Poor Man’s Covered Call – SOUN

💵 Building income with a structured approach

I’ve decided to launch a separate strategy on SoundHour (SOUN): the Poor Man’s Covered Call (PMCC).

This will run in parallel with my credit spread setups — but here, the plan is different. It’s a systematic approach to generate weekly income while holding a longer-dated option as a synthetic stock replacement.

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What is a PMCC?

The Poor Man’s Covered Call is a variation of the traditional covered call.
Instead of buying 100 shares of stock, I purchase a deep-in-the-money, long-dated call option (LEAPS), which acts as a stock substitute at a fraction of the cost.
Against this position, I sell shorter-term calls each week.

Why Use It?

• Requires far less capital than owning shares outright.

• Generates steady income from weekly call sales.

• Maintains flexibility: if the stock rallies sharply, I can close the LEAPS for a profit or adjust the short leg.

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The Structure

• Long leg (core position): On September 3, I bought 3 deep-in-the-money calls expiring April 17, 2026, strike $9.00.
  👉 View this setup on OptionStrat
  

• Short leg (weekly income): Against that position, I will be selling short calls each week, always choosing the 10-delta strike, 3 contracts.
  

🔗 Trade Log

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Week #1

For the first week, I sold the September 5, 2025 $14.00 call (3 contracts).

• Premium collected: $32 net after commissions.

• If the option expires out of the money, I keep the premium and reset the short leg next Monday.
  👉 View the September 5th setup on OptionStrat

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The Ongoing Plan

Every Monday, I will:

• Sell 3 short calls with ~10 delta expiring that same week.

• Aim to capture $40–$60/month in net premiums.

• If SOUN makes an aggressive upside move, I can exit by selling the long April 2026 call — locking in gains.

📅 Week by week, I’ll track how this develops.

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Disclaimer  

All content is for informational purposes only and does not constitute financial advice.Any trades or strategies should be tested in a simulated environment before use.Trading involves risk, and all decisions are the sole responsibility of the reader.