Dan Passarelli kicks off this episode with a wild story from the trading floor—complete with Hulk-like rage and a colorful nickname—and uses it to dive deep into one of the most powerful and misunderstood ideas in options trading: synthetic positions. This episode explores how synthetics reveal the truth about covered calls and cash-secured puts—that they are, in fact, two sides of the same coin. Dan unpacks the logic behind synthetics, the Greeks that drive them, and why understanding this can make you a sharper, more strategic investor. In This Episode: The infamous “Hey Butthole” trading floor story—and what it teaches about real-world trading Why a trader’s “172” call position wasn’t an error—it was a lesson in synthetics The delta-neutral mindset of market makers and how it unlocks synthetic thinking Covered calls vs. cash-secured puts: Why they’re synthetically identical (and when they’re not) Understanding put-call parity and its real-world implications The Greeks of synthetics: Delta, Theta, and the messy role of interest and early exercise How professional traders use synthetic stock, conversions, reversals, and synthetic straddles When a put and a call add up to more than 100 delta—and what that means How synthetics help you manage vertical spreads, identify arbitrage, and reduce capital requirements Why thinking in terms of synthetics leads to smarter, more flexible trading decisions Why It Matters: Understanding synthetics isn’t just academic—it’s foundational. If you truly grasp this concept, you’ll: Trade covered calls and cash-secured puts with more confidence Identify hidden equivalencies across strategies Improve capital efficiency and decision-making Spot arbitrage and mispricing opportunities others miss Quote of the Episode: “If I own 100 shares and I’m short one call, that’s a covered call. If I’m short a put at the same strike—guess what? At expiration, they behave exactly the same.” Don’t Miss: Next episode, Dan dives into buy-writes and how to use them effectively in today’s market conditions. Make sure you subscribe so you’re the first to know when it drops. Resources & Links: Trading Option Greeks – by Dan Passarelli Join the community at WealthBuildingWithOptions.Substack.com for bonus episodes, trade breakdowns, and monthly AMAs Disclaimer: Options involve risk and are not suitable for all investors. Please read the Characteristics and Risks of Standardized Options before trading.