# skill-leap-call-cc-overlay — checklist

Review before education output. This list does not approve a trade.

## When to use
- [ ] The long option is a LEAP or other far-dated call used for upside, not as a deep-in-the-money stock substitute.
- [ ] A nearer out-of-the-money call is sold against it for premium, knowing the gain can be capped.

## Setup
- [ ] Long leg expiry is much farther than the short leg. State both dates.
- [ ] Short call is out of the money relative to spot.
- [ ] This is a debit structure unless the numbers show otherwise. State the net debit.

## Rules of thumb
- [ ] Keep the ladder explicit. Do not let the two expiries blur into one.
- [ ] A sharp rally threatens the short call and caps gains above that strike.
- [ ] Flat, up, and down paths are part of the answer. Down can lose the debit.
- [ ] If the long call is deep in the money, use the poor man's covered call playbook instead and say why.

## Pitfalls
- [ ] Calling it covered when there are no shares and the long call is not a stock substitute.
- [ ] Short expiry so close to the LEAP that the overlay barely decays.
- [ ] Rolling the short call up and out until the long leg no longer covers the obligation.

## Disclaimer
- [ ] Disclosure is present: risks, the options disclosure document, and omitted costs.
- [ ] The answer is education. It is not a signal, a recommendation, or an order.