the PAS Indicator
After searching through hundreds of existing chart indicators without finding one designed specifically for wheel traders, Dan built his own. The Price History Anchored Strike (PAS) Indicator uses historical price ranges over a defined holding period to create statistically meaningful strike levels, helping traders select strikes based on actual market behavior rather than arbitrary rules.
Amazon Covered Call Case Study
Using Amazon as the example, Dan walks through support and resistance analysis, PAS Band placement, strike selection, comparing one-week versus two-week expirations, evaluating implied volatility, theta comparisons, and annualized return calculations. The result is a complete blueprint for how an experienced options trader evaluates competing trade candidates.
Trade Management
Entering the trade is only half the process. Dan explains why he immediately enters a Good-Til-Cancelled buy order, when he rolls positions, why he waits for confirmation candles before reacting to price movement, and how he approaches passive versus active wheel management.
Covered Calls and Earnings
Many traders avoid earnings altogether. Dan explains why he doesn't always. Instead of avoiding earnings automatically, he studies previous earnings gaps, weighs the additional premium against the added risk, and evaluates whether the trade still offers a favorable edge.
Resources Mentioned
Build Consistent Wealth with Options by Dan Passarelli
PAS (Price History Anchored Strike) Indicator (https://buildconsistentwealthwithoptions.com/indicators)
Amazon covered call case study
Wheel Strategy
Memorable Quote
"I want the position, not the penny."
Key Takeaway
Successful covered call trading isn't about finding a magic delta or blindly selling premium every month. It's about developing a repeatable process built around probability, historical price behavior, clear objectives, and disciplined trade management.
This episode offers a rare look inside Dan Passarelli's actual decision-making framework, providing listeners with a practical blueprint they can use to improve their own covered call strategy.

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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28 min
June 23Ep72 - Wheel ETFs: Interview with Head Trader Rob Pascarella of the WEEL ETF
Can the Wheel Strategy be successfully packaged into an ETF?
In this episode, Dan Passarelli sits down with Rob Pascarella, co-founder of Peerless ETFs and Head Trader of the Peerless Option Income Wheel ETF (Ticker: WEEL), to discuss the creation of the first ETF designed to systematically implement the Wheel Strategy.
Rob shares his journey from engineer to portfolio manager, explains why put-selling remains largely overlooked in the ETF industry, and reveals how WEEL seeks to generate income through a disciplined, rules-based options process.
Dan and Rob also explore volatility, diversification, risk management, position sizing, and the unique challenges of managing a Wheel Strategy inside a publicly traded ETF.
Whether you're an options trader, income investor, or simply interested in how professional portfolio managers approach the markets, this conversation offers valuable insights into systematic options investing.
In This Episode
Rob's path from engineering to professional options trading
Why engineers often make effective options traders
The origin story of the WEEL ETF
Why most option-income ETFs focus on covered calls
The advantages of cash-secured put selling
How the Wheel Strategy performs in different market environments
The impact of volatility on option-income strategies
The role of diversification across sectors and expiration cycles
Why leverage can be dangerous for Wheel traders
How ETF inflows and outflows affect portfolio management
The challenge of scaling a Wheel Strategy
Lessons learned from launching and managing an ETF
The importance of mentorship, networking, and continuous learning
Key Takeaways
The First Wheel ETF
WEEL was created to bring the full Wheel Strategy into a publicly traded ETF structure, allowing investors to access a systematic options income strategy without actively managing positions themselves.
Put Selling Creates Unique Opportunities
While most option-income funds rely primarily on covered calls, WEEL incorporates cash-secured puts to potentially benefit from premium collection, downside buffers, and more flexible portfolio construction.
Process Over Prediction
Successful options trading isn't about forecasting market direction. It's about developing a repeatable process and consistently following it through different market conditions.
Volatility Is a Feature, Not a Bug
Higher volatility often creates richer option premiums. Rather than fearing volatility, Rob explains why option sellers frequently view it as an opportunity.
Diversification Matters
WEEL diversifies across sectors, expiration cycles, and position timing to help maintain multiple potential sources of option income.
Mentorship Accelerates Growth
One of Rob's biggest lessons is that seeking guidance from experienced traders can dramatically shorten the learning curve.
About Rob Pascarella
Rob Pascarella is the Co-Founder of Peerless ETFs and Head Trader of the Peerless Option Income Wheel ETF (WEEL). Together with his partner, he developed a patent-pending options income ETF designed to systematically implement the Wheel Strategy through a disciplined, rules-based investment process.
Resources Mentioned
Peerless Option Income Wheel ETF (WEEL)
The Wheel Strategy
Cash-Secured Puts
Covered Calls
PutWrite Index (PUT)
BuyWrite Index (BXM)
Connect With Dan
For more options education, trading insights, and wealth-building resources, visit MarketTaker.com.
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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51 min
June 16Ep71 - Cash-Secured Puts: Case Study of TGT Trade
Dan walks listeners through a real-world cash-secured put case study using Target Corp. (TGT) as an example. He demonstrates how to evaluate a trade from start to finish, including technical and fundamental analysis, option selection, trade execution, liquidity considerations, and management planning. The episode emphasizes that successful wheel trading is not just about understanding option mechanics, but about developing a repeatable process for finding, executing and managing high-probability trades.
Key Topics
Understanding the difference between skate objective and trade objective wheel trades
Evaluating assignment risk before entering a cash-secured put position
Using technical support levels to identify high-probability trade setups
Incorporating earnings dates and implied volatility into trade selection
Applying fundamental analysis to strengthen trade candidates
Comparing strike prices and expirations to optimize risk and return
Using the 10% liquidity rule when evaluating option markets
Cash-secured puts vs. put credit spreads and their respective risk profiles
Improving execution through effective option order “middling” techniques
Building and implementing a trade management plan, including profit targets, rolling decisions and exit criteria
Key Takeaways
Every wheel trade should begin with a clearly defined objective: Are you trying to collect premium (skate) or acquire stock (trade)?
Assignment should never be treated as an afterthought; traders should understand and plan for assignment before entering a position.
Strong cash-secured put candidates combine technical support, reasonable fundamentals, elevated implied volatility and sufficient premium.
Earnings events can dramatically change risk profiles and should be factored into expiration selection.
Liquidity matters. Wide bid-ask spreads can impact both execution quality and trade management flexibility.
The best trade is not always the one with the highest premium. Risk, probability and return on capital must all be considered together.
Entering profit-taking orders immediately after opening a position can help systematically remove unproductive risk.
Rolling should only occur when a new trade opportunity stands on its own merits and still offers a valid edge.
Traders should not roll simply to avoid taking a loss; there must be a technical or fundamental rationale supporting the adjustment.
Successful wheel traders think in terms of return on risk and long-term cycles rather than focusing on individual trades in isolation.
Connect
Learn more about host Dan Passarelli and Market Taker Mentoring: MarketTaker.com
Get exclusive content including video trade walk-throughs, Dan's actual trades, monthly AMA webinars and more: wealthbuildingpodcast.com
Subscribe on your preferred platform and leave a review to help more traders discover the show.
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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46 min
June 09Ep70 - Interview With Steve Quirk of Robinhood
Dan sits down with Steve Quirk, Chief Brokerage Officer at Robinhood Markets, for an in-depth conversation about retail investing, options trading, market behavior and the evolution of the modern trader. Steve shares insights from nearly four decades in the industry—from starting on the trading floor after the 1987 market crash to helping shape trading technology at TD Ameritrade and Robinhood. Dan and Steve discuss what successful investors do differently, why retail traders may be more sophisticated than they’re often given credit for and how options strategies like the wheel fit into a long-term wealth-building plan.
Key Topics
How retail investor behavior has evolved over the past decade
Why younger investors tend to be more aggressive and opportunity-focused
The growing influence of retail traders on market movements
Lessons from market crashes, volatility spikes and major selloffs
The wheel strategy and its role in long-term portfolio management
Short-dated options: misconceptions and practical applications
Return on investment vs. dollar-based thinking
The impact of education, optimism and discipline on trading success
Position sizing and risk management for options traders
Common mistakes new options traders make
Key Takeaways
Retail investors are often more disciplined and successful than the stereotype of “buying the top and selling the bottom” suggests.
Long-term investing discipline and consistently putting money to work remain among the strongest drivers of wealth creation.
Successful traders often combine a core investment portfolio with more active trading strategies.
The wheel strategy can be an effective long-term income and wealth-building approach when traders take the time to learn and execute it properly.
During periods of market stress, many retail investors shift toward broad-market ETFs before rotating back into individual stocks as confidence returns.
More experienced options traders tend to capitalize on high-volatility environments, while newer traders often struggle with the emotional challenges volatility creates.
Optimism, curiosity and a willingness to continue learning are common traits among successful long-term investors.
Proper position sizing is one of the most important and often overlooked elements of risk management.
Building a trading plan and sticking with it through changing market conditions is critical for long-term success.
Relying exclusively on buying far out-of-the-money options may offer attractive payoff potential, but the low probability of success makes it a difficult long-term strategy.
Connect
Learn more about host Dan Passarelli and Market Taker Mentoring: MarketTaker.com
Get exclusive content including video trade walk-throughs, Dan's actual trades, monthly AMA webinars and more: wealthbuildingpodcast.com
Subscribe on your preferred platform and leave a review to help more traders discover the show.
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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Wah Wah Wah
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37 min
June 02Ep69 - Addition by Subtraction: When NOT to Use the Wheel
Dan explores a counterintuitive idea: Sometimes the best way to use the Wheel Strategy is not to use it at all. While covered calls and cash-secured puts can be powerful tools for generating income and reducing portfolio volatility, there are market environments—particularly strong trends and low-volatility conditions—where selling options may limit opportunity more than it helps. Dan explains how wheel traders must balance collecting premium against participating in major directional moves, and why understanding market context is critical to long-term success.
Key Topics
When the Wheel Strategy may not be the right tool
The tradeoff between premium collection and upside participation
How the wheel lowers portfolio standard deviation
Managing wheel trades during strong market trends
“Intermittent darling” stocks and breakout candidates
The role of volatility in wheel profitability
Why some stocks are poor covered call candidates
Covered call accounting and performance measurement
Net Zero Rolls vs. Premium Gambit Rolls
Avoiding reference dependence in trade management
Key Takeaways
Strong trends and low-volatility environments can reduce the effectiveness of the Wheel Strategy.
Lower volatility in returns means smaller losses during declines but also smaller gains during powerful rallies.
The Wheel Strategy is designed to profit from the middle of the probability curve, not extreme market moves.
Certain stocks can remain dormant for long periods before suddenly breaking out, causing covered call writers to miss substantial upside.
When trends become stronger, option premium quality becomes increasingly important.
Wheel traders should evaluate whether the expected premium justifies capping upside potential.
A Net Zero Roll focuses on preserving option premium by extending the cycle, while a Premium Gambit Roll sacrifices option premium to preserve stock gains.
Individual wheel cogs matter less than the profitability of the overall cycle.
Successful wheel trading requires viewing stocks and volatility as two separate assets being traded simultaneously.
Long-term success comes from focusing on expected value and process rather than obsessing over individual trades.
Connect
Learn more about host Dan Passarelli and Market Taker Mentoring: MarketTaker.com
Get exclusive content including video trade walk-throughs, Dan's actual trades, monthly AMA webinars and more: wealthbuildingpodcast.com
Subscribe on your preferred platform and leave a review to help more traders discover the show.
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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Wah Wah Wah
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-- License: Attribution 3.0
41 min
May 26Ep68 - How Covered Calls Can Work Great in Trending Markets
In this episode, Dan explains how covered calls and cash-secured puts can still work in trending markets if traders understand when to roll, when to close and how to plan before the trade is ever entered. Using examples from Build Consistent Wealth With Options, he breaks down how support, resistance, premium, market regime and trader psychology all factor into managing wheel trades when the stock moves farther than expected.
Key Topics
Covered calls in trending markets
Rolling vs. closing a trade
Skate objective vs. trade objective
Using support and resistance for roll decisions
Planning management before entry
Analyst downgrades and changed outlooks
Trade cycles and wheel cogs
Reference dependence in trading decisions
Negative scalping and option premium
Volatility as an asset class
Key Takeaways
Rolling should be part of the plan before the initial option is sold.
A roll only makes sense if the new strike, premium and market setup still fit the original thesis.
Additional support or resistance can guide the next strike.
New fundamental or technical information may justify closing instead of rolling.
Traders can get anchored to old strike prices, even when those prices no longer matter.
Wheel traders are not just trading stock; they are also trading volatility.
Connect
Learn more about host Dan Passarelli and Market Taker Mentoring: MarketTaker.com
Get exclusive content including video trade walk-throughs, Dan's actual trades, monthly AMA webinars and more: wealthbuildingpodcast.com
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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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34 min

About Wealth Building With Options

From the publisher's feed

Welcome to the Wealth Building With Options Podcast with Dan Passarelli. This podcast is dedicated to making you a calm, consistent and confident options trader. Inside each episode, Passarelli, an…