Naked Put Options Trade Covered Call & Poor Man Covered Call

Explore options 101 with a free one-hour course on call and put options, mastering price setup around one standard deviation and buying versus selling strategies.

Set up the chart for naked put, covered call, and poor man covered call strategies using a daily chart and a simple stochastic indicator.

Sell put options to collect premium while guiding the market to drop, enabling you to buy the stock at a discount and later use a covered call strategy.

Learn how the covered call income strategy works: own stock, sell a call option, collect premium, and balance upside potential with risk when the stock is called away.

Demonstrate the poor man covered call by buying a dip in the money call and selling a short call, considering intrinsic value, time value, premium, capital required, and maximum risk.

Explore a comparison of naked puts, traditional covered calls, and the poor man covered call, detailing downside risk, margin requirements, and ease of adjusting or rolling positions.

Compare the risk graphs of naked put, covered call, and poor man covered call to reveal their risk profiles and 120-day expiry scenarios.

Compare the dynamics of in-the-money, at-the-money, and out-of-the-money covered calls, including intrinsic value, extrinsic value, and break-even. Highlight capital requirements, returns, downside protection, and adjustments for ITM, ATM, and OTM.

Master rolling a covered call up and out to higher strikes or longer expirations, capture extra credit, and re-evaluate when the stock isn't called away; explore alternatives like nickel puts.

Predetermine the selling price for your stock by selling a call option, so you can sell at 250 and collect premium through a covered call.

Sell naked put options to collect premium while facing potential obligation to buy stock below the strike. Understand risk, break-even, and how this can lead to covered calls.

Learn how to roll and adjust naked put positions when markets move against you, manage premiums and breakevens, and transition toward covered calls as the position evolves.

Learn to construct a poor man covered call by buying a deep in-the-money, low time-value option and selling a near-term call, balancing intrinsic value and time value while managing risk.

Learn how to adjust the poor man covered call when markets move against you by rolling and managing dip-in-the-money and at-the-money options to recoup losses.

Explore an improvised variation of the poor man's covered call, using a longer-term option to substitute stock, and learn how to roll and adjust strategies for diagonal trades.

Compare the traditional covered call, the Nicot book approach, and the Pulman covered call, outlining their characteristics, risks, and when to adjust or roll.

Avoid contango stocks when using covered call strategies, as contango erodes profits over time. Do not trade contango stocks like VSX, especially with rolling trades, to protect gains.