Managing a Poor Man’s Covered Call Trade When Share Price Drops Below the LEAPS Strike

Managing a Poor Man’s Covered Call Trade When Share Price Drops Below the LEAPS Strike

Oct 17, 2020 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Options Trade Execution, Stock Option Strategies

A typical Poor Man’s Covered Call (PMCC) trade involves buying a deep in-the-money call LEAPS option and selling short-term out-of-the-money call options which is protected by the long LEAPS position. In April 2020, Martin shared with me a PMCC trade he executed...