The Market Maker That Was On The Other Side Of Every Loss You Took
Titans Of Tomorrow
48,096 views
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Dan Passarelli spent years as an options market maker on the floor of the Chicago Board Options Exchange and has since written books and taught traders about options.
In this episode, Dan explains what market makers actually do, how their hedging can affect price around option strikes, and why he believes volatility can be easier to predict than direction. He also walks through the wheel strategy, an earnings trade built around falling volatility, and the risk and exit plans behind his trades.
__________________________________________
🔗Connect with Waqar here:
@WaqarAsim.
Titans Of Tomorrow here:
Instagram: titansoftomorrowpodcast
Guest (Dan Passareli):
LinkedIn: danpassarelli
https://x.com/Dan_Passarelli
____________________________________________________________________
Chapters:
0:00 - Intro: Dan Passarelli and the options market
2:35 - Why volatility is easier to predict than price
7:06 - The options edge that emerged after 1987
11:49 - What options market makers actually do
16:57 - How gamma can pull price towards a strike
23:23 - How market makers earn the bid-ask spread
28:08 - How market making has changed
34:17 - Is options trading a zero-sum game?
38:49 - When price charts matter to an options trader
43:14 - The wheel strategy: covered calls
48:37 - Completing the wheel with cash-secured puts
51:28 - Trading the volatility drop after earnings
55:19 - Psychology and emotions in options trading
58:08 - How to size an options position
1:03:03 - From trading pits to electronic markets
1:07:38 - Plan your exit before entering a trade
This episode is brought to you by Hola Prime, the first prop trading firm in history with a Deloitte-audited payout record. 98.35% on time. Zero denials. Trade with them and get 20% off:
https://holaprime.com?affiliateId=697
(Or Use Code: TOT)
20 Comments
Everytime the experience was translating to the viewer through elaboration, the interviewer would abruptly change the subject with a new question. A good interviewer can function with unplanned followups and certainly isn't rude the the interviewee's explanation by moving on without addressing what was said.
The Market Maker That Was On The Other Side Of Every Loss You Took
Titans Of Tomorrow
48,096 views
Get this episode's PDF companion 👇
https://innercircle.titanstomorrow.co...
20% Off forex funding with Hola Prime: https://holaprime.com?affiliateId=697
(Or Use Code: TOT)
30% off all funding with Alpha Capital: https://app.alphacapitalgroup.uk/sign...
(Or Use Code: TOT)
Get 20% off journaling with Tradezella:
https://www.tradezella.com/?via=waqar
(Or Use Codes: ToT10 or ToT20)
Dan Passarelli spent years as an options market maker on the floor of the Chicago Board Options Exchange and has since written books and taught traders about options.
In this episode, Dan explains what market makers actually do, how their hedging can affect price around option strikes, and why he believes volatility can be easier to predict than direction. He also walks through the wheel strategy, an earnings trade built around falling volatility, and the risk and exit plans behind his trades.
__________________________________________
🔗Connect with Waqar here:
@WaqarAsim.
Titans Of Tomorrow here:
Instagram: titansoftomorrowpodcast
Guest (Dan Passareli):
LinkedIn: danpassarelli
https://x.com/Dan_Passarelli
____________________________________________________________________
Chapters:
0:00 - Intro: Dan Passarelli and the options market
2:35 - Why volatility is easier to predict than price
7:06 - The options edge that emerged after 1987
11:49 - What options market makers actually do
16:57 - How gamma can pull price towards a strike
23:23 - How market makers earn the bid-ask spread
28:08 - How market making has changed
34:17 - Is options trading a zero-sum game?
38:49 - When price charts matter to an options trader
43:14 - The wheel strategy: covered calls
48:37 - Completing the wheel with cash-secured puts
51:28 - Trading the volatility drop after earnings
55:19 - Psychology and emotions in options trading
58:08 - How to size an options position
1:03:03 - From trading pits to electronic markets
1:07:38 - Plan your exit before entering a trade
This episode is brought to you by Hola Prime, the first prop trading firm in history with a Deloitte-audited payout record. 98.35% on time. Zero denials. Trade with them and get 20% off:
https://holaprime.com?affiliateId=697
(Or Use Code: TOT)
https://innercircle.titanstomorrow.com/danpassarelli/
Hola Prime just became the first prop trading firm in history to be audited by Deloitte. 98.35% of payouts cleared in under an hour. Zero denials. Trade with them: Use code TOT for 20% off → https://holaprime.com?affiliateId=697