The Market Maker That Was On The Other Side Of Every Loss You Took

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)