How I Used a PMCC Strategy to 4x the Return From a Stock
Covered calls, when used correctly, are possibly one of the best options strategies available to retail investors. However, the biggest weakness of covered calls is that they require a significant amount of capital. Fortunately, there is an options strategy that affords an investor virtually all the benefits of a covered call, but with a fraction of the capital requirement. This strategy is called the Poor Man’s Covered Call (PMCC). A Poor Man’s Covered Call is technically called a long call diagonal debit spread that effectively replicates a covered call position. The main benefit of using th...