LEAPS, Calendar Spreads & Diagonals Explained: The Foundation of the Poor Man’s Covered Call

Описание: Want covered-call style income without tying up full share capital? In this lesson, we break down calendar spreads and diagonal spreads—two strategies that let you sell time, leverage implied volatility, and, with diagonals, add smart directional exposure. You’ll see how the Poor Man’s Covered Call (PMCC) uses a long-dated in-the-money call as a stock substitute, then sells shorter-dated calls against it to generate recurring income—a capital-efficient enhancement to traditional covered call writing.

What you’ll learn

Calendar spreads (time spreads): how selling near-term premium vs. owning longer-term premium captures theta and benefits from changes in implied volatility (IV).

Diagonal spreads: how mixing different expirations and different strikes adds delta (direction) while still collecting premium.

Poor Man’s Covered Call (PMCC): a practical diagonal that replicates covered calls with far less capital, plus common setups and tradeoffs.

When to choose calendars vs. diagonals: neutral vs. directional outlooks, pre-earnings IV, and term structure nuances.

Who this is for
Intermediate options traders and covered call writers who want capital efficiency and more flexible management without giving up the covered-call framework.

Prerequisites
Basic understanding of calls/puts, strike/expiration, and covered call mechanics.

Disclaimer:
The strategies discussed in this video are for educational purposes only and do not constitute financial advice or a recommendation to buy or sell securities. Options involve risk and are not suitable for all investors. Past performance does not guarantee future results. Always review your own financial situation and consult a licensed professional before trading options or derivatives.