Poor Man's Covered Call
Definition
A lower-capital alternative to a covered call using a long deep in-the-money LEAPS call instead of owning the underlying stock. It replicates covered call income with significantly less capital outlay.
Example
Buying a long LEAPS call and selling short-term calls mimics a covered call with less capital.
Related Terms
Frequently Asked Question
What is a Poor Man's Covered Call?
A Poor Man's Covered Call is a capital-efficient alternative to a covered call, using a long deep ITM LEAPS call in place of owning the stock. It collects similar short-call premium with a fraction of the capital required.
APA Citation
Last updated:
· Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.