The Truth About Trading

he Poor Man's Covered CallQuestions we’ll answer:What is itWho is it forWhen to use itThe Poor Man’s Covered Call is a very specific type of spread.  As you know we’ve been covering option spreads for several Coffee With Markus Sessions. We have an entire playlist discussing the pros and cons of each type of options spread. In this video, we’re discussing the difference between trading stocks, covered calls, and the poor man’s covered call. Trading StocksLet’s take a look at trading stocks first. Let’s say that you’re bullish on a stock like Boeing. You might purchase a decent amount of stock, let’s say 100.  Right now this stocks strike price is $180.  If you purchased 100 shares of Boeing, at $180 dollars each, this would require $18,000 in purchasing power. If the stock increases by 10 dollars, to $190, you stand to earn $1,000 in net profit.  So you’ve risked $18,000 to earn $1,000. Trading Covered CallsIn this example, let’s say that you’re still bullish on Boeing. And in the short term, you expect an up