I was given this book years ago as a christmas present probably in 2008/09 time frame.. Since such time that book has sat on my investment book shelf collecting dust. As everyone knows there was quite a crises in the financial markets between then and now and I was busy just trying to protect the assets I had and not purge too much of my hard earned money. Just recently though I was talking to a co-worker who has been using an Iron-Condor strategy to trade options and has been fairly successful with it averaging double digits returns for the last few years. So I said to myself "hey you have a book on options sitting on your shelf collecting dust". I took the book down and read it, then I read it again... I then returned and re-read a few sections of the book that I didn't quite understand. Here is my take for all of Amazon.
1) There is some good information in this book and that can be applied in real life. In fact I'm paper trading a few of the covered call rules and techniques in my think or swim account and seeing slightly better returns than I would have without selling covered calls. If you have a good understanding of technical indicators and market trending and you pick correlating stocks in strong companies you can definitely squeeze some extra money out of your positions.
2) One of the first things any truly successful investor will tell you the key to becoming successful in the market is to not lose money. That being said I totally throw out all the managing a losing position crap. If I planned a position out and set that plan in motion and then it turns against me... I'm out (instantly) I take my small loss lick my wounds and go back to the drawing board. I find out what went wrong and go from there. Never hold a loser...
3) The seminars.. if your interested in this technique the book is more than enough info to get started. I use online stock screeners instead of their website which work just fine and I don't use all of their rules as stated I certainly have my own. Plus there is so much free information out there on options you don't need to pay anyone to access this information. And as far as I can tell the seminars are just repeating the same stuff in the book... sorry not gonna pay a couple grand to listen to someone repeat their book to me.
In summary, If someone gives this to you as a present or you take the plunge and spend the 75 bucks to read it your probably gonna learn some stuff. But take what you can from the book and move on from there and for the sake of your retirement acct DO NOT use any of these techniques without paper trading (fake trading) them first! Also, on a side note I don't recommend any of these techniques in anything but an IRA or uncle sam is gonna come take a big ole bite out of any profits you might have made.... and by the sounds of if that bite is about to get a lot bigger. I hope this helps anyone interested in this book or the technique.
People...wake up...Hooper is a complete Fraud! I am a professional trader and know what I am talking about. His techniques might "make sense" in theory - but try them in practice over the long haul and you will be no better off than if you closed your eyes and threw darts at a board as a means for picking stocks. Hooper says that there are ways to "manage out" of any position but this is completely untrue - when a stock drops dramatically (and believe me, there will always be stocks in your portfolio which decline quickly); there is NO POSSIBLE WAY for the "techniques" Hooper outlines to recover your losses (his TSS "rental" techniques and CPR tactics DO NOT WORK in practice even if he tries to tell you they work in theory - the real world out there isn't so rosy people).
True, you CAN from time to time make 3%-6% on stocks via covered calls when your stocks move very little and/or move upwards after buying them - however when a stock drops 10%, 20%, 30% or more, the techniques are useless. Believe me - I was a client of the Joe Hooper organization (Compound Stock Earnings) for years and have TONS of actual experience with his techniques...quite simply put; you will be wasting your money with him. He is a crochety curmudgeon who will tell you to screw off if you ask him too many questions about his techniques (he especially does not like insightful questions from people more intelligent than him) - I saw him berate several people both in person and over email multiple times, and watched in amazement. He is truly a bad (and extremely greedy) person. He is only after one thing - your money (through is seminars and monthly subscription services). You WILL lose money in the long run, and you WILL waste your money if you purchase this book and/or attend any of his seminars and/or subscribe to his stock/call recommendations. Trust your instincts - hope is eternal and unfortunately many people will fall for his dog and pony show, and will be posting their own complaints about Hooper here in a year or two themselves.
My one concern is the TSS which can lock you into a position. While I like the strategies in this book, you must really stick with these strategies and spend lots of time ensuring you are watching and turning over your stocks. I also do not think you should put more than 5% of your account into one name. Ensure you are still adhering to risk controls you can live with.
Also, I read a lot of examples in the book about a stock at 19.75 and selling a 20 call for $1.00, I do not see these types of front month calls being sold these days. That would only exist in a super volatile stock! Calls with 5% monthly premium are high for a reason. Always remember, high priced options are high for a reason, it means they are very very risky for the seller especially, hence the premium.
For about a year, I actively traded two accounts using the methods taught in this book. These are the same techniques taught during the authors' two-day intensive seminar. Over the last two years, I have spoken with well over 100 graduates of the authors' two-day intensive seminar. Interestingly, all of us have a similar experience to share. If you purchase the book and try the technique, odds are that you will have the same experience as well. Here's how it will go:
1) The method appeals to your logic: Buy a stock and collect instant income by selling a covered call. If your stock goes down in value, don't sell the stock at a loss like the rest of the world, instead, continue to collect monthly income on the stock whether the stock goes down, up or sideways. One day, when the stock is back to break-even, then we sell the stock. In the meantime, we collected 3%-5% income per month by renting out the stock! Sounds so good that you plunk down $3,750 for the two-day intensive seminar just to make sure you learn the method properly. You also invest in the $1,200 per year toolbox and covered call selection service.
2) The first few months of trading are great! Sure enough, you buy a stock, sell a covered call and instantly have 3%-5% cash income from the selling the call. Secondary calls on stocks that fall a bit are easy too: "Look at me - just made another 4%!" Anyone who asks (and even if they don't) - "Yep, I'm making 3%-5% income per month, how about you?"
3) After the first few months, several of your positions are in "management." Things are getting a bit more difficult now. Fewer and fewer dollars are available to start new positions that generate the easy money. Further, the TSS - used to generate "rent" on fallen positions - just isn't as easy as it looked. The stocks for several TSS's have been going up instead of down like they were supposed to do. This leaves you upside down with a loss on these TSS's. Now, because you're a bit gun-shy about selling more TSS calls, you have a couple more positions for which you haven't done anything for the month. Total income for the month has dropped a bit - "but hey, I still made almost 2% for the month, that's as much as many people make in a year!"
4) Realizing you probably need some help with TSS'ing, you e-mail Joe with a question. In response, Joe berates you by calling you a moron for thinking too much, for missing an obvious "inverted V" where you should have sold a TSS, and missing another obvious "V" where you should have bought it back. Joe then publishes your whipping in the "Cow Report" for all to read. The seminar is in town next weekend, so you attend again to brush up on the TSS and to talk with other investors. As they go around the room, every alum states they are making 3%-5% per month - wait a minute - that person just admitted he's only making 1%-2% per month. Joe humiliates him, which convinces you to state you're making 3%-5% per month should they call on you.
5) After another couple of months, a substantial majority of your positions are now in management. Many TSS's are upside down. Several of your stocks have fallen substantially in value, but you haven't TSS'd them as often as you should have. You tried an SSR to rescue one of your TSS's, but it did not get called out. Now you have a LEAPS that just lost 60% of it's value during the last month when the stock fell just 10%. How did that happen? Why did this SSR "rescue" technique leave us in more trouble than when we started? You know we don't speculate on stock price movement (like the stupid people on Wall Street), but you've noticed that success with new positions, TSS, SSR, SSSR, CPR, etc., all require that you properly guess the future movement of the stock.
6) It's all about cash flow, not account value, but after nine months, you can't help but notice your account values are down over 25%. Astonishingly, even though your taxable account is down 28% in value, you're having to pay short term capital gain taxes on the $25,000 in cash flow "income" you generated! Frustrated with your lack of success, you decide to pay Joe and Aaron another $3,000 to attend the Master's seminar.
7) The Master's seminar was exciting and fun! Some good points were made and obviously the method works for some people. Look at all the people who claimed they were making 3%-5% per month on the survey forms. Actually, you claimed that as well - "Yes, my account dropped $28,000 in value, but I reported $25,000 in cash flow to the IRS. That's close enough to 3% per month."
8) It's been almost a year. At 3%-5% per month - with all income reinvested - your accounts should be up at least 40% in value. Instead, your accounts are still down over 25% in value. It's just really hard picking the right time to enter new positions and deciding when to sell and buy back those TSS's. This new advanced charting seminar should help. Let's give Joe and Aaron another $2,000.
9) Advanced charting helps, but you're still certainly not growing your account at 3%-5% per month. Many acquaintances who started at the same time as you have given up on the method. Frankly, several of them have really good points as to why this technique isn't working. Maybe they're right. It's been over a year, you've given Joe and Aaron over $10,000 of your hard earned money, you're accounts are down in value by 30%, and to add insult to injury you've had to pay the IRS income tax anyway. Oh my God! What have I done??...
I was first introduced to Compound Stock Earnings by finding their weekly radio show on KABC 790 in Los Angeles. I was so intrigued after listening to their show about selling covered calls as a means of making 3 to 6% monthly cash by renting your stocks for income that I immediately found their book on amazon.com, purchased and read it cover to cover.
As a person who knew nothing about stock market investing I found this book to be a valuable resource in providing the tools and a system for a novice investor like myself to understand a rules based program of investing to turn my stock assets into real cash every month. The book is laid out chapter by chapter to teach the system in as easy to understand sequence. I was able to open an account and begin paper trading to test the system without risking any capital. The system works as predicted to earn 3% or more monthly when adhering to the rules.
For anyone looking for a better way to invest their money, I would highly recommend this book. The information is clear, organized and doesn't require an MBA in business or finance to understand how to apply it. I only wish I had discovered CSE years sooner!
I have been using the CSE methods for about 1 ½ years. My husband and I have always had financial planners manage our investments because we never felt that we had the time to spend maximizing our money - we wanted to have people who had trading experience and financial training manage our investments. We found over and over that when our money was in mutual funds and the market went down - we always lost a substantial portion of the last 3 or 4 years gains. We even sat through a dinner where our financial planner told us that despite losing almost 15% of our total portfolio that year, our investments would still gain over 10% a year - after the market adjustment. What he was really saying is that in another 1 ½ years we would be where we started. About that time one Saturday morning we were listening to a radio program with Joe and Aaron talking about making money in a stock market regardless of whether the market was going up or down. My skeptical nature and limited time to devote to managing my investments had me listen to the show and take the free introductory online seminar multiple times before I decided to invest in the CSE method. I have never regretted the decision! I quickly saw that with a little learning on my part, I could manage our investments and earn 2 to 6% a month by simply following the CSE methods. You are probably thinking the same thing that I thought - no way could somebody with no financial training earn 24% to 72% a year in the market. Despite what anybody tells you, it is possible if you are willing to spend the time learning the system and apply it. If you can't follow a system, cannot make decisions based on what you learn, and are not willing to invest your money based on what you have learned , then you will not be successful and I would not recommend spending the time or money for this program. But if you can learn new systems, apply them, and are willing to learn to invest based on what you have learned , you will be successful. How successful is directly relational to the amount of effort you spend in learning the system and applying it. I am now earning money, even in this down market, when everyone else I talk to is losing money on their investments. This incredible gift will allow me to pass on our wealth to my children. My children will be able to attend a college of their choice and will not have to base a career on earnings, but rather they will be able to do what they enjoy. I cannot think of a better gift to give my sons.
The CSE method teaches you a set of easy to learn rules that takes me between 20 minutes to 1 hour a day to manage my investments. Unlike other investment strategies, the CSE method has rules that work in both up and down markets. The investment strategy is conservative and forgiving if things do not go the way you thought they would. The support from Joe and Aaron and now several clients who have become staff has been exceptional. Where else can you take a seminar over and over again for no additional cost? Joe and Aaron and their staff are available to help you via email, phone support, and on-line coaching. The CSE staff continually improves on the techniques, adding new rules for problems other clients have encountered or tweaking rules based on client refinements. In the short time that I have been affiliated with CSE, they have introduced about 6 new techniques to help increase clients' returns. CSE also provides an on-line toolbox to help clients select new positions and manage existing ones. This toolbox was great from the start. But that isn't good enough for Joe and Aaron. They continually add features to make it easier for their clients.
Joe, Aaron, Ed, Mark D, Mark S, Jennifer, Tiffany, etc. - I cannot thank you enough for making my dreams a reality! There really is a light at the end of the tunnel!
Product Details :
Hardcover: 240 pages
Publisher: Wiley; 1 edition (November 3, 2006)
Language: English
ISBN-10: 0470044705
ISBN-13: 978-0470044704
Product Dimensions: 6.3 x 0.9 x 9.2 inches
More Details about Covered Calls and LEAPS--A Wealth Option + DVD: A Guide for Generating Extraordinary Monthly Income 1st edition
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