Wealth Building With Options

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Wealth Building With Options episodes

August 12, 2025Ep27 - Frickin’ Hulu
In this episode of Wealth Building with Options, Dan Passarelli opens with a hilarious rant about Hulu's "double dipping" business model—charging subscribers AND showing ads—which becomes the perfect metaphor for today's topic: covered strangles and covered straddles. These underused strategies allow options traders to "double dip" by collecting premium from both calls and puts, creating excellent opportunities for wealth builders willing to embrace a more sophisticated approach.
Key Takeaways:
The Double-Dip Concept
Just like Hulu gets paid by subscribers AND advertisers, covered strangles let you collect premium from both selling calls and selling puts
You're getting two income streams from a single underlying position, though only one option can be assigned
Dan shares a real trade he placed
What is a Covered Strangle?
A 3-part position: Own 100 shares + sell an out-of-the-money call + sell an out-of-the-money cash-secured put
Perfect for long-term value investors: "Buy more if the stock goes lower, sell if it goes higher"
Warning: You risk doubling your position (200 shares) if assigned on the put
Real-World Example: American Eagle Outfitters (AEO)
Stock at $10.96, sold $11 calls for $1.80, sold $9 puts for $1.00
Total premium collected: $2.80 (over 25% of stock price!)
Massive profit zone: Stock can trade anywhere from $8.58 to $13.80 and you still win
That's nearly a 50% range where the strategy is profitable
Why These Strategies Work
Theta is King: Time decay works in your favor on both options
Range-Bound Stocks: Perfect for "boring, sideways" stocks that stay in wide ranges
Long-Term Approach: Often uses LEAPS (6+ months) for maximum time premium collection
Covered Strangle vs. Covered Straddle
Strangle: Different strikes (out-of-the-money call and put) - more conservative
Straddle: Same strike price - more aggressive, always has one option in-the-money
Find out what Dan prefers for flexibility and risk management
The "Set It and Forget It" Management Style
The Thanksgiving Turkey Approach: Check monthly, not daily - let theta do the work
Immediate GTC Orders: As soon as filled, Dan places good-til-cancelled orders to buy back
Only Trade on Fundamentals: Don't make changes based on mood - only for significant company news
Advanced Techniques
Split-Time Strangles: Different expiration dates for calls and puts when legging into positions
Ratio Variations: Dan's current trade uses 20 puts vs. 1 call for enhanced income generation
Liquidity Requirements: Tight bid/ask spreads essential - this strategy doesn't work with wide markets
Critical Success Factors:
When to Use This Strategy
You genuinely want to own more shares if the stock drops
You're comfortable selling your shares if the stock rises significantly
The stock has strong support levels and reasonable valuation
Options have tight bid/ask spreads and good liquidity
Risk Management
Understand you're adding risk, not truly "covering" it (Dan calls the name misleading)
Be prepared for potential assignment on either side
Only use on stocks you'd be happy to double down on
Avoid if you think the stock might "explode" higher
Why Dan Loves This Strategy
"Perfect for value investors" - aligns buying and selling with valuation
Excellent for takeover candidates with strong support levels
Can generate 25%+ returns in sideways markets
Works especially well on lower-priced stocks due to volatility skew
The Bottom Line
Covered strangles and straddles aren't everyday strategies, but when market conditions align, they can be "freaking amazing." The key is patience, proper stock selection, and treating them like long-term investments rather than short-term trades.
Dan's Reality Check: "This is a very, very niche strategy... but for the right set of circumstances, gosh man, this can be really, really amazing."
Exclusive Content for Subscribers
Paid subscribers get video walk-throughs of P&L diagrams for these complex strategies - essential for visualizing how these trades work. As Dan notes, "It's an audio-only podcast, so that's really the only way I can show you how to do this."
Join the Community
Help grow the wealth-building community by:
Subscribing on your favorite podcast platform
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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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48 min
August 05, 2025Ep 26 - Interview with Options Thought Leader, Andrew Lowenthal
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
Subscribe & Support
Enjoying the podcast? Help support the show and access exclusive content:
Video walk-throughs of real trades
Subscriber-only stock breakdowns
Covered call & cash-secured put trades from Dan’s own account
Live monthly Ask-Me-Anything webinars
Join here: wealthbuildingpodcast.com
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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38 min
July 29, 2025Ep25 - Party Like A Pachyderm
In this episode, Dan explores the strategic rationale behind trading long-term buy-writes, even when they offer lower theta compared to shorter-term options. While conventional wisdom might suggest optimizing for higher theta, Dan lays out a compelling case for why going long may actually lead to more consistent, reliable results—especially when thinking like an investor rather than a trader.
What You’ll Learn
Short-Term vs. Long-Term Buy-Writes:
How these similar-looking strategies differ substantially in execution and outcome.

Why Theta Isn’t Everything:
Dan explains why he sometimes sacrifices short-term theta to gain longer-term predictability and more investor-style returns.

The Tomato vs. Tomatillo Analogy:
A lighthearted but powerful metaphor showing how two strategies that look the same can behave very differently.

The Case Study: AEO (American Eagle Outfitters):
A real-life example of a long-term buy-write trade:
Entry at $10.96
Selling Jan 2026 $11 calls for $1.80
Breakeven: $9.16
Static return: 16.4%
If-called return: 16.8%
Annualized return: 26.2%

Understanding Volatility Over Time:
Why longer-term predictions can be more reliable due to how volatility “smooths out” over time.

Framing Buy-Writes Like Interest-Bearing Assets:
Dan explains how viewing these positions like CDs or bonds (despite their risk) helps him stay grounded as a long-term investor.
The Role of Interest Rates in Longer-Term Options:
How rising interest rates affect call pricing and open up opportunities to sell higher strikes at compelling premiums.
Key Takeaways
Long-term buy-writes may offer lower theta, but they provide better downside protection, reduced maintenance, and can function more like an investment than a trade.
Annualized return is a helpful—but sometimes misleading—lens. Use it to evaluate risk-adjusted opportunity but avoid relying on it to boost ego.
Selling slightly higher strikes in today’s interest rate environment can lead to “best of both worlds” scenarios with solid premium and upside potential.

Mentioned In This Episode
Ticker: AEO – American Eagle Outfitters
Concepts: Theta, Volatility Cone, Annualized Return, Interest Rates & Rho, Covered Calls, LEAPS
Tool: Thinkorswim

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Shout-Outs
Special thanks to supporters including Alex H., Bill H., Paul P., Sean K., Steve D., Myron, Glen K., Spencer, and many others. Your backing keeps the show running and the content flowing.
Next Episode Preview
Dan welcomes a special guest to talk about a powerful addition to the buy-write strategy discussed today. Don't miss Episode 26!
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
July 22, 2025Ep24 - Commitment Issues
"There's the kind of stock you date, and the kind of stock you marry."
In this episode of Wealth Building With Options, Dan explores what it means to have "commitment issues"—not in relationships, but in trading. Sometimes you don't want to marry a stock for life. You just want to take it for a profitable spin while managing your risk. That's where short-term buy-writes shine.
What You'll Learn:
The psychology behind "dating" vs. "marrying" stocks—and why everything is impermanent
When short-term buy-writes outperform buy-and-hold strategies
How to evaluate opportunities when you like the fundamentals but don't fully trust the stock
The "money lying in the corner" approach—waiting for exceptional premium opportunities
Why 3 weeks to 2 months is the sweet spot for short-term buy-writes
Three exit strategies at expiration: roll, close, or accept assignment
The three-way analysis method: always consider multiple approaches to any opportunity
Real Trade Breakdown:
The Perfect Setup: Dan walks through a $30 stock example where you can capture a 5% out-of-the-money call for 3% premium—creating potential 8% monthly returns (96% annualized when opportunities align).
Okta (OTA) Case Study: How Dan rolled from a covered call assignment at $98 into cash-secured puts at $96, then down to $95 strikes, capturing $2.15 in additional premium while positioning for better entry points.
Rigetti (RGTI) Quantum Play: A speculative quantum computing stock offering 10%+ monthly premiums—demonstrating how to play the "sweet spot" of risky stocks using short-term strategies.
Key Insights:
Log-normal distribution reality: Most individual stocks actually lose money over time (despite the S&P 500's 10% annual average) because index committees actively select winners
Annualized returns truth: While 8% monthly sounds like 96% annually, you can't always replicate perfect setups—but the math still provides valuable baseline comparisons against risk-free rates
Gap risk management: Why Dan prefers closing entire positions on expiration day rather than letting calls expire
Value vs. speculation balance: How to capture meaningful premiums on stocks with mixed fundamentals
The Bottom Line:
Short-term buy-writes let you profit from stocks you like but don't fully trust, capturing meaningful premiums while maintaining clear exit strategies. Perfect for traders who prefer calculated risks over permanent commitments—and smart enough to know that in trading, as in life, everything is temporary.
Support the Show: Love the podcast? Share it with a friend, leave a review, and consider a paid subscription on Substack (https://wealthbuildingwithoptions.substack.com) to access bonus episodes, detailed trade breakdowns, and monthly AMAs.
Subscribe now so you don't miss Episode 25—another masterclass in confident, systematic trading is coming your way.
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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43 min
July 15, 2025Ep23 - The Day I Bit The Nurse
In this episode, Dan shares a hilarious childhood story (yes, he did bite a nurse) and takes a nostalgic look at Highlights magazine to set up a powerful trading lesson about spotting subtle—but meaningful—differences between two nearly identical options strategies: the buy-write and the cash-secured put.
Both strategies aim to acquire stock and generate income, and from a risk-reward standpoint, they appear almost interchangeable. But when you look closely—like Gallant and Goofus in Highlights—you’ll find key differences that can impact commissions, dividends, interest, mindset, and how you manage risk.
What You’ll Learn in This Episode
A humorous childhood story that leads to a serious insight about how traders interpret similar setups differently
The key mechanical difference between a covered call and a buy-write
How a buy-write compares to a cash-secured put in terms of:
Maximum profit
Break-even price
Commissions
Option Greeks (Delta, Vega, Theta)
Dividends and interest impact
Mental framing and trade psychology
Why buy-writes often look better on paper—but might not always be the better choice
How your broker's assignment and commission policies could tilt the scales
Why dividend-paying stocks may favor buy-writes over cash-secured puts
The one question to ask yourself that might matter more than the math: How do I think about this trade?
Key Takeaways
A buy-write = Buy stock + Sell call (same time, same trade ticket)
A cash-secured put = Sell put with cash reserved to buy shares if assigned
Both trades are synthetically similar—but taxes, dividends, mindset, and fees can make a meaningful difference
The mental framing of a trade might be the most important variable of all
Sometimes, “spotting the difference” is the key to making the right strategic decision
Subscribe & Support
Enjoy the show? Share it with a fellow investor
Subscribe to get future episodes on short-term vs. long-term buy-writes
Want deeper dives and trade breakdowns? Support the show with a paid Substack subscription and you'll also get access to the video extras: wealthbuildingwithoptions.substack.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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40 min
July 08, 2025Ep22 - "Hey Butthole"
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:
The infamous “Hey Butthole” trading floor story—and what it teaches about real-world trading
Why a trader’s “172” call position wasn’t an error—it was a lesson in synthetics
The delta-neutral mindset of market makers and how it unlocks synthetic thinking
Covered calls vs. cash-secured puts: Why they’re synthetically identical (and when they’re not)
Understanding put-call parity and its real-world implications
The Greeks of synthetics: Delta, Theta, and the messy role of interest and early exercise
How professional traders use synthetic stock, conversions, reversals, and synthetic straddles
When a put and a call add up to more than 100 delta—and what that means
How synthetics help you manage vertical spreads, identify arbitrage, and reduce capital requirements
Why thinking in terms of synthetics leads to smarter, more flexible trading decisions
Why It Matters:
Understanding synthetics isn’t just academic—it’s foundational. If you truly grasp this concept, you’ll:
Trade covered calls and cash-secured puts with more confidence
Identify hidden equivalencies across strategies
Improve capital efficiency and decision-making
Spot arbitrage and mispricing opportunities others miss
Quote of the Episode:
“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.”
Don’t Miss:
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.
Resources & Links:
Trading Option Greeks – by Dan Passarelli
Join the community at WealthBuildingWithOptions.Substack.com for bonus episodes, trade breakdowns, and monthly AMAs
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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43 min
July 01, 2025Ep21-The Edge of Reason: And the Reason for Edge
In this episode of Wealth Building with Options, host Dan Passarelli explores one of the most powerful, yet often overlooked, concepts in successful trading: edge. Whether you're seeking an advantage like a card counter at the blackjack table or building consistency through disciplined investing, edge—the measurable statistical advantage—is what separates consistent winners from the rest.
What You'll Learn in This Episode:
What edge really means in trading and how even a small edge can compound into powerful long-term results
The three primary sources of edge every options investor needs to understand:
Fundamental analysis (PE ratio, price-to-book, operating yield, current ratio)
Technical analysis (support, resistance, moving averages, volume)
Volatility analysis (historical vs. implied volatility, vertical skew, term structure)
How smart investors use support and resistance levels to improve strike selection and time their trades more effectively
Why volatility pricing can create opportunity if you know how to spot overpriced or underpriced options
A practical framework for setting strike prices and choosing expirations for covered calls and cash-secured puts
Dan also shares stories from the trading floor and insights from professional mentors, blending theory with real-world examples in a way that brings clarity to complex topics.
Resources Mentioned:
The Intelligent Investor by Benjamin Graham
Buffettology by Mary Buffett
How to Read a Financial Report by John and Tage Tracy
Final Thoughts:
Even a 1–2% edge can significantly improve your trading outcomes—especially when compounded over time. Dan explains how mastering these analytical tools can help you trade more confidently and profitably, while avoiding common mistakes.
Subscribe to the show to catch Episode 22, where Dan dives deep into buy-writes and how to maximize capital efficiency using this foundational strategy.
To support the show and get access to exclusive episodes, trade breakdowns, and AMAs, visit:
wealthbuildingwithoptions.substack.com
To learn more about Dan Passarelli and the Market Taker Mentoring community, 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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48 min
June 24, 2025Ep20 - Square, Level and All Effed Up
Description:
You wouldn’t build a garden without a plan (or at least you shouldn’t). And you sure as heck shouldn’t place a covered call or cash-secured put without knowing exactly why you’re doing it.
In this episode, Dan shares a hilariously frustrating story about building a backyard garden with his daughter — and how forgetting one small measurement led to a big headache. Then he breaks down how that same mistake shows up in options trading when traders skip the fundamentals and just “wing it.”
Covered calls and cash-secured puts might seem simple — but if you’re not following this checklist, you’re likely doing it wrong. This episode gives you the must-follow framework to avoid costly errors and start trading with clarity and confidence.
You’ll Learn:
The only two valid reasons to place a covered call or CSP — and why anything else is a red flag
Why stocks under $30 are usually a waste of time for income strategies
What the “10% Rule” is — and how it instantly tells you if your option is tradable
How to use theta and “aggregate theta” to maximize your returns over time
The rookie mistake traders make by ignoring volatility events like earnings (and how to avoid it)
Key Insight:
“You don’t get to think outside the box until you know what’s inside it.”
Don’t Miss:
Dan’s “Nail the Trade” checklist — the same system he’s been refining for 8+ years
Why implied volatility isn’t always make-or-break — and when it is
How to line up your trade with your actual investing plan, not just what “looks good”
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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38 min
June 17, 2025Ep19- The Triple Lindy and Making a Big Splash
In this episode of Wealth Building with Options, Dan dives deep into the three critical criteria for selecting the best strike and expiration when selling cash-secured puts:
Support levels
Theta (both straight and aggregate)
Implied volatility and skew
Dan breaks down the logic behind what makes these factors so valuable—especially for investors who want to either generate premium or strategically acquire stock. He shares some "campfire knowledge" and real-world tactics that go far beyond theory and into practical application.
Dan is joined by John Kmiecik, who shares how he guides students to find optimal support levels using multiple timeframes, how he filters out the chart “noise,” and what technical indicators (like RSI and moving averages) may or may not be worth your time.
Whether you're trying to invest more confidently or fine-tune your entry points, this episode will give you a sharper lens for executing cash-secured put strategies like a pro.
What You’ll Learn
Why support lines are crucial for choosing put strikes—and how to spot them using multiple timeframes
The difference between straight theta and aggregate theta—and how both affect decision-making
How to evaluate weekend theta and avoid the trap of holding options through unnecessary decay
Why volatility skew (vertical and horizontal) matters when selecting expirations and strikes
How to think in terms of 7-day decay periods to uncover the best value across different expirations
Why trading doesn’t have to be overcomplicated—and how to eliminate the noise from your charts
Memorable Quotes
“Some of this is campfire knowledge... but a lot of it is what I’ve learned from trading for decades.” — Dan Passarelli
“Support and resistance have made it through thick and thin with me. I’ve divorced a lot of technical indicators, but I’m still married to support.” — John Kmiecik
“It’s not just about the flat theta number—it’s about knowing what that number really means over time.” — John Kmiecik
Resources & Extras
Video Extra: Visual breakdown of straight vs. aggregate theta (available to premium subscribers)
Characteristics and Risks of Standardized Options (Options Disclosure Document)
Subscribe for bonus content at wealthbuildingwithoptions.substack.com
Subscribe & Share
Don’t miss future episodes—subscribe on your favorite podcast app.
And if you found this episode helpful, share it with a fellow investor. The more we learn together, the more we grow.

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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53 min
June 10, 2025Ep18 - Chewing the Fat About Meat and Tasty Chicken Feet
In this episode, Dan Passarelli dives deep into the strategy that many investors think they understand — but often get wrong: cash-secured puts. While most investors learn to sell puts early in their options journey, few truly master the nuance and mindset that separate solid trades from subtle mistakes.
Dan unpacks the six core guidelines for executing high-quality CSPs, shares his personal evolution from skeptic to strategist, and reveals how most investors fall into the “time bomb strategy” trap — and how to avoid it.
But that’s not all…
He also takes us on a culinary detour through Icelandic puffin, Chinese chicken feet, and even donkey meat. It’s all part of the journey toward investing maturity — and yes, maybe building some collagen while we're at it.
Later, frequent guest and coach John Kmiecik joins the conversation to challenge common myths, like the "sweet spot" of the 30 delta put and why most investors choose strikes that are too conservative — even when they say they want to be assigned.
In This Episode:
Why cash-secured puts aren’t as “simple” as they seem
The six guidelines that will instantly improve your CSP trades
Why objective is everything: Are you skating or trading?
How investors sabotage themselves with backtesting myths
The real risk of selling far OTM puts (it’s not what you think)
How fundamentals like book value and tangible book value shape CSP decisions
Why most new investors don’t really know if they want to be assigned
A sneak peek into John’s technical approach for CSPs — coming in Episode 19
Key Insight:
“Cash-secured puts are the meat and potatoes of options trading — but to get the flavor right, you need more than just the recipe. You need the right mindset, the right tools, and the right objectives.”
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Resources:
Learn more about your host at MarketTaker.com
Read: The Characteristics and Risks of Standardized Options PDF

Next Time:
Join us for Episode 19 where John returns to dig into technical analysis for cash-secured puts — and how it fits into a full-spectrum edge-based 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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50 min

About Wealth Building With Options

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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…