))
Ep21-The Edge of Reason: And the Reason for Edge
Manage episode 491902949 series 3648880
Content provided by Wealth Building With Options. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Wealth Building With Options or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://ppacc.player.fm/legal.
In this episode of Wealth Building with Options, host Dan Passarelli explores one of the most powerful, yet often overlooked, concepts in successful trading: edge. Whether you're seeking an advantage like a card counter at the blackjack table or building consistency through disciplined investing, edge—the measurable statistical advantage—is what separates consistent winners from the rest.
What You'll Learn in This Episode:- What edge really means in trading and how even a small edge can compound into powerful long-term results
- The three primary sources of edge every options investor needs to understand:
- Fundamental analysis (PE ratio, price-to-book, operating yield, current ratio)
- Technical analysis (support, resistance, moving averages, volume)
- Volatility analysis (historical vs. implied volatility, vertical skew, term structure)
- Fundamental analysis (PE ratio, price-to-book, operating yield, current ratio)
- How smart investors use support and resistance levels to improve strike selection and time their trades more effectively
- Why volatility pricing can create opportunity if you know how to spot overpriced or underpriced options
- A practical framework for setting strike prices and choosing expirations for covered calls and cash-secured puts
Dan also shares stories from the trading floor and insights from professional mentors, blending theory with real-world examples in a way that brings clarity to complex topics.
Resources Mentioned:- The Intelligent Investor by Benjamin Graham
- Buffettology by Mary Buffett
- How to Read a Financial Report by John and Tage Tracy
Even a 1–2% edge can significantly improve your trading outcomes—especially when compounded over time. Dan explains how mastering these analytical tools can help you trade more confidently and profitably, while avoiding common mistakes.
Subscribe to the show to catch Episode 22, where Dan dives deep into buy-writes and how to maximize capital efficiency using this foundational strategy.
To support the show and get access to exclusive episodes, trade breakdowns, and AMAs, visit:
wealthbuildingwithoptions.substack.com
Options involve risk and are not suitable for all investors. Please review the Characteristics and Risks of Standardized Options before trading.
To learn more about Dan Passarelli and the Market Taker Mentoring community, visit MarketTaker.com
22 episodes
Share
