What Happens If Your PMCC Short Call Goes ITM? | NVDA Diagonal Spread Example

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⚠️ Education only — not advice. Options/futures involve substantial risk. See OCC Options Disclosure Document.

What happens when the short call in a Poor Man’s Covered Call (PMCC) goes in the money?

In this video, I walk through one of the most common questions traders ask about diagonal spreads and Poor Man’s Covered Calls: what happens when the short call gets challenged, goes ITM, or even gets assigned.
Using NVDA and the Thinkorswim ThinkBack tool, I break down how a PMCC behaves when the stock rallies through the short strike, what assignment can create, and why assignment is usually not the end of the world. I also explain how traders may clean up the position by buying back short shares and then deciding how they want to proceed with the longer-dated call.

This video covers:
what it means when the short call in a PMCC goes ITM
why that does not automatically mean the trade failed
what assignment can create in a diagonal spread
how to think about being short shares against a long-dated call
practical ways to manage the position
why many traders prefer to act before assignment becomes likely

If you trade Poor Man’s Covered Calls, diagonal spreads, covered calls, or LEAPS-based option strategies, this is an important concept to understand.

Topics discussed include:
PMCC, Poor Man’s Covered Call, diagonal spreads, short call assignment, options assignment risk, long call diagonal, Thinkorswim, ThinkBack, NVDA options, covered call alternatives, and options trade management.

#PMCC #PoorMansCoveredCall #DiagonalSpread #OptionsTrading #NVDA #Thinkorswim #LEAPS #CoveredCall #OptionAssignment #tradingeducation