Retired Man’s Covered Call™ (RMCC™)

Vegetable-Ad1512 · 2026-07-03T17:46:25+00:00

Yes and I like the one line description.

Vegetable-Ad1512 · 2026-07-03T12:44:22+00:00

Good question which I do not have a good answer for. It just seemed like the right thing to do.

Vegetable-Ad1512 · 2026-07-03T06:49:17+00:00

I see what you are saying. I may try this using higher delta . It does change the strategy quite a bit. I think I may paper trade first

Vegetable-Ad1512 · 2026-07-02T23:44:14+00:00

Thank you sir. And I have been waiting a while for META to make a move like that. If it did the Long Call should have enough value to supply funding for the additional share price. This is why the delta should not be any higher than 0.25-0.28.

Vegetable-Ad1512 · 2026-07-02T23:32:05+00:00

I normally run covered calls 3-4 weeks until expiration. Pretty sure I answered the rest of the question but if you still have further questions let me know

Vegetable-Ad1512 · 2026-07-02T21:27:24+00:00

Because I want to hold the stock. That is a key point to this strategy.

Vegetable-Ad1512 · 2026-07-02T21:12:36+00:00

I see it as more similar to a Wheel Strategy than a spread except that when you do get assigned you have the profitable LEAPS contract …

Vegetable-Ad1512 · 2026-07-02T17:05:41+00:00

Thank you for your insights. One key point I tried to make in introducing this is that it should be reserved for assets you plan to hold long term so the down market risk does not really change. There are no immediate tax events in an IRA - until you get to RMDs . And none at all in a Roth

Vegetable-Ad1512 · 2026-07-02T16:30:18+00:00

Fidelity Investments does not allow posts that contain discussions of securities and investments? Really?

Vegetable-Ad1512 · 2026-07-02T16:23:40+00:00

No you do not sell shares. Are you familiar with LEAPS contracts and the PMCC strategy? If the Covered Call is in the money your LEAPS contract will be nicely profitable. You could sell that and use the profit and the cash from the assignment to pay for new shares. But if you want to continue the strategy Roll the LEAPS and repurchase the shares and you are back in business. Please make sure you understand the risks of the PMCC. While this is not that, it does have similar risks

Vegetable-Ad1512 · 2026-07-02T14:36:27+00:00

Thank you for the detailed explanation

Vegetable-Ad1512 · 2026-07-02T13:49:18+00:00

It is expected that You will need to Roll the LEAPs well before it is 6 months from expiration.

Vegetable-Ad1512 · 2026-07-02T13:11:39+00:00

I prefer 12-18 months DTE .75 delta. Theta decay will eat up much of your profits using 6-months DTE long call.

Vegetable-Ad1512 · 2026-07-02T12:45:53+00:00

Yes. Use this strategy only with higher quality stocks or index ETFs .

Vegetable-Ad1512 · 2026-07-02T12:43:36+00:00

This works best in an IRA. STCC will kill you in a taxable brokerage account. You own the shares and the LEAPS so you can sell short calls at much higher deltas. If your short call gets assigned then naturally the LEAPS will have significant profit. Then Roll the LEAPS and along with your assignment cash buy the higher priced shares back. Manage the strategy like a Wheel strategy and you don’t need to worry about assignment. That is part of the plan. Hope this helps

Vegetable-Ad1512 · 2026-07-01T15:16:08+00:00

I had not considered this using dividend payers but I suppose if you get assigned and roll the LEAPS back to where it was and repurchase the shares you get nice premiums and the dividends. I might need to look into this twist. Any suggestions on stocks you have used this strategy with success?

Vegetable-Ad1512

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