Poor Man's Covered Call Calculator
A PMCC is a long LEAP call paired with short nearer-term calls: less capital than stock plus covered call, with diagonal spread mechanics.
Stock Details
Long LEAP Call (Deep ITM)
Typically 0.70-0.80 delta, 6-24 months out
Short Call (Near Term OTM)
Typically 0.30 delta, 30-45 days out
Enter option details to see payoff diagram
Trade Summary
Capital Required
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Capital Saved
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Breakeven
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Max Profit
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Commonly asked PMCC questions
What is a poor man's covered call?
It is a long-dated in-the-money call (LEAP) used like stock, plus a shorter-term short call sold against it for income—similar idea to a covered call with less cash than buying shares.
How do you pick the long LEAP?
Traders often use a deep ITM LEAP with high delta (often 0.70+) and enough time to expiration; specifics depend on liquidity, IV, and your outlook.
How do you pick the short call?
Commonly monthly or weekly OTM calls; strike and expiry should align with your income goal and keep the short above the LEAP's effective breakeven in many setups.
What are main risks?
LEAP premium can decay; the stock can fall; short calls can cap upside. Rolling and managing legs adds complexity versus a simple covered call.
PMCC vs traditional covered call?
Covered call uses real stock; PMCC uses a LEAP as the long leg—different capital, margin, dividends, and assignment behavior.
Do you roll the short call?
Many traders roll the short call each cycle to collect more premium; timing and strikes depend on price action and your plan.
Related Calculators
Daily Cumulative P&L
$33,989.51+$32,609.07
Avg Trade: $60.80
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Best Performing
Morning Breakouts
82% Win Rate
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