VIDEO: How to Create Weekly Income With PMCCs and Synthetic Stock
The Smart Way to Generate Income Without Owning Stock & Why Tony Battista Loves Synthetic Covered Calls
This week’s Office Hours tackled one of the most powerful — and most capital-efficient — strategies an income trader has: generating covered-call income without tying up the cash to own 100 shares.
It was a timely one. With the market swinging on headlines, the traders who stay systematic and disciplined are the ones turning that volatility into recurring premium.
In the session, Tony Battista and Tony Rihan walked through:
Traditional covered calls — and why they’re more capital-hungry than they need to be
Poor Man’s Covered Calls (PMCCs) — using a deep-ITM LEAPS as a stock replacement
Synthetic covered calls — building synthetic stock from options, then selling calls on it
Weekly income generation, buying-power efficiency, and delta management
Real QQQ trades from the portfolio — including one with poor timing and one with good timing, on purpose
The one idea to take from the whole session: covered calls are bullish positions that happen to generate income — and you don’t have to own the stock to run them.
The full recording and our complete session notes are below, for paying members.
First, the mindset: covered calls are bullish
Most traders file covered calls under “income.” That’s only half the truth. At their core they’re bullish trades — they want stable-to-slowly-rising markets, they profit from time decay, and they benefit from volatility contraction. Treat them as bullish positions that throw off premium, and you’ll size and place them far better.
The problem with the traditional version is simple: it’s expensive. Owning 100 shares of QQQ ties up tens of thousands of dollars. Plenty of traders either don’t have that capital, or don’t want to commit it to one position. That’s exactly where the synthetic versions earn their keep.
Paid Members — Full Recording + Session Notes
