Wealth Building with Options

SPY Put Credit Spread

John Kmiecik — Wed, 02 Sep 2026 16:04:55 GMT

These SPY bull put spreads popped up on our scanner this morning. What I like about this trade idea is that the S&P 500 (or in this case the ETF) has been able to trade in a range over the last month. The ETF is currently trading just above the potential support level around the short strike (760). Many times it will rally higher off of that support lev…

Podcast

Dan Passarelli — Tue, 01 Sep 2026 13:00:00 GMT

Anytime is a good time to become a more powerful wealth builder. The Wealth Building With Options Podcast allows you to become a better investor on your terms. Subscribe to your favorite podcasting platform below or listen right here on Substack.

Ep82 - AI Prompts for Finding Stock Investments

Ep81 - Master Class on the Wheel

Ep80 - Two Guys Talking About the Wheel

Ep79 - How I Find Wheel Trade Candidates

Ep78 - The Metrics I Use on Wheel Trades and How They Work - Part 2

Ep77 - The Metrics I Use on Wheel Trades and How They Work - Part 1

Ep76 - Covered Call Case Study

Ep75 - How Our Students Trade the Wheel

Ep74 - WWWD (What Would Warren [Buffett] Do?)

Ep73 - My Exact Process for Trading Covered Calls

Ep72 - Wheel ETFs: Interview with Head Trader Rob Pascarella of the WEEL ETF

Ep71 - Cash-Secured Puts: Case Study of TGT Trade

Ep70 - Interview With Steve Quirk of Robinhood

Ep69 - Addition by Subtraction: When NOT to Use the Wheel

Video Extra Episode 69.1 Executing a Net-Zero Roll (Paid Subscribers Only)

Ep68 - How Covered Calls Can Work Great in Trending Markets

Ep67 - Why Smart Traders Stay Stuck (and What Actually Changes It)

Ep66 - Interview with Kevin “Lex” Luthringshausen from Tradier

Ep65 - Best Markets for Wheel Trades

Ep64 - Today Is the Day!

Ep63 - Poor Man’s Covered Calls

Ep62 - Managing Cash Reserves for Wheel Traders

Ep61 - Rich People Problems

Ep60 - Fear And Loathing In The Stock Market

Ep59 - We’re in the Money!

Ep58 - Predicting Assignments

Ep57 - GTCs and Birds and Bees

Ep56 - Wait. WHAT About Alice?

Ep55 - Pro Tips on Middling Markets

Ep54 - Managing Trading Expenses Like a Boss

Ep53 - Lemonade Stands and Other Moments of Trauma

Ep52 - Wheel Trades That Don’t Suck (Part II)

Ep51 - Wheel Trades That Don’t Suck

Ep50 - That Which Is Measured Is Improved

Ep50.1 Extra: Common Metrics for Wheel Trades (Paid Subscribers Only)

Ep49 - The Problem with Backtesting

Ep48 - The Wheel Strategy Resolutely

Ep47 - Not the Most Important Thing, But Important

Ep46 - Lost in Home Depot

Ep46.1 Video Extra: How to Use RSI: Hands-On Tutorial (Paid Subscribers Only)

Ep46.2 Video Extra: Analyzing Option Volatility in 3 Easy Steps (Paid Subscribers Only)

Ep45 - Abracadarium

Ep44 - Secret Sauce Stuff

Ep44.1 Video Extra: Using Fundamentals with Trade Objective to Set Strike Prices (Paid Subscribers Only)

Ep43 - How the Stock Market Works - Fundamentals

Ep42 - Interview with Denise Shull

Ep41 - That’s a Great Idea!

Ep40 - The Data: Interview with James Kostulias, Head of Trading Services, Charles Schwab

Ep39 - Liar, Liar, Pants on Fire!

Ep38 - The Objective of My Affliction

Ep37 - Prospect

Ep36 - Crossing the Red Dragon

Ep35 - This Is Your Brain on Trading

Ep34 - Kick the Road Down the Can

Ep33 - Who, What and Why

Ep33.1 Extra: Reference Guide (Paid Subscribers Only)

Ep32 - Actual Results May Vary

Ep31 - A Well-Endowed Trader with Some Issues

Ep30 - Dealers, Dispersion Trading and Payment for Orderflow: Interview with Kevin “Lex” Luthringshausen

Ep29 - The Truth Is More Profitable Than Fiction

Ep28 - I Never Said Most of the Things I Said

Ep28.1 - VX: The Wheel Binary Tree

Ep27 - Frickin’ Hulu

Ep26 - Interview with Options Thought Leader, Andrew Lowenthal

Ep25 - Party Like a Pachyderm

Ep24 - Commitment Issues

Ep23 - The Day I Bit The Nurse

EP 23.1 VX Visual Guide to Buy-Writes vs Cash Secured Puts

Ep22 - “Hey Butthole”

Ep21 - The Edge of Reason: And the Reason for Edge

Ep20 - Square, Level and All Effed Up

Ep19 - The Triple Lindy and Making a Big Splash

Ep19.1 VX: Term Structure, Aggregate Theta and Tail Skew

Ep18 - Chewing the Fat About Meat and Tasty Chicken Feet

Ep17 - Seasonality, Cycles & the Calendar Edge with Jeffrey Hirsch Editor-in-Chief of the Stock Market Almanac

Ep16 - OG CC Setups (part II)

Ep15 - OG CC Setups (part I)

Ep14 - Greek Geekery and Skewed Truth

Ep14.1 VX: Reading Delta and Theta

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

Ep12 - I've Reached My Limit

Ep11- Cash-Secured Puts: The Brother from Another Mother

EP11.1 VX: Cash-Secured Puts: Hands on with P&L Diagrams, Real Examples and Understanding Cash Reserves

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

Ep9 - Effing Around and Finding Out Why Covered Calls Work

Ep8 - They Lied to You! (Not) Why Covered Calls Work

Ep7 - The Future of Options Trading with Fidelity’s Greg Stevens

Ep6 - How Covered Calls Work

Ep6.1 VX - Drawing Covered Call P&L Diagrams

Ep5 - Options: Better Tools

Ep5.1 VX - Option Chains

Ep4 - Guest Episode: Mark Benzaquen, Principal at OCC Education

Ep3 - How Wealth is Created in the Stock Market

Ep2 - The Case for Building Wealth

Ep1 - Prologue

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My Top Wheel Trade Candidates Right Now

Dan Passarelli — Mon, 31 Aug 2026 23:06:04 GMT

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Hey Wealth Building Family!

Periodically, I like to post a list of stocks or ETFs that I’m watching that make for excellent wheel candidates. And here is that list.

AAPL - Yes, this one pretty much always makes my list. AAPL has just the right amount of statistical volatility to make wheel trades pretty much perfect 90% of the time. The other 10% just require some patience and (or) adjustments.

CMPS - This stock is a great wheel candidate for more experienced wheel traders who

GDX Put Credit Spread

John Kmiecik — Wed, 26 Aug 2026 16:24:57 GMT

This GDX bull put spread popped up on our scanner this morning. What I like about this trade idea is that gold stocks and gold mining stocks have continued to move higher after bottoming out in July. Taking a look at the daily chart below, you can see the ETF crossed over the $100 (short put strike) late last week. That level was prior resistance and now it is potential support with the ETF trading above it. If the ETF does pull back, that potential support at that level has a better chance of keeping it from moving lower than failing.

AMD Call Credit Spread

John Kmiecik — Wed, 19 Aug 2026 18:33:32 GMT

This AMD bear call spread popped up on our scanner today. What I find interesting about this trade idea is that the stock has been trading in a range (albeit a large range) since about the end of May. And what may be more interesting is the potential resistance level of that range. You guessed it! It is right around the short call strike (570). In fact,…

MSTR Call Credit Spread

John Kmiecik — Thu, 13 Aug 2026 15:39:06 GMT

This MSTR bear call spread popped up on our scanner earlier today. What I like about this trade idea is that the stock has some potential resistance right around the short call (98) as you can see on the hourly chart below. When it has moved above it, it usually has retreated back below it in a hurry. That pattern need to continue for this spread to pro…

ORCL Put Credit Spread

John Kmiecik — Thu, 06 Aug 2026 17:21:24 GMT

This ORCL bull put spread showed up on our scanner today. What I really like about this trade idea is that the stock just recently broke out of a serious downtrend. What also makes this trade idea interesting is the potential support level around the $137 level from prior pivots as you can see from the chart below. The $137 level is the short put strike. In addition, implied volatility is fairly priced on the options.

INTC Call Credit Spread

John Kmiecik — Mon, 27 Jul 2026 16:44:54 GMT

This INTC bear call spread showed up on our scanner this morning. What I like about this bear call trade idea is that looking at the chart, you can see since the beginning of July, the stock has drifted a lot lower. Continuing to look at the chart, you can see the stock dropped below its daily 50-day moving average and the below the critical $100 level.…

CRWV Put Credit Spread

John Kmiecik — Wed, 22 Jul 2026 15:52:57 GMT

This CRWV bull put spread showed up on our scanner this morning. What I like about this trade idea is that the stock had been in a serious downtrend settling lower pivot lows and lower pivot highs until recently. It recently broke through some prior resistance around the $80 level and broke through the downward sloping trendline as seen on the hourly time frame below. To be successful, the prior resistance level now needs to act as potential support if tested. In addition, implied volatility and option prices are elevated above historical levels.

Episode Extra Ep69.1

Dan Passarelli — Fri, 17 Jul 2026 20:03:14 GMT

AXP Put Credit Spread

John Kmiecik — Wed, 08 Jul 2026 15:37:48 GMT

This AXP bull put spread popped up on our scanner this morning. What I really like about this trade idea is that the stock has dropped the last couple of sessions to its 200-day moving average on the daily chart. The 200-day is a very nice and strong potential support level that may keep the stock from moving lower when tested. Plus, a big pullback like…

GFS Call Credit Spread

John Kmiecik — Tue, 30 Jun 2026 19:24:17 GMT

This GFS bear call spread popped up on our scanner earlier today. What I really like about this trade idea is that the stock has been trading in a fairly tight channel for over a month. The key component to this trade idea working is potential resistance. The stock has not closed above $90 (short call strike) even once since it has been trading in that channel. That trend needs to continue for this trade idea to be successful. Implied volatility is also fairly priced and it is currently at the high-end of its 6-month range.

GOOGL Call Credit Spread

John Kmiecik — Fri, 26 Jun 2026 17:14:09 GMT

This GOOGL bear call spread showed up on our scanner this morning. What I like about this trade idea is that the stock has been in a downtrend since the middle of May and just recently dropped below its 50-day moving average. Looking at the hourly time frame below, you can also see there is potential horizontal resistance from prior pivots right around …

NVDA Call Credit Spread

John Kmiecik — Tue, 23 Jun 2026 15:33:49 GMT

This NVDA bear call spread popped up on our scanner this morning. What I really like about this trade idea is that the stock has been moving lower recently and setting lower pivot highs and lows. In addition, the short call strike (210) is right around the 50-day moving average. That moving average is considered major potential resistance and may keep the underlying from moving through that level if tested. Implied volatility is also fairly priced.

Should You Use Covered Calls to Sell "Over-Priced" Stocks?

Dan Passarelli — Thu, 18 Jun 2026 15:44:35 GMT

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Hey Wealth Building Family,

“I shouldn’t have done that.”

That’s what a trader told me in a Zoom meeting.

I’d asked about his trading. Why he made a certain trade.

There were a lot of “I dunnos” and statements of regret coming from his end of the conversation.

And, we’ve all been there. I get it. But it’s not OK.

We trade for a reason.

And it’s not just “to make money.” That’s a given. With each trade, we’re trying to accomplish something specific. We have an objective.

With covered calls, that’s super easy. Our objective can be only one of two things: to sell the call to collect the premium and strive to “skate,” thus generating a return from the premium, or to get assigned and sell the stock at a specific price that is a function of the strike price plus the premium.

We think about the trade a little differently with each of those objectives. And whichever is our preferred outcome, we need to account for the possibility of the other one playing out.

In my last post, I talked mainly about the math to use with the skate objective. Now let’s focus on using covered calls as an exit for a stock you own.

First, what’s the case for exiting a stock? Because it’s too expensive, right? But how does one know whether a stock is overpriced or not?

There are fundamental and technical tools we can use to answer that question.

Technically, traders can look for stocks that are overextended with tools like RSI, slow stochastics and other things. The technical approach is OK, though it’s more for short-term pullbacks than confirming the death of a trend. But, again, it’s a valid approach.

Fundamentally, we can look at several things. The best value investors will look at the stock’s intrinsic value, and if the stock is trading above it’s value range by a big enough percentage, they’d think about selling it.

A simpler approach is to look at the stock’s price-to-earnings (P/E) ratio. this will vary across different industries, but once the P/E is above a threshold the stock is considered overpriced based on its expected future earnings stream.

There’s a little catch though:

GOOGL Call Credit Spread

John Kmiecik — Thu, 11 Jun 2026 16:51:31 GMT

This GOOGL bear call spread popped up on our scanner this morning. What I like about this trade idea is that the stock just broke through its 50-day moving average on the daily chart after forming a base which can be construed as a bearish move. Plus, if you look at an hourly chart, there is some potential resistance from prior pivots around the short call strike (357.5). That may keep the stock from moving higher if tested. Currently, implied volatility is also above historical levels which can potentially generate more premium for the spread which means more potential profit and less potential risk.

BE Call Credit Spread

John Kmiecik — Wed, 10 Jun 2026 17:50:05 GMT

This BE bear call spread showed up on our scanner earlier today. What I really like about this trade idea is that the stock just broke below a support level which is a bearish sign. Now that previous support level, is now potential resistance at the short call strike (260). In addition, the 50-day moving average is above where the stock is currently tra…

The Math of Covered Calls

Dan Passarelli — Thu, 04 Jun 2026 20:26:34 GMT

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Hey Wealth Building Family!

I recently promised a post on the metrics of the wheel. This is the first of two posts on the math I use when I trade the wheel.*

First, I need you to know, you’re measuring the wrong thing.

I know.

I can feel the walls going up. “How does this guy get off telling me what I’m doing is wrong? You don’t know me!”

And that’s fair.

But…Well…Let’s just say, in my experience, almost every investor gets this wrong. I hope you’re the exception. But statistically…It’s unlikely. Let me explain.

Imagine you brought in $350 in option premium on your last covered call trade. Nice!

Is that good?

If we’re talking $350 over 5 days on a $100 stock, yeah. You’re killin’ it.

If we’re talking $350 over 60 days on a $700 stock, No. That sucks. You did it wrong.

Every trade should answer one question: “Was this a good use of my capital?”

What was my return relative to capital invested?

What was my return relative to time?

What was my return relative to outcome scenarios?

Thinking about efficient use of capital in terms of return is what leads to good decision making.

If I’m building a house, I could dig the foundation with a garden trowel. Or I could hire a guy with an excavator. Both will get the job done. One is much more efficient. That one is a massively better decision.

And that’s what it comes down to with wheel trades. Yes. We’re in it for the profit. That’s assumed. But we need to go about it efficiently. We add options to our investing because we’re playing the game of compounding. Even slightly better returns matter massively in the long run. We need to make optimal decisions about our rate of return.

It comes down to this:

SCHW Put Credit Spread

John Kmiecik — Wed, 03 Jun 2026 16:36:34 GMT

This SCHW bull put spread popped up on our scanner today. What I like about this trade idea is that even though the stock has been in a downtrend, it has dropped to some potential major support at the $86 (short put strike) level. It may form a potential double-bottom too. In addition, the 50-day and 200-day moving averages are above where the stock is trading and it might act as a gravitational force and pull the stock hjgher towards them. The implied volatility is also fairly priced which is beneficial when selling premium.

APA Call Credit Spread

John Kmiecik — Wed, 27 May 2026 17:15:39 GMT

This APA bear call spread came across our scanner today. What I like about this trade idea is that the stock gapped lower after announcing earnings earlier this month. Since then, it has hung around its 50-day moving average. It is currently trading below it and that moving average might act as potential resistance if tested. In addition, the $40 level …