Select Page
Poor man covered call

Poor man covered call

Online Streaming video course with Downloadable Workbook

Covered call writing is a cash-generating strategy that lowers our cost basis thereby improving our opportunities for successful investments. It involves a long stock position (we buy the stock) and a short option position (we sell the call option). The PMCC strategy replaces the long stock positions with long call positions, typically deep in-the-money long-term expiration options known as LEAPS. Because long options cost less than stocks, we are investing less money and the return on our capital increases. As with all strategies, there are pros and cons that must be mastered to determine if this is a proper strategy for our personal risk-tolerance and return goals. This program will highlight in great detail:

  • PMCC definition
  • Pros and Cons
  • Risk/reward profile
  • Best stocks and ETFs to consider
  • How to construct a PMCC trade
  • Hypothetical example
  • Multiple real-life examples
  • The BCI PMCC Calculator
  • Option Greeks
  • Position management
  • Rolling LEAPS

Table of Contents

  • Disclaimer
  • Contact Slide
  • The PMCC Book
  • What is the PMCC?
  • PMCC Technical Term
  • Levels of Trading Approval
  • Broker Commissions
  • Pros and Cons of the PMCC
  • Risk-Reward Profile
  • Best Stocks to Consider
  • Best ETFs to Consider
  • Low Beta Stocks with LEAPS
  • Setting Up Initial Trade
  • Show or Fill Rule Example
  • Initial Trade Execution Form
  • Initial Trade Hypothetical Example
  • Strike Price Selection
  • Delta Decisions
  • INTC Example
  • MRK Example
  • XLK Example
  • Calculations
  • Maximum Profit
  • Breakeven
  • Maximum Loss
  • Option Greeks
  • Implied Volatility versus Stock Price
  • Position management Factors
  • When to Close a Winning Trade
  • Earnings Reports
  • Ex-Dividend Dates
  • Changes in Cost-Basis
  • Funding Changes in Cost-Basis
  • Rolling LEAPS
  • Exit Strategies for Short Calls
  • Reassessing Bullish Sentiment
  • Short Call Exercise
  • Summary
  • Additional Note Space

 

How many times will I be charged?
$49 1-time payment