Calculate your PMCC breakeven price, max profit potential, and adjusted LEAPS basis as you sell short calls over time. Track how much of your initial LEAPS cost you've recovered through short call premium.
A poor man's covered call (PMCC) buys a deep-in-the-money long-dated call (LEAPS) and sells short-term calls against it. As you collect short call premium, your adjusted LEAPS basis drops — lowering your breakeven and increasing your max profit potential.
The key metric is how much of your initial LEAPS debit you've recovered. At 100% recovery, the LEAPS position becomes essentially free — any further short call premium is pure profit.