A poor man's covered call is also known as a credit spread. In this case, the "poor man" either doesn't have the funds to purchase the 100 shares of the equity, or just doesn't want to buy the equity. In this case, the "poor man" sells his covered call and then buys one at a strike price slightly further out of the money (for less than the call he sold). The "poor man" gets to keep the difference, known as the credit. The risk is the difference between the strike prices. A credit spread (or poor man's covered call) is a riskier transaction but requires less money upfront, and one for another article.