All termsOptions StrategiesWorth knowing
Poor Man's Covered Call
A Poor Man's Covered Call is a commonly used name for a diagonal call strategy that uses a longer dated long call alongside a shorter dated short call rather than owning the underlying shares directly.
Why it matters to you
It can provide a capital efficient structure with some economic similarities to a covered call, but it is not identical to owning stock and selling a covered call. Its Greeks, expiration risk and assignment mechanics differ.
Terms that sit next to this one
Short Call