Most Singapore investors love the Covered Call strategy — but buying 100 shares of a premium stock is extremely capital-intensive.
That’s why high-income traders use the Poor Man’s Covered Call (PMCC):
a smarter, more efficient version of the Covered Call that gives you the same income potential with up to 90% less capital.
Instead of buying shares, you replace stock with a deep-in-the-money LEAPS call, then sell a short-term call against it.
This is one of the most efficient options trading strategies for long-term income.
💡 How the PMCC Works (Simple Breakdown)
The PMCC has two parts:
1️⃣ Long LEAPS Call (1–2 years expiry)
→ Acts like synthetic stock
2️⃣ Short-Term Call (30–45 days expiry)
→ Generates monthly income
This allows you to control the same 100 shares with a fraction of the capital.
💵 Real ~$1,000 Example (AAPL)
Here is a clean overview:
Step Trade Action Option Details Reason
1 Buy long-dated LEAPS call AAPL 150 Call (1–2 years) @ $45 Acts like stock, far cheaper than buying shares
2 Sell short-term call AAPL 200 Call (30 days) @ $3 Generates monthly income
Capital Needed ~US$4,500 (or choose cheaper LEAPS for ~US$1,000) — Incredible leverage vs. buying $19,000 in shares
Income $3 per share ≈ $300 every 30 days Equivalent of a monthly “rent”
This table makes it clear: the PMCC is simply a discounted Covered Call.
📊 How You Profit
1️⃣ AAPL stays below the short call strike
Your short call expires.
✔ You keep the income
✔ You sell another next month
✔ You create a consistent income system
2️⃣ AAPL rises above the short call
Your LEAPS call increases in value much faster.
✔ You still profit
✔ You can roll the short call up and out
✔ Upside remains controlled
3️⃣ AAPL falls
Your LEAPS loses some value, but slowly.
Your short call cushions the drop.
✔ Lower downside than stock ownership
✔ You can adjust strikes as needed
⚙️ Why High-Income Singapore Investors Prefer PMCC
✔ Requires ~$1,000–$2,000, not tens of thousands
✔ Generates predictable monthly income
✔ Works extremely well for expensive stocks
✔ Defines risk more cleanly than owning shares
✔ Highly efficient form of options trading
✔ A core strategy inside the Best Options Trading Course in Singapore for Millionaires
This is one of the most powerful ways to generate recurring cash flow without tying up capital.
**The wealthy don’t just buy assets.
They build systems that pay them every month.**
The PMCC is exactly that system.
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