Subtitle: Leveraging Poor Man’s Covered Call with Rolling Weekly Premiums on Centene Corp (CNC) Amid Analyst Upgrades and Bullish Skew

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The CNC stock options strategy outlined here combines income generation with leveraged upside potential — using a Poor Man’s Covered Call (PMCC) setup and repeated weekly covered calls.

With Centene Corp (CNC) trading at $31.44 and earnings approaching on July 25, 2025, this strategy positions traders to benefit from time decay, IV skew, and analyst upgrades — all while risking less capital than buying 100 shares outright.

Learn more about Centene Corp

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🔁 Updated CNC PMCC Strategy (With Weekly Short Calls)

• Underlying: Centene Corp (CNC)

• Current Price: $31.44

• Bias: Moderately Bullish (Post-Earnings Recovery Setup)

• Catalyst: Earnings on July 25, 2025 (BMO)

• Time Frame: 6–12 months for LEAPS core + weekly income from short calls

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🧱 PMCC Structure

🟦 Long LEAPS (Deep ITM Core Position)

• Buy: CNC Jan 16, 2026 $25 Call

• Delta: ≈ 0.80

• Cost: $8.30 per contract ($830 total)

This gives you deep exposure to the upside with much lower capital than owning the stock outright. You also benefit from delta gains and long-term option leverage.

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🟩 Short Call (Weekly Income Engine)

• Sell: CNC Jul 18, 2025 $34C (delta ~0.15)

• Credit: ~$0.18

• DTE: 5 days

The short call generates weekly income while keeping your upside mostly uncapped.

Since implied volatility (IV) is elevated ahead of earnings, premiums are rich — and the theta decay accelerates as expiration nears.

💡 After expiration, simply roll the short call into the next week. Choose a slightly out-of-the-money (OTM) strike for the best balance between income and upside.

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🔁 Repeatable Weekly Plan

💡 If CNC jumps above your short strike, just roll up or out. You’re holding LEAPS, so there’s no assignment risk unless you let the call expire in-the-money.

After earnings, consider targeting delta 0.30 strikes for higher weekly income while still managing upside cap risk.

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🧠 Strategy Math

Even if CNC stays flat, this strategy still works.

You collect approximately $910 in premiums from weekly calls over 26 weeks.

That’s more than the $830 cost of the LEAPS call option.

So even with no stock movement, you’d end up with an estimated $80 profit per contract just from premium income alone.

If CNC rises moderately, your LEAPS gains accelerate thanks to both delta and vega benefits — especially around earnings volatility.

That’s where the PMCC structure shines: low cost, leveraged upside, and consistent cash flow.

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🔄 Adjustment Options

If CNC breaks out above your short call strike, roll the position forward or upward to capture more premium.

If the stock pulls back, sell closer-to-the-money calls for richer income while waiting for a rebound.

Adjust based on chart levels:

• Resistance = Smart strike for short call

• Support = Safety zone for LEAPS cushion

The flexibility of this structure allows you to adapt to both quiet and volatile price action without needing to own shares outright.

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✅ Why This PMCC + Weekly Call Strategy Works

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📌 Final Thoughts

This CNC stock options strategy blends low-cost leverage with steady premium income — ideal ahead of a potential earnings catalyst.

If you want to trade smarter, not harder, the PMCC with weekly covered calls may be one of the most profitable setups you can deploy this quarter.

Expand your knowledge further in our Stock Options Education Series.