Selling calls on a stock or ETF already owned is a common strategy, known as the covered call. But there's a big challenge to it: You first have to have 100 shares of that stock or ETF and getting those shares may be pricey. So, what if an investing strategy was out there that could help you do something similar, but at a lower cost? You might want to consider the poor man's covered call. The strategy involves buying an in-the-money LEAPS call with a long time to expiration, and then selling an out-of-the-money nearer-term call on the same security. Want to learn more? If so, join The Options Industry Council on Aug. 14 for a free webinar. We'll go over:
- Setting up the poor man's covered call
- LEAPS as a stock substitution
- The traditional covered call
- A comparison of covered call strategies
We'll also be sharing plenty of examples, so you can see what types of profits and losses this particular options strategy can produce. Be sure to join us - register now! Registration also gives you access to an on-demand event replay that you can watch at any time.