Options Research Lab PRO
POOR MAN'S COVERED CALL · MODEL RESEARCH

Long LEAPS call + repeated short calls, tested as one position.

Read Me First — PMCC Pro

PMCC Pro combines a deep-in-the-money long-dated call with recurring short calls. It marks both legs with Black-Scholes on the bundled SPY or QQQ return path, rolls the long call before expiry, settles each short-call cycle, and compares the total position with a same-capital stock benchmark.

Important: this is a model-based historical-underlying study, not a reconstruction of archived option chains. Historical SPY/QQQ returns are real; option prices are generated from realized volatility plus the IV-premium assumption you select.

PMCC specification

One long call and one short call are modeled. Short calls are cash-settled at cycle expiry and immediately reopened when feasible. The long call is closed and replaced when its remaining DTE reaches the roll threshold.

Choose a specification and run the study.

What this study is designed to answer

  • Does repeated short-call premium improve the economics of a long-call stock-replacement position after the short-call losses are included?
  • How sensitive is PMCC performance to long-call delta/DTE, short-call delta/DTE, IV richness, and long-call roll timing?
  • Does PMCC improve drawdown or capital efficiency relative to a same-starting-capital stock benchmark?
  • When does the short-call overlay cap too much upside or create repeated losses during strong advances?

Recommended first study: keep the long leg fixed at 545 DTE / 0.80 delta and compare short-call deltas 0.15, 0.20, 0.25, and 0.30 at 30 DTE. Then repeat at several IV-premium assumptions. Do not select the best historical combination and treat it as a proven rule.