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 i...
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.
Disclaimer: Options involve risk and are not suitable for all investors. Read the Characteristics and Risks of Standardized Options before trading. https://www.theocc.com/getmedia/a151a9ae-d784-4a15-bdeb-23a029f50b70/riskstoc.pdf
To learn more about Dan Passarelli and Market Taker Mentoring, visit MarketTaker.com.
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