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Options Playbook Webinar Recap: Mastering Poor Man's Covered Call (PMCC) in 5 Steps

Thanks to everyone who joined the Options Playbook live session on exploring the Poor Man's Covered Calls (PMCC) Options Playbook! 🙌

The energy, questions, and engagement from the moomoo community were incredible — you made the session come alive. For those who missed it, the replay is available now here:

[Options Playbook: Exploring the Poor Man's Covered Calls - moomoo Live Replay]

And yes…

🎁 I've also prepared below a FREE 1-page printable “Poor Man's Covered Call (PMCC) P.R.I.C.E 5-Step Cheatsheet” to help guide you with your first option trade so that you can execute with better conviction and confidence

📥 Download/Screenshot the cheatsheet here:

📋 What We Covered

In this session, we walked through a structured, rule-based framework — the P.R.I.C.E. Execution Framework — for identifying and executing Poor Man's Covered Calls (PMCCs), designed to be capital-efficient and probability-driven.

– The WHAT: Introduced the Poor Man's Covered Call (PMCC) as a capital-efficient alternative to traditional covered calls. The strategy uses a deep ITM LEAPS call (delta > 0.80, 1-2 years to expiration) as a "stock substitute" and sells a short-dated OTM call (30-45 DTE) against it. Key benefits include requiring significantly less capital than buying 100 shares, defining maximum risk to the net debit paid, generating monthly income through the short call premium, maintaining long-term upside exposure via the LEAPS, and requiring Level 3/Spreads options approval.

– The WHY: Explained the value of the 5-step P.R.I.C.E. framework for consistent, low-risk PMCC execution. This systematic approach aims to deliver probability-aligned returns and reduce guesswork by focusing on objective criteria at each step.

◦ P — Pick the right stocks as PMCC candidates using moomoo screeners (high liquidity, Stage 2 uptrend, options available 1+ years out).

◦ R — Review technical charts for LEAPS call leg selection: confirm Stage 2 uptrends, assess trend strength, and ensure IV Rank/Percentile > 60.

◦ I — Inspect the 'sell leg' with the Seller Dashboard: target 20-30 DTE, OTM Probability ~70%, and at least $1 in premium.

◦ C — Compare ROI configurations and probability metrics: evaluate net debit, max profit, break-even point, and max loss.

◦ E — Execute and manage PMCC positions with predefined risk management: liquidity check, position sizing, and roll management plans.

◦ Key Metrics Reviewed:

◦ Long LEAPS (deep ITM, delta > 0.8, 1-2y expiry)

◦ Short Call (OTM, 30-45 DTE)

– The HOW: Walked through the full P.R.I.C.E. Framework live on moomoo:

– The NOW: Applied the framework to the Breakout Playbook on growth stocks like NVDA, TSLA, AMD which you have long term bullish view, or even ETF PMCC Playbook using QQQ, SPY, SOXX for diversified exposure.

🏆 Quiz Results — moomoo Points Winners

Congratulations to everyone who answered correctly!

Q1: In a Poor Man's Covered Call (PMCC), which of the following best describes the relationship between the strikes and the net debit?

A) The maximum potential profit is unlimited, similar to owning the stock outright.

B) The maximum loss is limited to the net debit paid to enter the spread. ✅

C) The break-even point is simply the strike price of the long LEAPS call.

D) The short call's premium is added to the net debit to determine total cost.

Q2: In a Poor Man's Covered Call, the short call expires in-the-money (ITM). What is a possible outcome for the investor?

A) The investor is obligated to sell shares they do not own, creating a naked short position.

B) The investor's long LEAPS call will be automatically exercised to cover the assignment of the short call. ✅

C) The investor will always be assigned 100 shares of stock at the short call's strike price.

D) The investor can choose to let the short call expire and keep the long LEAPS.

Both questions tested the core mechanics and risk parameters of the PMCC strategy. Well done to all who participated!

🔍 moomoo Tools We Used

– Screener → Filter for high-liquidity, uptrending stocks with LEAPS (options 1+ years out)

– Technical Charts → Apply Stan Weinstein's Stage Analysis (Stage 2 for uptrends) and review IV Rank/Percentile

– Seller Dashboard → Inspect and filter potential short call legs based on IV Rank and probability

– Options Chain + Options Curve → Read the Expected Move and compare strike prices

– Strategy Builder / Multi-Leg → Construct the PMCC spread (long LEAPS + short call)

– P/L Analysis → Evaluate key trade metrics: net debit, max profit, break-even, and max loss

⚠️ Critical Reminder

PMCC is a defined-risk debit spread strategy requiring Level 3/Spreads options approval. Defined risk does NOT mean no risk — you can lose 100% of the net debit paid. The short call caps your upside. Assignment on the short call requires managing the long LEAPS leg. Always paper trade first.

🏠 Your 3 Action Steps This Week

1. 📸 Screenshot/download the PMCC Infographic cheatsheet and keep it handy

2. 📥 Paper-trade one PMCC setup on moomoo this week using all 5 P.R.I.C.E. steps

3. 💬 Post your setup in the comments using the hashtag #PMCC or in the Options Chat Group — I'll give feedback!

Follow @OptionsPlaybook on moomoo Community for regular setups, upcoming webinar announcements, and free resources.

Signal Identified. Scenario Reviewed. Risk Defined. 📈

⚠️ Disclaimer: For educational purposes only. Not investment advice. Options trading involves significant risk and is not appropriate for all investors. All examples are hypothetical and illustrative. Past performance is not indicative of future results. Offered through Moomoo Securities Malaysia Sdn. Bhd. (SC Malaysia, CMSL No. eCMSL/A0397/2024) and Moomoo Financial Singapore Pte. Ltd. (MAS, CMS Licence No. CMS101000). Please consult a licensed financial adviser before trading.

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