Beat cheese and butter at medium speed with an electric mixer in a large bowl until blended. Add red pepper, Worcestershire sauce, and onion salt, beating just until blended. Gradually add flour, beating until mixture is blended and smooth.
Drain olives on paper towels. Pinch off a 1-inch piece of dough. Wrap dough around 1 olive; roll in hands to form a ball, covering entire olive with dough, and place on a lightly greased baking sheet. Repeat procedure with remaining dough and olives.
Bake at 350° for 15 minutes or until lightly browned. Remove to wire racks, and let cool completely.