When Should You Close a PMCC (Poor Mans Covered Call)?

[@StockandOptionMyLifeOfLearning]

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[@mikesurel5040]

I have mostly soured on the PMCC. I pick stocks that are too volatile and usually end up having to buy my short calls back for a loss before getting assigned. I suck at the short tern analysis and setting up trades. The wheel and risk reversals work the best for me. Also the occasional bullish put credit spread when the stock is a screamnng buy. Figuring out what works for you consistently over the long term is extremely important, as you have alluded to often in your videos over the years. Your videos have taught me a lot over the years. Thanks.

[@StockandOptionMyLifeOfLearning]

Thank you for sharing Mike 😊

[@YIWOTY]

Just made a 165% annualized on the cost of my long call on an UBER PMCC. Sadly, it was only a 15-day trade. I was tempted to hold the 09/19/25 deep ITM $55 LEAP for longer to sell more short calls against it, but the market looks very volatile at the moment, so I closed it out. I have scores of wheel and buy-write trades to track, and didn’t want to worry about this single long call contract. But PMCCs are extremely entertaining if risky.

[@StockandOptionMyLifeOfLearning]

Thank you for sharing

[@lorip1435]

Thank you for the very educational video. I don't think I have ever seen a negative delta on any of my trades, but then again, I do not do PMCC. Interesting.

[@SoloAle-lp4bc]

Thanks Randy 🍻

[@David-lp1mj]

Thanks Randy. Appreciate the discussion on your third point. I like this strategy on non-dividend paying growth stocks. Please consider a video on how and when to roll both calls if you want to stay in the trade especially if the stock makes a big move higher or lower.

[@StockandOptionMyLifeOfLearning]

Thank you for the suggestion 👍 I'll try to work that in soon.

[@joshuawoodford7525]

When you're bullish on the company (not hyper bullish). Low capital deployment vs a normal CC

[@cjhiggins1]

How did you manage the short call? Looks like the original 57.5 expired in Aug. Then at Sept 12th, you had the Sept 57.5. shouldn't you have rolled that up and out?

[@StockandOptionMyLifeOfLearning]

We had a cash secured put option position on in EBAY during this time frame but not a PMCC. If a trader had the exact position reflected in this video, then yes, they should have tried to roll it up as they rolled it out if they were still bullish.

[@ismaelersoz]

why on earth you would want to sell debit spread which is PMCC

[@cliffpinchon2832]

you mean "buy debit spread"?

[@StockandOptionMyLifeOfLearning]

With a PMCC, you buy a debit spread, not sell one. You buy a longer dated option and sell a nearer dated option against the one you own.