A covered call is buying 100 shares of a stock then you can sell an OTM call, usually 5DTE, 30DTE, however long you want and you will collect the premium as you get closer to expiration, and any gains on your 100 shares. Hopefully, they expire worthless, and you collect all the premium, if the stock goes above your sold contracts strike price you may have to roll it (buying it back and selling another) to a higher strike price to prevent getting exercised. A poor mans covered call is using an ITM 120DTE-365DTE as your stock and then selling calls. Its called poor mans because buying 1 call that controls 100 shares for 1000 is cheaper than buying 100 shares of any stock. The difference: 100 shares allows selling 1 call, 100:1 1 ITM Call allows selling 1 call 1:1 It is cheaper and nicer for the smaller accounts. The dangers are worse though, getting exercised would force you to exercise your your deep ITM calls on a stock you may not have the money for. Robinhood typically exercises stocks in the night time 9-11pm CT in my experience. I would recommend closely mointoring and setting alerts on the stock in the app so you know when its time to roll. Example: In my portfolio that you can see I have 6 590 calls about 180DTE ITM contract of $SPY and I sold 2 calls 1DTE 594 strike price and i sold 4 calls 1DTE 595 strike price In total i may collect ~$600 in premium and whatever profit i have on my ITM calls. As of writing this i may have to roll my 594 calls lol. Ill wait for a dip down then roll