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Learn the Poor Man’s Covered Call (PMCC) options strategy with in-depth examples and trade data visualizations.
The PMCC is becoming a super popular options strategy and alternative to the covered call. The PMCC requires significantly less capital to trade than a traditional covered call and comes with much lower risk as a result.
In this video, you’ll learn all about the poor man’s covered call (PMCC) options strategy with theoretical explanations and visualizations, as well as historical PMCC trades created from real data.
0:00 Introduction
0:33 How the Poor Man’s Covered Call (PMCC) Works
1:37 Real PMCC Setup in AAPL
5:41 PMCC Trade Examples w/ Profit Visualizations
6:09 PMCC Example #1: SPY
8:15 Example #1 P/L Visualization
9:49 PMCC Trade Example #2: FB
11:34 Example #2 P/L Visualization
12:17 “Max” Profit & Loss Explained
13:09 “Simple” Max Profit of a PMCC
14:15 Why Calculating Max Profit is Difficult
15:35 PMCC vs. Implied Volatility Changes
17:30 Trade Simulation: PMCC vs. 25% IV Increase
19:18 Don’t Miss This Video!
20:22 PMCC vs. Time Decay
21:49 Trade Simulation: PMCC vs. Passage of Time
23:18 How to Choose Strike Prices and Expirations?
23:46 Long Call Selection Guideline
26:53 Short Call Selection Guideline
29:54 Option Selection Recap
31:15 Early Assignment Risk?
33:26 Tax Implications of PMCCs vs. Covered Calls
35:23 Watch This Video to Level Up Your Options Trading IQ
Leave me a comment if you have any questions or feedback!
=== Recommended Resources ===
➥ Covered Calls for Beginners:
➥ Options Trading for Beginners:
➥ Vertical Spreads for Beginners:
➥ Why You Shouldn’t Worry About Early Assignment:
➥ Vertical Spread Concepts Options Traders Must Know:
➥ How I Buy Bitcoin Daily:
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