Wealth Building With Options

Wealth Building With Options

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Wealth Building With Options episodes

  • Ep 17- Seasonality, Cycles & the Calendar Edge with Jeffrey Hirsch Editor-in-Chief of the Stock Trader's Almanac

    Dan Passarelli is joined by Jeffrey Hirsch, editor-in-chief of the Stock Trader’s Almanac, to talk seasonality, market cycles, and the powerful edge of timing your trades around historical patterns. From family legacy to tactical trade execution, Jeff breaks down how decades of research—plus some good old-fashioned intuition—can give traders a powerful boost.

    What You’ll Learn in This Episode:

    • Why "Buy in October and get your portfolio sober" might be better advice than “Sell in May and go away”
    • The most reliable fundamental metric for selecting value stocks
    • How Jeff’s family legacy shaped the Stock Trader’s Almanac—and how he came to embrace it
    • The surprising consistency of intraday trading patterns in a high-frequency world
    • Using seasonality with options: When to sell puts and calls for maximum edge
    • The power of the “best six months” and how to trade them with covered calls
    • Seasonal volatility trends—especially around August through October
    • Insights into election year cycles and how political shifts affect markets
    • A personal side of Jeff Hirsch: music, Broadway, and producing a musical inspired by The Elephant Man
    • Featured Guest:

      Jeffrey Hirsch
      Editor-in-Chief, Stock Trader’s Almanac
      Market historian, strategist, and student of behavioral finance

      Resources Mentioned:

      • Stock Trader’s Almanac
      • Learn more about Dan Passarelli and Market Taker Mentoring at MarketTaker.com
      • Subscribe & Share:

        If you found this episode valuable, help us grow the Wealth Building With Options community:

        Subscribe on your favorite podcast app

        Share with a fellow trader
        Leave us a 5-star review to let others know this show helps real investors get real results

         

        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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        39 min
      • Ep16 - OG CC Setups (part II)

        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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              46 min
            • Ep15 - OG CC Setups (part I)

              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
                • Join the Community

                  Enjoying the podcast? Help grow the community:

                  • Share the podcast with other traders
                  • Subscribe in your favorite podcast app
                  • Leave a review to support the show
                  • Join the Wealth Building With Options Substack at https://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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                    42 min
                  • Ep14 - Greek Geekery and Skewed Truth

                    Episode Summary:

                    In this episode, Dan dives into one of the most misunderstood aspects of options trading: the Greeks — and more importantly, where the real edge in trading actually comes from. Contrary to what many novice traders believe, theta is not the edge. The real advantage lies in volatility and skew.

                    With practical examples and 30 years of trading experience, Dan breaks down how delta works, why traders often misinterpret theta, and how cash-secured puts and covered calls use volatility pricing to your advantage.

                    In This Episode, You’ll Learn:

                    • Why theta is not a reliable trading edge, despite popular belief
                    • How delta works in directional trading and how to simplify its meaning
                    • The true nature of short puts and why they behave like bullish stock positions
                    • How risk premium gives option sellers an advantage
                    • Why options behave like insurance policies — and how that helps traders
                    • What volatility skew is and how to recognize it
                    • How covered calls and cash-secured puts benefit from implied volatility mispricing
                    • Key Concept:

                      Delta isn’t just a Greek — it’s the sensitivity of an option’s price relative to the underlying stock. When you understand how delta mirrors share ownership, your perspective on options changes completely. And when you understand skew, you start trading with a real edge.

                      Additional Resources:

                      To access bonus video content, trade adjustments, and subscriber-only episodes, visit:
                      wealthbuildingwithoptions.substack.com

                      Support the Show:

                      Share this podcast with fellow traders and subscribe to your favorite app so you don’t miss the next episode. A quick review or rating helps the show grow and reach more traders like you.

                      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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                      33 min
                    • Ep13 - The Golden Age of Options: A Conversation with Steven Sears

                      Episode 13 – The Golden Age of Options: A Conversation with Steven Sears

                      In this episode of Wealth Building With Options, Dan Passarelli sits down with one of the most influential voices in the options world—Steven Sears. A former senior editor at Barron’s, senior advisor to the Philadelphia Stock Exchange, and a key figure in the rise of electronic options trading, Sears brings decades of front-line experience and deep insight into how options can transform a portfolio.

                      In this wide-ranging and insightful conversation, you’ll discover:

                      • Why we’re entering a “golden age” for options—and what it means for everyday investors
                      • The power of compounding through covered calls and cash-secured puts
                      • How top professionals select stocks to complement options strategies
                      • Why managing volatility is more essential than ever in today’s market
                      • The shift from speculative trading to disciplined, process-based investing
                      • What most investors misunderstand about selling options—and how to fix it
                      • The mindset that separates consistent winners from everyone else
                      • Whether you're new to options or looking to sharpen your edge, this episode will challenge your assumptions, reframe your strategy, and inspire confidence in a smarter, steadier approach to building wealth.

                        Listen now and hear how Steven Sears sees the evolving landscape—and how you can thrive in it.

                        For more information about Dan Passarelli join him on Substack at https://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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                        46 min
                      • Ep12 - I've Reached My Limit

                        Episode Summary:

                        In this episode, Dan Passarelli breaks down a powerful trading concept: using cash-secured puts as a smarter, more strategic version of limit orders. If you've ever hesitated about assignment or second-guessed a put trade, this episode is for you.

                        Dan shares real-world stories (including a Vegas twist involving a mastermind event that… wasn’t) and psychological lessons from 7,000+ trading days. He explains why assignment shouldn’t be feared, how premium collection changes the math on your trade entries, and how traders often let emotion sabotage what could be great opportunities.

                        Later, Dan welcomes back John Kmiecik, a trading coach who’s worked with hundreds (maybe thousands!) of students on mastering this mindset. Together, they explore:

                        • Why traders often fear assignment more than they should
                        • How selling puts is like getting paid to place a limit order
                        • Real trading examples from John (including his recent strategy with Comcast)
                        • The psychological traps that can derail traders — and how to avoid them
                        • Tactical advice for identifying price levels where you're truly comfortable owning stock
                        • Key Takeaways:

                          • Assignment isn’t failure — it's part of the plan when using puts to enter stock positions.
                          • Cash-secured puts can lower your effective purchase price, even without assignment.
                          • Psychology is everything. Fear, regret, and hesitation often cost more than any bad trade.
                          • A put that doesn’t get assigned? You still keep the premium. That’s the hidden win.
                          • Planning your response before you enter a trade is the key to long-term consistency.
                          • Next Steps: 

                            • Subscribe to Dan’s Substack, https://wealthbuildingwithoptions.substack.com for Video Extras, trade recaps, and monthly AMA sessions.
                            • To work with Dan and John you can connect with them at Markettaker.com
                            • Options involve risk and may not be suitable for all investors. Read Characteristics and Risks of Standardized Options before investing. https://www.theocc.com/getmedia/a151a9ae-d784-4a15-bdeb-23a029f50b70/riskstoc.pdf
                            • 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
                            • Ep11- Cash-Secured Puts: The Brother from Another Mother

                              In this episode, Dan dives into a powerful but often misunderstood options strategy: the cash-secured put. Often considered the sibling of the covered call, this strategy blends the best of investing discipline with the premium-collecting power of options trading.

                              What You’ll Learn:
                              • Why Dan used to hate cash-secured puts—and what changed his mind

                              • How selling puts can feel like setting a “limit order with benefits”

                              • The psychology behind financial freedom and higher-frequency trading

                              • The critical difference between trading and investing mindsets

                              • When assignment is part of the plan (and how to make that work for you)

                              • Key mechanics of the trade: risk, reward, and break-even calculations

                              • Real-life example: selling puts on WXYZ (Wanda’s Extra Yarn & Zippers Inc.)

                              • Why many traders stress less with cash-secured puts than with covered calls

                              • Special Segment:

                                Dan brings on options coach John Kmiecik to talk about:

                                • How traders use cash-secured puts in one-on-one coaching sessions

                                • Why this strategy might be less stressful than covered calls

                                • How to manage trades if you don’t want to be assigned

                                • The role of sizing, account value, and portfolio allocation when using this strategy

                                • Common pitfalls like averaging down without a plan

                                • Bonus for Subscribers:

                                  Paid subscribers get access to:

                                  • Video extras that break down P&L diagrams for cash-secured puts

                                  • Real trade examples from Dan’s IRA

                                  • Monthly Ask Me Anything sessions and more

                                  • Subscribe on Substack at:

                                    wealthbuildingwithoptions.substack.com

                                    Key Quote:

                                    “Cash-secured puts aren’t just trades — they’re a mindset shift. They’re how investors say, ‘I’ll buy the stock… but only at my price.’”

                                    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
                                  • Ep10 - Jumping into the Deep End of Covered Calls with Russell Rhoads

                                    Episode Summary:

                                    In this special episode, Dan Passarelli is joined by longtime friend and options expert Russell Rhoads—Associate Clinical Professor at Indiana University, former CBOE educator, and seasoned trader. They dive deep into real-world options education, covering everything from teaching college students about derivatives to building structured outcomes with options.

                                    Topics Covered:

                                    • Why concepts matter more than complex math when teaching options

                                    • Covered calls and cash-secured puts as strategic investing tools

                                    • How to use implied volatility (IV) and the at-the-money straddle for strike selection

                                    • Surprising insights from Russell’s backtest on covered call strategies during earnings weeks

                                    • The evolving perception of options in retail vs. institutional circles

                                    • Understanding the VIX term structure and what today’s flat curve might be signaling

                                    • How to “become the issuer” of your own structured product using options

                                    • Why selling options—especially in calm markets—can give you the edge

                                    • Tips for navigating earnings season with confidence

                                    • Key Takeaways:

                                      • A consistent covered call strategy can outperform buy-and-hold—especially if you exit during earnings weeks

                                      • The at-the-money straddle is a powerful, underused tool for estimating expected moves and timing trades

                                      • Retail traders can learn to structure their own risk and reward profiles, just like institutional structured products

                                      • The VIX futures term structure reveals market uncertainty—and today's unusual flat curve might be a red flag

                                      • Guest Bio:

                                        Russell Rhoads is an experienced options educator, researcher, and practitioner. He teaches at Indiana University’s Kelley School of Business and consults with financial exchanges. Previously, he was the Director of Education at the CBOE’s Options Institute.

                                        Resources Mentioned:

                                        • Learn more about Dan: MarketTaker.com

                                        • For options disclosures: Characteristics and Risks of Standardized Options (PDF)www.theocc.com/getmedia/a151a9ae-d784-4a15-bdeb-23a029f50b70/riskstoc.pdf
                                        • Subscribe & Review:

                                          Don’t miss the next episode, “Cash-Secured Puts: The Brother from Another Mother” – Subscribe now and leave a review to help grow the Wealth Building With Options community!

                                          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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                                          47 min
                                        • Ep9 - Effing Around and Finding Out Why Covered Calls Work

                                          Welcome back, Wealth Builders! In this episode, Dan Passarelli takes a deep dive into why covered calls continue to outperform the market over time—but only when done right. If you've ever wondered what gives covered calls their edge, this is your episode.

                                          Key Topics Covered
                                          • The Truth Behind Covered Calls: Why the strategy works statistically—but why most investors still fail with it.

                                          • The Option Greeks Breakdown:

                                            • Delta (directional sensitivity)

                                            • Theta (time decay)

                                            • Vega (volatility sensitivity)

                                            • The Hidden Edge: Risk Premium: How options have historically been overpriced since the 1987 crash, and how sellers can benefit.

                                            • Volatility & Market Inefficiency: A critique of the Efficient Market Hypothesis and what it means for options traders.

                                            • Why Repetition Matters: The compounding edge of consistently selling covered calls over time.

                                            • Guest Interview: Henry Schwartz, VP of Market Intelligence at Cboe Global Markets, shares expert insights into the structural reasons options tend to be overpriced and how sellers can harness that edge.
                                            • “The price one can sell an option for is greater than the value it adds. That’s the whole magic of covered calls.” – Dan Passarelli

                                              Free Gift: Covered Call Strategy Guide

                                              Leave a review on Apple Podcasts, Spotify, or wherever you listen.

                                              Then:

                                              1. Take a screenshot of the review.

                                              2. Post it to our Substack or on social media.

                                              3. Use the hashtag #WBWO.

                                              4. And we’ll send you Dan’s Covered Call Strategy Guide for free!

                                                Mentioned in This Episode
                                                • Dan’s book: Trading Option Greeks

                                                • Black-Scholes Model origins

                                                • Ken Griffin’s early arbitrage trades at Harvard

                                                • University of Chicago’s Efficient Market Theory

                                                • CBOE Global Markets and options data insights - https://go.cboe.com/l/77532/2025-02-13/flrl76/77532/1739470545lScFNDr9/State_of_Industry_January_2025_NEW.pdf
                                                • Tools for Traders
                                                  • Learn more about Dan at MarketTaker.com

                                                  • Subscribe to our Substack Newsletter https://wealthbuildingwithoptions.substack.com

                                                  • Follow Dan on social media
                                                    • Instagram-https://www.instagram.com/markettakermentoring/
                                                    • YouTube-https://youtube.com/markettakermentoring
                                                    • Twitter-https://twitter.com/Dan_Passarelli
                                                    • Facebook- https://www.facebook.com/markettaker
                                                    • Don't miss Episode 10 with a very special surprise guest—someone with game-changing insight into options trading that you won’t want to miss.

                                                      Until then...

                                                      Invest excellently.

                                                      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.  

                                                      Trumpet

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                                                      51 min
                                                    • Ep8 - They Lied to You! (Not) Why Covered Calls Work
                                                      Episode Summary:

                                                      In this eye-opening episode, Dan Passarelli challenges the common misconceptions surrounding covered calls. While most traders focus on “why” covered calls work, Dan flips the script and digs into the false narratives and misguided logic that lead investors astray.

                                                      Dan explains why some of the most popular justifications for trading covered calls are intellectually lazy—and how overlooking key factors like option pricing models and probability curves can lead to missed opportunities or unnecessary losses.

                                                      This episode lays the foundation for next week’s deeper dive into the true reason covered calls work.

                                                      Key Takeaways:
                                                      • You’ve been misled: Many reasons given for why covered calls "work" are based on flawed logic, not solid data.

                                                      • Probability ≠ Profit: High-probability trades don’t always equal good trades—context and pricing matter.

                                                      • The 3 flawed logics covered call traders often fall into:

                                                        1. The premium isn’t worth the risk.

                                                        2. Assignment means “losing money.”

                                                        3. Covered calls always add value, so trade them blindly.

                                                        4. What really matters: Understanding the options pricing model, probability curves, and the indifference point.

                                                        5. Analogy alert: Dan compares covered calls to buying a car—price must reflect value or the deal isn’t worth it.

                                                        6. Guest Insight: Henry Schwartz of Cboe Global Markets joins to share data-backed insights into how buy-write strategies are used and who’s trading them.

                                                          Featured Concepts:
                                                          • Log-normal distribution curves and probability modeling

                                                          • Indifference point explained with a $119/$122 call example

                                                          • Options pricing mechanics: volatility, time, interest rates

                                                          • How pricing impacts strategy effectiveness

                                                            Special Offer:

                                                            Leave a review for the podcast on Apple Podcasts, Spotify, or your preferred platform.

                                                            Then screenshot your review and post it to our Substack or social media with the hashtag #WBWO.
                                                            We’ll send you Dan’s Covered Call Strategy Guide PDF—free.

                                                            Resources Mentioned:
                                                            • Wealth Building With Options on SubStack-https://wealthbuildingwithoptions.substack.com/
                                                            • MarketTaker.com – Learn more about Dan Passarelli and his work
                                                            • https://www.theocc.com/getmedia/a151a9ae-d784-4a15-bdeb-23a029f50b70/riskstoc.pdf)
                                                            • Connect with Henry Schwartz and Cboe Global Markets at cboe.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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                                                              45 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…

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