A poor man’s covered call is similar to a common covered-call strategy, with one exception as follows:
Buys an in-the-money LEAPS call and sells a near-term out-of-the-money call against it, rather than buying the stock.
LEAPS are options contracts with an expiration date longer than one year. LEAPS contract gives an investor the opportunity for long-term exposure.
Buys an in-the-money LEAPS call and sells a near-term out-of-the-money call against it, rather than buying the stock.
LEAPS are options contracts with an expiration date longer than one year. LEAPS contract gives an investor the opportunity for long-term exposure.