# skill-poor-mans-covered-call — checklist

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

## When to use
- [ ] The holder wants covered-call mechanics without buying 100 shares.
- [ ] The long call is deep in the money and much farther dated than the short call, often a LEAP.

## Setup
- [ ] Long leg: deep in-the-money call, high delta, longer expiry.
- [ ] Short leg: nearer-term out-of-the-money call, sold against that long call.
- [ ] Capital at risk is the net debit, not the share price times 100.

## Rules of thumb
- [ ] Track the long-leg delta. If it is no longer a stock substitute, say so.
- [ ] Max loss in the illustration is the net debit.
- [ ] Early assignment on the short call needs a response: exercise or close the long call, or buy shares. Name one.
- [ ] The short strike stays above the long strike.

## Pitfalls
- [ ] A long call that is not deep enough, so the position is a long call plus a short call, not a stock substitute.
- [ ] Short premium smaller than the long-leg bid-ask and decay.
- [ ] Repeating the short call after the long delta has fallen.

## 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.