How much capital do I save with a poor man’s covered call versus owning the stock?

How this is calculated

• A poor man’s covered call replaces the 100 shares of a classic covered call with a long-dated, deep in-the-money call, then sells a shorter-dated call against it, the same structure a classic covered call uses against owned stock.
• Capital saved equals the cost of buying the stock outright minus the net debit paid for the diagonal. This is the core appeal of the strategy: similar income mechanics for a fraction of the capital.
• The max loss shown is a simplified worst-case figure equal to the net debit paid, the same convention this site uses for its calendar spread calculator. The two legs expire on different dates, so the diagonal’s exact breakeven and true worst case depend on the long call’s remaining time value when the short call expires, which depends on implied volatility, not just the strikes. This tool does not invent that number.
• This assumes standard American-style equity option contracts covering 100 shares each.
• If the short call is assigned early, you owe 100 shares per contract you don’t actually hold as stock, only as a long call. Exercising the long call to cover, or buying shares outright, are both live possibilities you should plan for in advance.