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”

Be sure to read Characteristics and Risks of Standardized Options before investing with options. Options involve risk, only risk capital should be used.

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.

• 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

“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

• 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

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.

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.

• 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

“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.”

Like what you’re hearing? Help grow the Wealth Building with Options community:

1. Share the show with investors who want more confidence and control in their strategy.
2. Subscribe on your favorite podcast app so you never miss an episode.
3. Support the podcast by joining Dan’s Substack — get video extras, trade breakdowns, and exclusive AMA access.

• Learn more about your host at MarketTaker.com
• Read: The Characteristics and Risks of Standardized Options PDF

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.