Calculate Poor Man's Covered Call strategy with free Excel template download
Below is the Excel template structure with formulas. Copy these to your Excel spreadsheet:
| Cell | Parameter Name | Value/Formula | Description |
|---|---|---|---|
| A1 | PMCC Strategy Calculator | Title | Main title for the calculator |
| A3 | Current Stock Price | =50 | Current market price of underlying stock |
| A4 | LEAPS Strike Price | =40 | Strike price of long LEAPS call |
| A5 | LEAPS Cost | =12 | Cost of LEAPS option |
| A6 | Short Call Strike | =55 | Strike price of short call |
| A7 | Short Call Premium | =2 | Premium received from short call |
| A8 | Initial Cost | =B5-B7 | Net initial cost of strategy |
| A9 | Maximum Profit | =B6-B4-B8 | Maximum potential profit |
| A10 | Maximum Loss | =B8 | Maximum potential loss |
| A11 | Break-Even Price | =B4+B8 | Stock price for break-even |
| Cell | Stock Price | LEAPS Value | Short Call Value | Net P&L |
|---|---|---|---|---|
| B14 | =30 | =MAX(0,B14-B4) | =MAX(0,B14-B6) | =C14-D14-B8 |
| B15 | =40 | =MAX(0,B15-B4) | =MAX(0,B15-B6) | =C15-D15-B8 |
| B16 | =50 | =MAX(0,B16-B4) | =MAX(0,B16-B6) | =C16-D16-B8 |
| B17 | =60 | =MAX(0,B17-B4) | =MAX(0,B17-B6) | =C17-D17-B8 |
| B18 | =70 | =MAX(0,B18-B4) | =MAX(0,B18-B6) | =C18-D18-B8 |
PMCC (Poor Man's Covered Call) is an advanced options strategy that combines a long LEAPS (Long-term Equity Anticipation Securities) call option with short-term call sales. This strategy reduces capital requirements compared to traditional covered calls while providing income generation and defined risk.
Our PMCC calculator helps you analyze the potential profits and risks of this strategy by calculating:
PMCC requires significantly less capital than traditional covered calls since you're using LEAPS instead of owning the stock outright.
Selling short-term calls against your LEAPS position generates regular income while maintaining upside potential.
Your maximum loss is limited to the initial cost of the strategy, providing clear risk management.
Short-term options decay faster than LEAPS, creating favorable theta differential for the strategy.
PMCC (Poor Man's Covered Call) is an options strategy that uses a long LEAPS call instead of stock, then sells short-term calls against it. This reduces capital requirements while providing income generation and defined risk.
Enter your LEAPS and short call parameters including strike prices, costs, and expiration dates. The calculator will show profit/loss scenarios, break-even points, and provide a downloadable Excel template for detailed analysis.
The main risks include time decay on LEAPS, assignment risk on short calls, limited upside potential, and the need for the underlying stock to move favorably for maximum profit.
PMCC works best when you're bullish on a stock but want to reduce your cost basis and generate income. It's particularly effective in sideways or moderately bullish markets.
Break-even occurs when the stock price equals the LEAPS strike price plus the initial cost of the strategy (LEAPS cost minus short call premium).