Just YouTube search poor man covered calls, pretty much all don't tell you how to close the long call. Most only cover if you only sell 1 call. It's like briefly explain what's a PMCC is.

Someone mentioned IBKR can't trade PMCC without Margin. But Robinhood only applicable for US sad

https://www.interactivebrokers.com/en/tradi...gin-options.php

what you can and cannot do... looks like can do with eu style options

Kindly check your pm. I send you a link to a telegram group full of people who does options.

Like I said just so many times. Just apply for margin. You don't need to use it. As long as your cash is positive, you will never be charged any interest for it for IBKR.

can send to me also? look see a bit what ppl doing... thanks.

me three anyway with original covered call, you buy shares that you meant to own in the first place. the premium sold is a "bonus" on top of it

but in PMCC, your aim is to earn by selling premiums. and you'll be continuously buying far out DTE calls so there'll be time value decay there

This post has been edited by Medufsaid: Jun 9 2022, 08:16 AM

Can you pm me too?
Thanks

please pm me too

just post the link on page 1 bro.. anyone who wanna learn can join. I pun interested

if mind then pm2 me please?

This post has been edited by Davidtcf: Jun 8 2022, 04:39 PM

Later Crowded inside. Hmm i'm sticking to traditional Wheel Strategy for now and slowly grab that 1% premium on weekly basis (I know i'm greedy).



For this, my initial CSP Strike $10.50 got assigned and it got called away at $8.50. = Result in Realized Loss of $200 per contract
So let's say if the stock is trading at $8.2, and i Sell PUT Strike $8.50, which is Deep-in-the money for higher premium.
If at the expiry the stock hit below $8.50 and i got assigned.

Then my excel calculation should be (For my own reference)
[-$10.50 + (Premium for CSP $10.50) + $8.50 + (Premium for CC $8.50) + (Premium for CSP $8.50)] * 100 = Which still ended up at a loss, but on my own record this loss should be consider as an "Unrealize" loss instead of "Realized" loss right? Cause i got the share back to me.

This post has been edited by Lon3Rang3r00: Jun 9 2022, 09:20 AM

i stick to how my broker calculates. that is, realised losses counted via last in-first out.

e.g., 1. Long shares at $A
2. short shares at $B
3. long shares at $C

I'll count the P&L of 2 & 3 as realised

Ya maybe I should do this, just finalized and concluded after each trade. If profit then realized profit. If loss then realized loss..

this one still an open position, so what's in that i consider as unrealised P&L

here's one with year long stats mainly on pmcc...

Hmm I wonder how he's holding up ... That video is taken last year November... But option does have the potential to get really high reward/year... Provided you're right every time. But I still not sure how Diagonal Spread in actual trading. Will check on the paper trading account. And maybe use his method of 3-4 months DTE but I'll go with 2 months just to have a taste of closing the long leg

diagonal spread means two contracts at two different expirations and two different strikes... it's a combination of calendar spread and vertical spread

the two contracts can be both calls or puts only or combination... and can be both otm or itm+otm... options strategies can be really complex because of this flexibility

pmcc is just buying a far dte itm call that mimics holding 100 stocks... and selling near dte otm call for premiums...

market can be bullish, bearish... there's a diagonal for it... beauty of selling options is the the maths/statistics are slightly in you favor so you don't have to be right all the time... but you still have to manage it... for sideways, there are other better strategies...

to get the maths/statistics on your side... you need to understand the Greeks, IV, etc... this will help you select the right stock and what strategies to use...

This post has been edited by dwRK: Jun 9 2022, 10:17 PM

Dang love that Robinhood interface, the application is like tailor made for Option Trader. (Ignore the big 250% and advise to use 1.5x speed)

Looking at his first trade, i wonder if we're able to set a Limit Profit like 40%, and let the brokerage to help you sell to close when it reach the limit. Not sure how it work in real-life but it will be pretty cool (except you may ended up with a naked call because the Long-leg got closed prematurely). He made it look simple with the breakdown, so i'll assume that's how Buy Long-Leg (Leap) and sell CC and buy CC at a loss just to save your long leg

This post has been edited by Lon3Rang3r00: Jun 9 2022, 11:12 PM

watched the video and i'm dying to know how his trade turned out. he bought a call @ $220 with Feb 18 2022 expiry. SQ is @ $97.70 on that day

think he bought around 2nd week of Nov... sq was around 227... he had 4 days in profit before the stock reverse and start losing money...

This post has been edited by dwRK: Jun 10 2022, 10:35 AM

At that point of time they didn't expect the market to go down so much. Like right now, we also unsure if we already hit the bottom of the market.

Let say Square now which is trading at $78, If were to buy LEAPs Deep-in-the-money Strike $60 expiry 2024. If suddenly Square goes back up to $150 in a year time (which may or may not happen) then The leap option will profit around (the picture below)



Actually how to see this chart, the one my cursor on shows $5946 (176%) meaning the LEAP can be sold at around $5946? which is 76% profit after minus the expenses?