Options Trading Courses > Advanced Options > Covered Call > Poor Man’s Covered Call

Poor Man’s Covered Call

Learn the fundamentals of Poor Man’s Covered Calls, a cost-efficient strategy leveraging long-term options. This course covers setting up trades, maximizing returns, risk mitigation, market analysis, adjustment techniques, and real-life examples. Understand how to implement and adjust this strategy for optimal profitability.

Teacher

'Options-America'

365,128 students enrolled

What You’ll Learn

Strategy Fundamentals: Understand the basics of Poor Man’s Covered Calls and how they work
Cost Efficiency: Learn how to leverage long-term options to reduce capital requirements.
Real-Life Examples: Gain insights from real-world examples to see the strategy in action.
Maximizing Returns: Enhance your profitability with strategies tailored for PMCC.

Risk Mitigation: Implement techniques to manage and minimize risk effectively.
Market Analysis: Analyze market conditions to determine the optimal times to employ this strategy.
Adjustment Techniques: Explore how to adjust Poor Man’s Covered Calls for changing market conditions.
Setting Up Trades: Discover the best practices for selecting and executing Poor Man’s Covered Calls.

Start this course

Welcome to our comprehensive course on Poor Man’s Covered Call (PMCC) strategies! This course is designed to provide you with the knowledge and skills to optimize your trading strategies, manage risks effectively, and maximize your profit potential.

Course Overview:

Introduction to PMCC: Understand the fundamentals of Poor Man’s Covered Call, including key concepts and terminology.
Market Conditions and Stability: Learn how to assess market conditions and stability for PMCC strategies.
Risks and Their Impact: Explore the risks associated with PMCC and their impact on your strategy.
Setting Up PMCC: Step-by-step instructions on how to set up PMCC on various trading platforms.
Executing PMCC Strategies: Practical examples and demonstrations of executing PMCC strategies.
Combining PMCC with Other Strategies: Discover how to enhance your PMCC strategy by combining it with other options strategies like Naked Puts, Protective Puts, Verticals, Iron Condors, and more.
Risk Management and Adjustments: Learn essential adjustment techniques to manage risk and improve your trading outcomes.
Trading Tips and Management: Gain valuable insights and tips for managing your options trading portfolio effectively.

What You’ll Learn:

Master the basics of Poor Man’s Covered Call strategies.
Identify ideal market conditions for PMCC.
Navigate the risks and understand their impact on your strategy.
Set up and execute PMCC strategies with confidence.
Combine PMCC with other strategies to optimize your portfolio.
Apply advanced adjustment techniques to manage risks and enhance profitability.
Utilize trading tips to manage your options portfolio effectively.

Why Take This Course? This course is packed with real-world examples, practical tips, and expert insights to help you become a confident and successful trader. Whether you are a beginner or an experienced trader looking to refine your strategies, this course has something for everyone. By mastering the PMCC strategy, you can enhance your trading skills, manage your portfolio more effectively, and achieve superior trading results.

Join us and take your trading skills to the next level. This course is available exclusively for subscribers of Options America. Stay ahead of the curve with our monthly updates and new strategies. Subscribe now and start your journey to becoming a proficient options trader!

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Module 1: Introduction to Poor Man’s Covered Call

Module 2: Market Conditions and Suitability

Module 3: The Greeks and Their Impact

Module 4: Setting Up Poor Man’s Covered Calls

Module 5: Executing Poor Man’s Covered Call Strategies

Module 6: Combining Poor Man’s Covered Calls with Other Strategies

Module 7: Risk Management and Adjustments

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Poor Man’s Covered Call Strategy Adjustments

Preview Text lesson

Module 8: Options Trading Management

Summary and Next Steps

66

Summary of the Poor Man's Covered Call Course

Text lesson

What is a Poor Man's Covered Call? A Poor Man's Covered Call is an options trading strategy that involves buying a long-term call option (LEAPS) and selling a short-term call option against it. This strategy mimics the traditional covered call but requires less capital since it substitutes owning the stock with owning a long-term call option.

What is a Poor Man's Covered Call? A Poor Man's Covered Call is an options trading strategy that involves buying a long-term call option (LEAPS) and selling a short-term call option against it. This strategy mimics the traditional covered call but requires less capital since it substitutes owning the stock with owning a long-term call option.

Do I need prior experience in options trading to take this course? Yes, a basic understanding of options trading is recommended before taking this course. You should be familiar with terms such as call and put options, strike prices, expiration dates, and option premiums. Our introductory options courses can help build the necessary foundation if you are new to options trading.

Do I need prior experience in options trading to take this course? Yes, a basic understanding of options trading is recommended before taking this course. You should be familiar with terms such as call and put options, strike prices, expiration dates, and option premiums. Our introductory options courses can help build the necessary foundation if you are new to options trading.

What trading platform will be used in this course? We will be using Thinkorswim for demonstrating the Poor Man's Covered Call strategy. However, the concepts and techniques taught in this course can be applied to other trading platforms as well. Ensure you have access to a platform that supports options trading.

What trading platform will be used in this course? We will be using Thinkorswim for demonstrating the Poor Man's Covered Call strategy. However, the concepts and techniques taught in this course can be applied to other trading platforms as well. Ensure you have access to a platform that supports options trading.

How much capital do I need to start using the Poor Man's Covered Call strategy? The capital requirement varies based on the specific options and underlying assets you choose. Generally, this strategy requires less capital than a traditional covered call because you are purchasing a long-term call option instead of owning the stock. It's important to have sufficient funds to manage your positions and potential adjustments.

How much capital do I need to start using the Poor Man's Covered Call strategy? The capital requirement varies based on the specific options and underlying assets you choose. Generally, this strategy requires less capital than a traditional covered call because you are purchasing a long-term call option instead of owning the stock. It's important to have sufficient funds to manage your positions and potential adjustments.

What are the main risks associated with the Poor Man's Covered Call strategy? The primary risks include time decay (Theta) working against your long-term call option, changes in implied volatility (Vega) affecting the value of your options, and liquidity risk. Understanding and managing these risks are crucial to successfully implementing this strategy. The course will cover risk management techniques in detail.

What are the main risks associated with the Poor Man's Covered Call strategy? The primary risks include time decay (Theta) working against your long-term call option, changes in implied volatility (Vega) affecting the value of your options, and liquidity risk. Understanding and managing these risks are crucial to successfully implementing this strategy. The course will cover risk management techniques in detail.

How will this course help me improve my trading skills? This course will provide you with a comprehensive understanding of the Poor Man's Covered Call strategy, including market conditions, execution, adjustments, and risk management. By the end of the course, you will be able to implement and manage this strategy effectively, enhancing your overall trading skills and confidence.

How will this course help me improve my trading skills? This course will provide you with a comprehensive understanding of the Poor Man's Covered Call strategy, including market conditions, execution, adjustments, and risk management. By the end of the course, you will be able to implement and manage this strategy effectively, enhancing your overall trading skills and confidence.

Notice for Students: What You Need to Know Before Taking the Poor Man's Covered Call Course

Welcome to the Poor Man's Covered Call course! Before you embark on this educational journey, here are a few important points you need to know:

Basic Understanding of Options Trading: This course assumes that you have a fundamental understanding of options trading. You should be familiar with basic concepts such as call and put options, strike prices, expiration dates, and option premiums. If you are new to options trading, we recommend reviewing our introductory courses to build a solid foundation.
Familiarity with the Greeks: Understanding the Greeks (Delta, Gamma, Theta, Vega) is crucial for this course. These metrics help you gauge the risk and potential reward of your options positions. We will discuss the Greeks in detail, but a prior knowledge will be beneficial.
Access to a Trading Platform: You will need access to a trading platform that allows you to execute and manage options trades. We will be demonstrating setups and executions using Thinkorswim, but the concepts are applicable to other platforms as well. Ensure you are comfortable navigating your chosen platform.
Capital Requirements: The Poor Man's Covered Call strategy involves both buying and selling options, which requires capital. Make sure you understand the capital requirements for this strategy and that you have sufficient funds in your trading account to manage your positions.
Risk Management Awareness: Options trading involves significant risk, and it is essential to have a solid risk management plan. We will cover risk management techniques, but you should be prepared to implement these strategies and understand the potential for losses.
Market Conditions and Stability: This course will teach you how to analyze market conditions and determine the best times to implement the Poor Man's Covered Call strategy. Understanding the impact of market stability and volatility is key to your success.
Commitment to Continuous Learning: Options trading is complex and requires continuous learning and practice. Be prepared to dedicate time to studying the course material, practicing on your trading platform, and staying updated with market trends and changes.
Interactive Participation: Engage actively with the course content, participate in discussions, and ask questions. Interactive participation will enhance your learning experience and help you clarify any doubts.

We are excited to have you join us in this comprehensive course on the Poor Man's Covered Call strategy. By the end of this course, you will have a thorough understanding of how to implement, execute, and manage this strategy effectively. Let's get started!