DPMCC Risks: What Traders Miss Before Selling Calls Against a LEAP covered calls dpmcc leaps options risk pmcc risk management

A Dynamic Poor Man’s Covered Call can look safer than it really is.

You buy a long-dated call.

You sell a shorter-term call against it.

You collect premium.

The long LEAP costs less than buying 100 shares.

And the short call may offset part of the long option’s decline during a pullback.

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