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Maximizing Returns with Covered Calls: A Deep Dive into Poor Man's Covered Calls

Covered calls are often touted as one of the best trading strategies for consistent portfolio revenue. However, the reality is that entering this arena with substantial capital—such as the $60,000 required to buy shares of a blue-chip stock like Apple—may not always be practical. Many retail traders find themselves in a position reminiscent of the guy who claims he doesn't need to drink to enjoy himself: they may be better off in the long term but often lack the immediate means to capitalize on such strategies. This article will explore the “Poor Man’s Covered Call,” an adapted strategy that allows traders with limited funds to mimic the benefits of the covered call approach.