Ep42: Dan Passarelli – Struck by an Anomaly in Options
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Guest profile
Dan Passarelli is an author, trader and former member of the Chicago Board Options Exchange (CBOE) and Chicago Mercantile Exchange (CME) Group. He also founded Market Taker Mentoring, Inc., a leading options education firm that provides online options education, options newsletters and personalized, one-on-one coaching for options traders. Dan began teaching both basic and advanced trading concepts to many leading options-based brokerage firms since 2005. Dan also contributes to financial media such as TheStreet.com, FOX Business News, Bloomberg Television, National Public Radio (NPR), and the CBOE blog. And he has a weekly featured video on CBOETV. Dan, on a personal note, is also a marathon runner, a musician, and a world traveler.
Learn from this trading expert as he shares his valuable experience learning the ins and outs of stock options trading. Listen also his equally important tips to drive more profits regardless if you’re a newbie or a veteran in this field.
“The more you learn, the more you earn.”
Dan Passarelli
Topics Covered:
02:07 – Dan briefly talks about starting his career as an option trader
03:01 – Sharing how he ended up with his worst investment over
03:44 – Explaining what volatility means in the stock market and how it works
09:20 – Lessons he learned from his loss in stock option trading
10:53 – Andrew stresses the importance of understanding the concept of anomalies
11:27 – Stressing the value of long-term experience and relating to Andrew’s experience as a broker
14:08 – Advice to listeners to avoid his mistakes
15:00 – Invitation to visit markettaker.com/five that will give listeners a free checklist on five strategies for trading volatile markets
16:19 – Parting words from Dan: “The more you learn, the more you earn.”
Main Takeaways:
Lesson 1: “I learned a whole lot about how volatility and pricing model and cash, the cash component of stocks value work.”– Dan Passarelli
Lesson 2: “You have to evolve or die. You have to keep moving forward. You have to keep learning because there’s always somebody smarter than you. And if you want to be great, you can’t rest on your laurels and think, Oh, I know this stuff.”– Dan Passarelli
Lesson 3: “I think one of the things that’s important for the listeners to understand is the concept of anomalies. Even if we’ve covered all of our risks, there are still anomalies, it could be earthquakes, nominees, natural disasters, but there could be many others. But here we have a technical anomaly. Something very, very rare that many people hadn’t seen.”– Andrew Stotz
Lesson 4: “Be careful. Always try to rely on people who have long-term experience because they may be able to protect you from a market anomaly.”– Andrew Stotz
Resources:
- Dan Passarelli’s book: Trading Option Greeks
- Dan Passarelli’s book: The Market Taker’s Edge
- markettaker.com/five
- Options trading blog
Connect with Dan Passarelli:
Andrew’s books
- How to Start Building Your Wealth Investing in the Stock Market
- My Worst Investment Ever
- 9 Valuation Mistakes and How to Avoid Them
- Transform Your Business with Dr.Deming’s 14 Points
Andrew’s online programs
- Valuation Master Class
- Women Building Wealth
- The Build Your Wealth Membership Group
- Become a Great Presenter and Increase Your Influence
- Transform Your Business with Dr. Deming’s 14 Points
Connect with Andrew Stotz:
About the show & host, Andrew Stotz
Welcome to My Worst Investment Ever podcast hosted by Your Worst Podcast Host, Andrew Stotz, where you will hear stories of loss to keep you winning. In our community, we know that to win in investing you must take the risk, but to win big, you’ve got to reduce it.
Your Worst Podcast Host, Andrew Stotz, Ph.D., CFA, is also the CEO of A. Stotz Investment Research and A. Stotz Academy, which helps people create, grow, measure, and protect their wealth.