In this episode of Wealth Building with Options, host Dan Passarelli dives deep into one of the most popular and misunderstood strategies in options trading: the Wheel Strategy. Drawing inspiration from a (possibly misattributed) Yogi Berra quote — “In theory, there’s no difference between theory and practice, but in practice there is” — Dan explores how the wheel works in real life, why some traders fail with it, and how to use it as a disciplined, systematic approach to grow wealth.

Joining Dan is frequent guest and fellow coach John Kmiecik, who shares his insights on both the mechanics and the psychology behind the wheel. Together, they unpack the nuances that make this strategy both powerful and deceptively simple.

• The Wheel Explained: How cash-secured puts and covered calls form a repeating system to generate consistent premiums.
• Theory vs. Practice: Why data shows the wheel can beat the market, but traders still fail without methodology and discipline.
• Pin Risk & Assignment Nuances: Unlikely but important scenarios every wheel trader should understand.
• Premium vs. Stock Scalping: Which matters more when trading the wheel, and how premiums can smooth out “wrong” outcomes.
• Trader Psychology: Why relaxation, patience, and mindset shift from “trader” to “investor” are essential for success.
• Practical Tips: From good-till-cancel buyback orders to managing emotions and avoiding overtrading.

• “The wheel is an if-then series of steps traded cyclically, growing wealth faster than buy-and-hold.” – Dan Passarelli
• “Relax. You’re absolutely going to love this strategy. I can stake my life on it.” – John Kmiecik

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Until next time—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.

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