Spot When to Use the Poor Man's Covered Call/Put
The Poor Man's Covered Call and Poor Man's Covered Put is a great limited risk Option Strategy for any trader, new or veteran, that can be used in any trading account. The Poor Man's Covered Call will perform similar to a long a stock position, paired with a Covered Call and Protective Put (aka Collar Option Strategy). A trader (or investor) will immediately recognize the benefits of using this option strategy in lieu of buying the stock and creating a collar... Oh and they both require significantly less capital than using stock! Further the Poor Man's Covered Put will be of interest to anyone who has ever considered shorting a stock but did not want the risks or the headache of shorting stock.