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![RolfOptions Avatar](https://lunarcrush.com/gi/w:24/cr:twitter::1345992789729955840.png) Rolf Stocks&Options [@RolfOptions](/creator/twitter/RolfOptions) on x 9646 followers
Created: 2025-07-22 13:05:03 UTC

IPMCC - backtest #2

I have manually backtested Income Poor Man's Covered Call (IPMCC) strategy, this time with more conservative deltas

Manually backtest means actual opening the long trade and then selling short calls every week in ToS OnDemand (Schwab)

Focus was on getting the premium paid for LEAPS call covered by extrinsic value gain from short call sold at around 7DTE

Entries:
XX delta LEAPS @$140 strike cost $XX
short calls entered at ~7DTE
short calls delta - around XX (0.3 calls)

Exits:
Closed short calls when extrinsic value lost ~80% or at the expiration day depending on conditions
___________________________
XXX days in the trade stats
Stock gained XX%
Total extrinsic value gains (sold to open minus bought to close) $XXXX per contract
Total Short calls P&L $-XXXXX
LEAPS call P&L $XXXXX

Total P&L $XXXXX
___________________________
Taking into account that extrinsic value gain is part of total short call P&L, obviously extrinsic value gains could not offset losses from short positions

Selling slightly out of the money (OTM) calls have produced better overall results vs ATM calls

![](https://pbs.twimg.com/media/GwYi6a9XkAEafoc.jpg)

XXXXX engagements

![Engagements Line Chart](https://lunarcrush.com/gi/w:600/p:tweet::1947644058157125809/c:line.svg)

**Related Topics**
[delta](/topic/delta)

[Post Link](https://x.com/RolfOptions/status/1947644058157125809)