Poor Man's Covered Calls (PMCC)

What It Is

A synthetic covered call using:

  • Long LEAPS (deep ITM long-dated calls)
  • Short near-term calls

Risk Level

🟡 Medium

(hidden greeks learning curve)

Capital Required

$1,000–$5,000 per position

Good for mid-cap accounts ($10k–$50k)

When to Use

  • When you want covered call income but cheaper
  • When you have conviction in long-term upward trend

When to Avoid

  • High IV decay environments
  • Companies with unclear long-term picture

Progression Fit

Great for scaling to multiple positions without holding 100 shares.