Dan Passarelli – Struck by an Anomaly in Options

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

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Resources: 

• My Worst Investment Ever Book
• myworstinvestmentever.com
• Dan Passarelli's book: Trading Option Greeks
• Dan Passarelli's book: The Market Taker's Edge
• markettaker.com/five
• Options trading blog

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