Ep4 - Guest Episode: Mark Benzaquen, Principal at OCC Education

Wealth Building With Options

Episode Summary:

In this special guest episode of Wealth Building with Options, host Dan Passarelli sits down with Mark Benzaquen, a principal at the Options Clearing Corporation (OCC). Mark shares his journey from the trading floor to investor education, shedding light on the critical role of the OCC in the options trading ecosystem. This episode dives into key aspects of options trading, risk management, and the importance of financial education.

Key Topics Discussed:

• Mark’s Background & Career Journey

  • From trading floor clerk to brokerage side and eventual transition into investor education.

  • How his experience on the floor shaped his understanding of options trading.

• Understanding the OCC’s Role in the Market

  • The OCC as a Central Counterparty (CCP) ensuring market stability.

  • Why the OCC is crucial for clearing and settlement in options trading.

  • How the OCC safeguards investors and maintains financial market integrity.

• Investor Education and Market Awareness

  • The OCC’s efforts in providing free education through the Options Industry Council (OIC).

  • Resources available to traders and financial advisors to improve their options knowledge.

  • How the OCC ensures investors are informed about market complexities.

• Challenges of Transitioning from the Trading Floor to Investor Education

  • The skills that traders acquire on the floor and their applicability in the broader financial industry.

  • The misconception that options trading is a zero-sum game.

• Common Pitfalls and Challenges Faced by Options Traders

  • Lack of awareness around corporate actions and their impact on options contracts.

  • The risks of after-hours trading and unexpected assignments.

  • Understanding complex strategies like iron condors and iron butterflies.

  • The importance of planning trades and managing risk effectively.

• The Wheel Strategy: Benefits & Challenges

  • How covered calls and cash-secured puts can be integrated into a long-term strategy.

  • Common struggles investors face when implementing the wheel strategy.

  • The necessity of being prepared for potential assignments and stock ownership.

• The Growth of Options Trading & Changing Demographics

  • The rise of younger investors in the options market post-pandemic.

  • The shift in trading volumes over the past decades.

  • The role of education in fostering responsible trading practices.

• Live Music & Personal Interests

  • Mark and Dan discuss their shared passion for live music and upcoming concerts.

  • Favorite concert experiences, including Red Rocks and the Sphere in Las Vegas.

Resources & Links:

• Learn more about Options Clearing Corporation (OCC): www.optionsclearing.com

• Explore free options education with the Options Industry Council (OIC): www.optionseducation.org

• Check out Dan Passarelli’s work at Market Taker Mentoring: www.markettaker.com

• Read the Characteristics and Risks of Standardized Options https://www.theocc.com/getmedia/a151a9ae-d784-4a15-bdeb-23a029f50b70/riskstoc.pdf.

Make sure to join the SubStack Community at https://wealthbuildingwithoptions.substack.com/ for more wealth building insights, trade examples, and bonus podcast videos.

Final Thoughts:

Mark Benzaquen’s expertise in investor education makes this episode a must-listen for traders at all levels. Whether you're new to options or a seasoned investor, understanding the infrastructure behind the market and how to navigate it efficiently is crucial.

Disclosure:

Options involve risk and are not suitable for all investors. Prior to buying or selling an option, investors must read Characteristics and Risks of Standardized Options (ODD) which can be found at https://www.theocc.com/company-information/documents-and-archives/options-disclosure-document

Don’t trade with money you are not prepared to lose. Anything discussed on this show is intended to be generalized information and not intended to be a recommendation to buy or sell any security. The host and guests are not familiar with listeners’ specific situations. For trading information relevant to your specific needs, speak with a licensed broker or advisor.

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