PMCC-Alerts — Poor Man's Covered Call Engine
Python diagonal (Poor Man's Covered Call) signal engine
Deep-ITM long call anchor + weekly short-call income
Paper-trading only — outputs to Discord and structured event payloads
Overview
PMCC-Alerts runs a Poor Man's Covered Call — a capital-efficient diagonal that replaces the 100 shares of a covered call with a deep-in-the-money long call, then sells weekly out-of-the-money calls against it for income. It manages each leg on its own clock and books the short-leg premium cycle by cycle.
It is a paper-trading research tool, not a brokerage or a trade recommendation. No live orders are placed.
The two legs
- Long call (the anchor) — deep ITM, held. Default
~90 DTE @ 0.80Δ; a LEAP variant runs~365 DTE @ 0.85Δ. It behaves like a lower-cost stock proxy and is held, untouched while the short leg works. - Short call (the weekly worker) — OTM,
~7 DTE @ 0.30Δ, sold against the long.
Management
Short leg
- Take profit — buy back at 50% of the credit collected, then re-sell a fresh weekly short.
- Tested (spot ≥ short strike) — roll up-and-out to the next week's strike, net-credit-only (skip the roll if it would be a debit; hold instead).
- Expiry — worthless → re-sell; ITM → roll up-and-out.
Long leg
- Roll when its DTE falls below
--long-roll-dte(default 30), back out to--long-dteand re-centered to--long-delta.
Safety guard
At entry the setup is rejected unless:
net_debit ≤ (short_strike − long_strike)This guarantees that even a fast rip through the short strike stays a winner — the PMCC equivalent of "spread width ≥ debit."
Configuration
| Flag | Purpose |
|---|---|
--tickers | explicit symbol list (durable leaders suit the long hold) |
--long-dte / --long-delta | long-call target (90/0.80, or 365/0.85 LEAP) |
--long-roll-dte | roll the long when its DTE drops below this |
--short-dte / --short-delta | weekly short-call target (7 / 0.30) |
--short-tp-pct | take-profit on the short (default 50%) |
--broker / --broker-fallback | option-chain source (schwab, tradier) |
--state-tag | isolates a run's book and rolls it up separately |
--discord | Discord webhook target |
Outputs
- Discord — entry card (both legs, net debit, width, guard), and short-leg cards for take-profit / roll / re-sell — each showing the held long-call anchor so every message is self-contained.
- Structured events — the short and long legs post as separate
PMCC_SHORT/PMCC_LONGpayloads so weekly income reads distinctly from the long's slow P&L, rolled up by--state-tag.
Disclaimer
For educational and paper-trading research only. Not financial advice. Options trading involves substantial risk of loss.
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