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Poor Man's Covered Call (PMCC) strategy β€” notepad sketch of the diagonal spread payoff with LEAP long call and short call, on a trader's desk
Poor Man’s Covered Call: Complete PMCC Strategy Guide covered calls leaps options strategy pmcc risk management

A Poor Man’s Covered Call is often presented as a lower-cost version of a covered call.

Buy a long-dated call.

Sell a shorter-term call against it.

Collect premium.

Repeat.

That sounds simple.

And mechanically, it is.

But a PMCC is not simply a covered call with less capital.

You do not ow

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The Wheel Trade
Wheel Strategy Explained: Cash-Secured Puts, Covered Calls, and Risk cash-secured puts covered calls options income risk management wheel strategy

The Wheel strategy is often presented as a simple way to collect options premium again and again.

Sell a put.

Collect premium.

If assigned, own the stock.

Sell a covered call.

Collect more premium.

If the shares are called away, start over by selling another put.

That is the basic cycle.

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