Cow Report Feb3 2007

The Cow Report – February 3, 2007
“There are bulls, there are bears and then there are cows.
Cows use Covered Calls to generate consistent monthly income from a stock
investment to meet living expenses or to compound the growth of a portfolio.
By definition bulls and bears are wrong half the time, whereas a cow
consistently produces returns, regardless of market direction."
Table of contents
Client of the week ……………………… 3
Joseph Hooper’s weekly editorial ……………………… 5
Update of this week’s activities ……………………… 10
How to get educated ……………………… 16
Upcoming Seminars ……………………… 18
Special offers ……………………… 19
Tune into our weekly radio show ……………………… 21
LEAPS stock of the week ……………………… 22
Covered Call Toolbox ……………………… 23
CLIENT EMAIL SECTION ……………………… 25
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What we do
Let’s get right to the point. There is a better way to invest your money.
For over 7 years we have been teaching investors how to make a cash return
of 3 – 6% per month from their stock investments, regardless of market
direction.
We achieve these remarkable returns through a proprietary application of the

Covered Call technique, which has been developed and practiced by us for
over 25 years.
Our clients use this technique in both retirement and non-retirement accounts.
The large monthly returns can be reinvested to dramatically compound the
growth of a portfolio or withdrawn on a monthly basis to provide cash income
in retirement.
Does 3%– 6% per month, regardless of market direction, sound too good to
be true? We invite you to listen to dozens of recorded interviews with our
clients who achieve these returns, month after month, year after year, through
good markets and bad - just CLICK HERE.
Client of the week
Compound Stock Earnings Founder, Joseph Hooper and Aaron Zalewski host
"UNCONVENTIONAL WI$DOM - The CSE Investment Show", a weekly
financial talk back radio program airing in Dallas, LA, Boston, Chicago and --
Atlanta. Unlike regular financial talk shows, which are full of esoteric fodder
like paying off your credit cards or picking a better mutual fund - we talk about
how you actually make money in the stock market through the use of Covered
Calls.
Each week we have a different client on the show as our guest and the show
is then archived on our website. The client of the week is Don from
Arkansas. Don is a long term CSE client and specializes in the LEAPS
technique. Don came to use prior to retiring. He had the assets he needed to
retire, but wanted to do better with these assets to provide a higher standard
of retirement living. After just a few months, Don realized he was generating a
very significant monthly income from his retirement assets and decided to
retire before he originally planned. Don now realizes returns in excess of 60%
per year on his assets and has done so for several years.
To listen to ’s appearance on our radio show - CLICK HERE.
To listen to past radio shows CLICK HERE.
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These links may take some time to download.
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Joseph Hooper’s Weekly Editorial
...well, we had a super 2-Day Intensive in Dallas last weekend...
....the facilities were great....we hope to be using the new location as often as
we can........
....so many exciting things going on here at CSE...."WANT

PROOF?"...what in the world are we talking about?...go to our website at the
following page https://www.compoundstockearnings.com/want-proof.htm
...this is a new feature of our website...as it says.."it is a work in
progress"....we are going to start posting the actual brokerage statements of
accounts traded using our Covered Call and LEAPS techniques.....the first
account you see shows actual returns of 100% over one year for a LEAPS
account...Jan 06 to Dec 31 06.......the actual statements month by month are
also shown...this particular account was traded primarily with our LEAPS
technique....so..you see..LEAPS can be extremely profitable, but you have to
first gain experience with using our Covered Call technique before you
progress to using LEPAS....100% for the year in account growth for this
account.... Will be posting other LEAPS accounts with similar returns very
soon…
....Also, by the time you read this Cow Report there will probably be another
account statement up..if not... in the next few days... this account was traded
with conventional covered calls and the statement will show the expected
returns for traditional covered calls...it will be 2 years of statements month by
month......
...pretty cool....here is what is exciting...if you have been to the 2-Day

Intensive Seminar...you are eligible to attend the up coming LEAPS Seminar
on February 17th and learn how to get these extraordinary returns.....if you
cannot attend in person..attend on line...it is a one day Seminar and you will
learn how to produce those same 100% returns on your brokerage statement
using LEAPS.....go to our website, www.compoundstockearnings.com go to
"Upcoming Seminars - REGISTER"...go all the way to the bottom of the
page and register for the LEAPS Seminar..........
....here is what significant about this new feature.....brokerage

statements are always more negative due to the way they treat the
accounting for options....so when you see these returns...they are
conservative....
....more exciting things...this last Wednesday, January 31...we held the

second "Coaching Seminar"...it was a great success...2 hours and 15
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min...nothing but taking clients positions and "fixing" them or what ever...it is
live..you see my trading screen and the toolbox...you askquestion...people
hear you...you hear them...
....in the Wednesday session...there were two questions about stocks

down...Aaron showed how to use the CPR to exit the positions....he showed
how to use the toolbox to exit these position this month for above average
returns...EVEN THOUGH THE STOCK PRICES WERE DOWN
SUBSTANTIALLY....the cool thing..each position was already "in the money"
and would be called out by the third Friday....just such great stuff.....just the
returns on those positions paid for the new "coaching service" over and over
and over.....even is you don't have a position...it pays to listen for your will
always pick up something that will help you exit position when you need too
and don't think it possible....... Click Here to sign up for Market Hours
Online Coaching…
.......We have a new Scholarship recipient....we will announce the name in the
Cow Report next weekend.....want to contact the person.. get pictures to put
in Cow Report etc. etc.
....advanced notice...lots of new things being added to the ToolBox over the
next several weeks....charts on selections..earnings announcement dates...
and other things.... best to subscribe if you want the old prices.........here is a
link at the old prices.... You can subscribe to the Covered Call Toolbox
for $80 per month. Click Here.
..ok, this last Wednesday, January 17th, we had the first "Market Hours
Online Coaching Seminar"...this is a two hour on line Seminar held every
other Wednesday.. the next one is Wednesday, January 31......it is live and
during market hours.....
“Covered Calls and LEAPS: A Wealth Option” now published!!!
.....Wiley Publishers has printed our book, “Covered Calls and LEAPS: A
Wealth Option”.... The forward to the book has been written by Robert
Kiyosaki, author of “Rich Dad, Poor Dad” and the highest selling personal
finance author of all time.
Our book outlines in great detail in over 200 pages the exact Covered Call
and LEAPS processes, rules and techniques to achieve consistent monthly
returns of 3 – 6% from a stock portfolio.
......biggest surprise of all....attached to each book are two segments of the

Master's Class 2-Day Seminar HD DVD.... one 3 hour DVD featuring our long
term client Don showing how he uses our LEAPS technique to generate
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returns allowing a fine retirement income and the other 3 hour DVD featuring
our long term client George showing how he does the same thing with
traditional covered calls.....there is around 6 hours of classroom training
included in these DVD’s....and they are free when you buy the book....what a
deal....
....lots of interest from most of the national financial papers and magazine
publications...you might see some really interesting articles about Compound
Stock Earnings in those publications real soon.....
Order a copy today from our website:

https://www.compoundstockearnings.com/book/?product=CCWEALTHOPTIO
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Tips for using the Toolbox
......for those that subscribe to the Toolbox.....sometimes as as the option

month progresses you will find that the screener for conventional near month
covered call positions might not show any selections at sometimes during the
day....
...what you need to do is adjust downward the "called out returns" and the "if
not called out returns" from the default values...
...why....?
...because as the month goes forward the returns go down so if you have the
default returns in the screener you will have fewer selections...
.....for example the + 3.9% returns assume the first day of the new option
month.....so half way through the month you should be using half of 3.9% or
1.5% or so....your returns will be the same for the month because the money
will out for a lesser number of days.....
....ok....that might help and will answer a lot of the emails that
come in that say...."help....no selections today".....
....just use your head and adjust the rates.........
Download our radio show to your iPod
..........don't forget that you can download to your MP3 player our radio
shows if you will just go to our website www.compoundstockearnings.com
and right click on the shows to download......
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..........if you have an IPOD...go to itunes and go to PODCAST, search for
"unconventional Wisdom" and download the radio shows....
Scholarship Program Continues
........listen...in January 07 we will be starting the new month for the

Scholarship program.. first Seminar is in Atlanta ....a deposit of $5,000.00 will
be made to a brokerage account in the name of each winner for
the month.....we will draw the name from a hat during our radio show the first
week after the close out of the Dallas Seminar each month (Dallas is always
the last Seminar for the month and will be December 2-3)......
....the way it works is that all the young folks (14 years old to 21 years old)
who attend the 2-Day Intensive Seminar on conventional covered calls during
a month with their parents (the young folks attend free) will have their name
put into the hat for the drawing for that particular month......
...at present we have a Seminar each month in Boston, Atlanta, Chicago,

Dallas and Los Angeles ...except in December when we do not have any
Seminars......exception is for the first week in December we will have a Dallas
Seminar to make up for one not held over Thanksgiving .....
....for each of the young folks who attend any of those Seminars during a
particular month (starting this last September, 2006)....their name will go into
the hat for the drawing for that month.....in other words, all those young
folks who attend in Atlanta, Boston, Chicago, Dallas and Los
Angeles in Octobrer will have their name put into the hat and then we will
draw from that hat on the first radio show after the Dallas Seminar.....then all
names will be taken from the hat and we will start over for the new
month.....so if some young folk want to have their name back in the hat for the
new month, they will need to attend again....this way they reinforce their
knowledge of our technique etc....
...there is only one hat and those attending the Seminars in each city will all
go into the same hat...in other words, there is only one $5,000.00 scholarship
per month, not one for each city where the Seminar is held........
.....these young folks are doing great with the use of our program....if you
want to be the best parent ever...sign up for one of our 2-Day Intensive
Seminars and bring your kid or kids.......for free....
........set them up for life financially................
...........let's move on................
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Attend a FREE LIVE ONLINE introductory workshop
These sessions are held each Tuesday evening from 7.00 – 9.00pm Central
Time. They are conducted live over the internet, so investors from all over
the world can attend in the comfort of their own homes.
At these online workshops, we provide an introduction to our Covered Call

technique. Investors are also invited to discuss particular positions they hold
and we will demonstrate how to lock in a MONTHLY return of between 3% -
6% on a stock investment.
To register for a free online introductory workshop - CLICK HERE
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Update of this week’s activities
Here is an update of the week’s activities. The transactions below are ones
executed by us. We also send these transactions out real time, as they
happen, to our Covered Call / LEAPS Selections subscribers. Watching what
we’re doing in our accounts is a great way for clients to learn to the practical
application of the technique!
Subscriptions to Covered Call / LEAPS Selections service is $100.00 per

month. (You can only subscribe if you are a graduate of the 2-Day Intensive
Seminar.)
To subscribe to the Covered Calls / LEAPS Selections service just Click Here
Here is an update of the Open and Closed Positions for our Managed
Covered Call Selection service. It shows all positions that have been entered
into and closed out and the returns. It also shows the transactions that have
been entered into and are still open and the net income to date from that
position.
MANAGED COVERED CALL SELECTIONS - COMPLETED AND OPEN POSITIONS
RETURN ON ENTIRE PORTFOLIO

All Positions Average At 3-Nov-06
All Positions Days Held Return
AVERAGE 57 6.9%
AVERAGE PER MONTH 3.8%
AVERAGE PER YEAR 55.6%
1. Average per year includes monthly compounding
The above table shows the current return over the entire portfolio since March
2005. The return is 3.8% per month or 55.6% per year. Please see the next
page for a list of the open and closed positions in that portfolio. The open
positions are the positions in the portfolio that we are currently managing and
the closed positions are those that have been profitably completed.
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OPEN POSITIONS
Stock Details Near Month or TSS Call
Date Purchase Days Net Prem Short Call
Stock Purchased Price Held To Date Exp. Strike Price
EOG 26-Apr-06 $75.15 191 7.7% Jan-08 $50.00 $19.70

ELOS 22-Mar-06 $29.62 226 8.1%
EXP 23-May-06 $50.07 164 1.3% Apr-07 $40.00 $6.50
GG 21-Aug-06 $29.64 74 8.6%
JOYG 22-Jun-06 $49.78 134 6.2% Jan-08 $25.00 $14.80
MTH 10-Jan-06 $66.58 297 28.4%
NLS 11-Jan-06 $19.65 296 13.5% Jan-08 $10.00 $3.20
NVT 11-Jul-06 $40.20 115 14.7%
PSUN 7-Feb-06 $24.61 269 10.4% Jan-08 $12.50 $8.40
SNDK 11-Apr-06 $61.38 206 19.1%
URBN 24-Feb-06 $27.73 252 24.0%
WIRE 28-Sep-06 $36.85 36 9.9% Apr-07 $17.50 $6.10
AVERAGE 188 12.6%

* Net premium to date =
1. Uncalled return on positions that have near month calls. And / Or
2. Net premium received from calls that have expired or have been bought to close.
ie: Net Prem to Date does not include premium from open TSS call positions
Please see the next page for the completed Managed positions over the last
12 months.
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CLOSED POSITIONS
Date Days
Stock Opened Date Closed Held Return
RES 17-Aug-06 25-Oct-06 69 16.7%

RS 25-Jul-06 21-Nov-06 119 14.5%
THE 20-Sep-06 25-Oct-06 35 6.2%
TDW 18-May-06 8-Nov-06 169 8.4%
Last option month 3.6%
Prior to last option month

AAPL 20-Apr-06 26-Sep-06 159 6.6%
HXL 24-Sep-06 20-Oct-06 26 6.8%
IRF 28-Sep-06 20-Oct-06 22 3.8%
MTW 28-Sep-06 20-Oct-06 22 4.3%
NUE 7-Sep-06 20-Oct-06 43 6.2%
SII 5-Oct-06 20-Oct-06 15 3.4%
BEAV 23-Aug-06 15-Sep-06 22 4.1%
CAL 17-Aug-06 15-Sep-06 28 4.2%
GFIG 7-Sep-06 15-Sep-06 8 2.4%
NTRI 22-Aug-06 15-Sep-06 23 5.7%
THE 29-Aug-06 15-Sep-06 16 4.2%
WIRE 22-Aug-06 15-Sep-06 23 4.3%
AUO 25-May-06 18-Aug-06 84 11.0%
GME 26-Jul-06 18-Aug-06 23 5.4%
RIMM 20-Jul-06 18-Aug-06 22 4.7%
SSL 20-Jul-06 18-Aug-06 28 6.6%
TPX 24-Apr-06 18-Aug-06 115 10.7%
BJS 27-Apr-06 21-Jul-06 66 8.9%
CBI 24-Apr-06 21-Jul-06 73 8.0%
NOV 20-Jun-06 21-Jul-06 136 4.0%
USNA 21-Mar-06 21-Jul-06 227 11.0%
NOV 22-May-06 16-Jun-06 25 4.8%
YHOO 4-May-06 25-May-06 21 4.3%
MEE 27-Jan-06 3-May-06 96 14.6%
PCLN 18-Apr-06 3-May-06 15 4.6%
MGM 17-Feb-06 21-Apr-06 63 9.5%
TDY 15-Mar-06 21-Apr-06 37 5.9%
THE 22-Mar-06 21-Apr-06 30 6.3%
YHOO 5-Apr-06 21-Apr-06 16 4.0%
CAI 18-Jan-06 17-Mar-06 58 7.6%
COGN 3-Feb-06 17-Mar-06 42 4.3%
ECA 7-Feb-06 17-Mar-06 38 6.7%
GLBL 17-Feb-06 17-Mar-06 28 4.1%
NSS 22-Feb-06 17-Mar-06 23 4.0%
NVT 25-Jan-06 17-Mar-06 51 7.8%
PII 6-Feb-06 17-Mar-06 39 3.8%
PLCE 23-Feb-06 17-Mar-06 22 4.5%
THX 8-Dec-05 17-Feb-06 71 12.4%
SCHN 17-Jan-06 17-Feb-06 31 3.9%
COHR 11-Jan-06 17-Feb-06 37 4.4%
GTRC 20-Dec-05 17-Feb-06 59 9.5%
FMD 13-Dec-05 17-Feb-06 66 12.7%
CHKP 19-Dec-05 20-Jan-06 32 4.1%
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COGN 28-Nov-05 21-Jan-06 54 6.0%
MBT 8-Dec-05 22-Jan-06 45 4.7%
OI 15-Nov-05 23-Jan-06 69 8.1%
VCLK 10-Nov-05 24-Jan-06 75 13.6%
OVTI 20-Jun-05 23-Jan-06 217 19.7%
ADCT 30-Aug-05 16-Dec-05 108 14.9%
AHM 2-Dec-05 16-Dec-05 14 2.5%
CREE 9-Nov-05 16-Dec-05 37 5.7%
ENER 16-Nov-05 16-Dec-05 30 7.9%
FDG 14-Nov-05 16-Dec-05 32 5.5%
WFR 25-Oct-05 12-Dec-05 48 22.2%
MIK 22-Nov-05 23-Nov-05 1 2.8%
EPL 8-Nov-05 22-Nov-05 14 1.5%
MT 8-Nov-05 18-Nov-05 10 2.8%
CREE 12-Oct-05 21-Oct-05 9 5.4%
JBHT 25-Jul-05 11-Oct-05 78 3.5%
CAMD 29-Sep-05 4-Oct-05 5 2.6%
TPX 29-Aug-05 16-Sep-05 18 2.9%
ZQK 8-Sep-05 16-Sep-05 8 2.2%
OS 24-Aug-05 30-Aug-05 6 6.2%
TOMO 8-Jul-05 20-Aug-05 43 5.3%
WFS 15-Jul-05 20-Aug-05 36 4.0%
NTGR 28-Jul-05 10-Aug-05 13 8.9%
VTIV 4-Aug-05 8-Aug-05 4 2.5%
DRIV 19-Jul-05 28-Jul-05 9 5.0%
SYNA 21-Apr-05 19-Jul-05 89 5.1%
KOMG 21-Jun-05 18-Jul-05 27 0.4%
RECN 6-Jul-05 16-Jul-05 10 1.9%
PALM 8-Jul-05 14-Jul-05 6 7.9%
IIG 27-Apr-05 8-Jul-05 72 5.1%
IIG 7-Jun-05 8-Jul-05 31 11.2%
IIJI 1-Jul-05 8-Jul-05 7 5.4%
PLAY 21-Jun-05 6-Jul-05 15 2.6%
PALM 21-Jun-05 30-Jun-05 9 6.1%
NAVR 7-Jun-05 22-Jun-05 15 8.5%
MDR 27-Apr-05 20-Jun-05 54 4.5%
TSM 13-Jun-05 15-Jun-05 2 0.6%
ELOS 10-Jun-05 13-Jun-05 3 2.0%
CEDC 2-Jun-05 10-Jun-05 8 3.1%
ASPT 1-Jun-05 7-Jun-05 6 1.1%
SHOP 21-Mar-05 2-Jun-05 73 19.8%
PALM 23-Mar-05 24-May-05 62 5.7%
DRDN 20-Apr-05 4-May-05 14 4.0%
NAVR 29-Mar-05 27-Apr-05 29 9.3%
IIG 30-Mar-05 25-Apr-05 26 7.4%
DRIV 22-Mar-05 18-Apr-05 27 3.5%
KOSP 29-Mar-05 30-Mar-05 1 4.3%
Average prior to last option month 6.4%
Closed transactions average

AVERAGE 40 6.3%
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Here are the Covered Call / LEAPS positions that closed out this week from
our Covered Call / LEAPS Selections Service.
LEAPS Selection Service - Close outs this week
Return on Annual
Stock Strike Position Hold Time Return
CKFR $30.00 5.6% 9 228%

BMY $25.00 25.0% 6 1521%
AA $30.00 6.7% 190 13%
Covered Call Selection Service - Close outs this week

Return on
Stock Position Price
TOMO 3.1% $15.05

JBHT 7.3% $25.46
JBHT 4.2% $25.43
Remember, our returns are represented by real cash, not paper values that
can disappear as quickly as they appear. These cash returns can be
withdrawn and spent on whatever you desire or all or some positions can be
left to compound your values into significant figures as time goes by.
Unlike speculating in stocks, when writing covered calls, the day to day
market value of the stocks and LEAPS is not significant. It is the cash returns
produced each month that prevent you from finding yourself in a situation
where you have to liquidate a stock at a loss to generate income. You receive
every month returns that the average stock speculator would be overjoyed to
have on a yearly basis.
If you have stocks and are not selling calls against them each month, you are
leaving large amounts of cash on the table month after month. Every month
you do not sell covered calls against your stocks you are simply making less
money and exposing yourself to more risk. If your broker says it is risky to
sell calls against your stocks, he is ignorant of the covered call technique (like
most are) and you need to take control of your own financial future.
Subscriptions to Covered Call / LEAPS Selections service is $100.00 per

month. You can only subscribe if you are a graduate of the 2-Day Intensive
Seminar.
To subscribe to the Covered Calls / LEAPS Selections service just Click

Here.
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Non 2-Day Intensive Graduates can subscribe to the Covered Call
Toolbox (without the Selections service) for $80 per month. Click Here.
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How to get educated
For a country so focused on education, our level of financial literacy is

incredibly poor. The Street, serving it’s own interests, has taught us all the
wrong ways to invest.
Even the most business savvy and educated generally have no idea how to
effectively invest for growth throughout their working lives and for income in
retirement.
The world is caught up in a speculative “buy and hope” mentality to secure

their financial futures. To the correctly educated, the foolery going on in the
investment world today is almost criminal.
You need an education about how to invest your money. No one else is
going to do it for you. You wouldn’t be reading this if your financial advisors
had consistently made you money in both good markets and bad.
Attend a FREE LIVE ONLINE introductory workshop
These sessions are held each Tuesday evening from 7.00 – 9.00pm Central
Time. They are conducted live over the internet, so investors from all over
the world can attend in the comfort of their own homes.
At these online workshops, we provide an introduction to our Covered Call

technique. Investors are also invited to discuss particular positions they hold
and we will demonstrate how to lock in a MONTHLY return of between 3% -
6% on any stock investment.
To register for a free online introductory workshop - CLICK HERE
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2-Day Intensive Seminar
Our 2-Day Intensive Seminar provides the most comprehensive Covered Call
education available anywhere in the world. The seminar is also offered online
through a live audio visual link over the internet - so attendees can learn in
the comfort of their own homes.
The Seminar explains and significantly elaborates on every topic contained in

Covered Calls: A Wealth Option and covers much, much more.
The most vital function of the 2-Day Intensive Seminar is to show investors
the practical application of our proprietary rules and techniques for Covered
Call investing. This is the information that simply can't be passed on through a
book.
Investors leave the 2-Day Intensive Seminar with an unprecedented

knowledge of the Covered Call technique and are ready to begin investing the
very next day.
Our 2 Day Intensive Seminar includes our 180 page “Covered Calls: A Wealth
Option - Seminar Manual” which is the most comprehensive covered call
manual ever compiled and is not available for separate purchase.
Also included in the 2 Day Intensive Seminar package are 10 two hour
audiovisual Herd Talk CD's (a separate $700 value).
The 2-Day Intensive Seminar Package is $2,995.
To register -
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Upcoming Seminars
2-Day Intensive Seminars
Our 2-Day Intensive Seminars are held EACH MONTH in selected locations.
Upcoming events include:
• Atlanta – February 3 & 4, 2007

• Boston – February 10 & 11, 2007
• Chicago – February 17 & 18, 2007
• Dallas – February 24 & 25, 2007
• Los Angeles – March 3 & 4, 2007
To register for a 2-Day Intensive Seminar -
Remember we allow all our past graduates to re-attend any seminar for free,
at any time they choose. The reason we do this, is so people who are brand
new to our technique can meet network with “seasoned pro’s” who have been
using our Covered Call technique for years. It is very rare that we ever hold
a seminar where there isn’t at least two clients in attendance who have been
using our technique for over a year. Come along and you’ll hear their
successes first hand.
Additionally, our Dallas seminars are offered online – so you can attend them
from the comfort of your own home and without having to travel. This is
achieved through a live audiovisual link over the internet. If you attend online,
you see exactly what the live audiences sees. You also get to hear the
presentation, hear the audience’s questions and ask questions yourself.
Online attendance is exactly like sitting in the live seminar room, except
without the expense of travel. Online attendees are then entitled to attend as
many live seminars as they wish, at any time in the future.
To register for a 2-Day Intensive Seminar -
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Special Offers
Educate your children for free
You know one of the greatest missed opportunities by many clients is not
teaching their teenaged son or daughter our covered call technique...what for,
you ask??....well, there is no better way for a young person to provide for their
own college education and life thereafter than learning our technique....
....what brings this up is the ever increasing number of clients signing up for
the 2-Day Intensive and paying to bring along their sons and daughters...
The last three 2-Day Intensives we have had a Father who is currently using
the technique, pay for and bring along a son so that he can start investing
too... pretty smart move as it turns out....
.....a deposit of $5,000.00 when a child is around 13 will turn into $93,395.92
by the time the child is 18 and graduates from high school....that assumes
you use our technique to do conventional covered calls and average 5% per
month......that provides funds for tuition .....with enough left over to continue to
produce monthly income to pay for the other expenses.....what an
opportunity!!.....
.....we have clients who have teenage sons and daughters (and
grandchildren) who are earning better monthly returns than the parents....For
example, many of you would have heard our great client Kevin recently on
our radio show "Unconventional WI$DOM". Well, Kevin's been earnings
4.5% per month over about 12 months now. He’s also got his two sons
involved and they are averaging around 4% a month. How is that
possible?....because these young folks do not have the limiting mindsets of
the parents because they have not been exposed to the corrupt thinking of
main street investment advisers and brokers.....
......a good example is how quickly young people take up and master
computers.....I am still trying to figure out how the radio
works.....anyhow.....point is that young folks are mastering our technique
quicker than their parents.....
.....once you set them up, you have given them the ability to pay for a college
education and have a nest egg that will give them the ability to continue to
build their wealth and maximize life's opportunities once they are out of
college by not having to take some "job" so they can pay off college loans etc.
or take a "job" to be able to pay the rent....besides...it will assure they will
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move out of the house quicker....because they will graduate college and have
immediate income if they continue to invest.....
...can you think of anything better to give or teach your children??!!....you

really set them up for life.....
....something else on this subject...Aaron is a good example of what a young

person can do.....when Aaron was 20, he purchased our book “Covered Calls:
A Wealth Option” emailed me from Australia stating that he wanted to learn
the technique so he could leave his job in investment banking, invest with our
technique and became financially independent....he did in a big time way....in
a short time...
.....is there a better place for your teenager to get motivated than to bring
them to a 2-Day Intensive, meet Aaron and expose them to a golden
opportunity that can change their lives forever??!!.....
....as a special motivating benefit, Aaron will take all the teens attending the 2-
day Intensive to lunch during our lunch break to discuss with them the
benefits of learning this technique early in life, paying for their education and
building a life with wealth vs. having to take unrewarding jobs just to get
along....Aaron can be a much more motivating influence than most parents
because he is young and started learning our technique at a young age and
the younger folks can identify with him......
......we will help with this. If you want to sign up for the 2-Day Intensive in
Dallas (June/July/August) or Boston (August) you can bring your teenagers
for FREE.
... just pay the regular $2,995 for yourself (all the other benefits remain like
support, attend as many times as you wish etc etc).. and bring them
along.....here is a link for that purpose...this is a special price and only for
your own children..... You can call Sylvia to register, or CLICK HERE.
-20-
Tune in to our weekly radio show – “UNCONVENTIONAL WI$DOM”
Compound Stock Earnings Founder, Joseph Hooper, and Aaron Zalewski

host "UNCONVENTIONAL WI$DOM - The CSE Investment Show", a weekly
financial talk back radio program airing in Dallas, LA, Boston, Chicago,
Atlanta. You can listen live over the Internet from anywhere in the world at
www.krld.com (Dallas), www.wrko.com (Boston), www.wlsam.com (Chicago),
www.wgst.com (Atlanta) www.kabc.com (Los Angeles).
Apart from taking live callers, we have a long-term client on the show each
week as our guest to talk about their returns using our technique. Tune in,
and you'll hear how our clients are making returns between 3% and 6% per
month, even those who had never bought a stock in their life before becoming
Compound Stock Earnings clients. After their appearance on our radio show,
we interview them and post these interviews on our Web-site.
To listen to past radio shows CLICK HERE.
-21-
Joseph Hooper’s LEAPS Stock of the Week
Each week we put the LEAPS stock of the week in this location. The stock for
this week is ISSC. The top of the cycle (circle) indicates when you should sell
the call and the bottom of the cycle (X) indicates when you should buy it back
for a gain. Just look at all the returns that could have been made with ISSC
over this particular period!! Buy HERD Talk Two and find out how to do all
this buying and selling, just CLICK HERE to buy the CD. Each CD is $69.95.
-22-
CSE Covered Call Toolbox
CSE Covered Call Toolbox
What is the Covered Call Toolbox?
The Covered Call Toolbox is a proprietary search and filter tool developed by
us specifically for the use of our technique. The toolbox completely replaces
and improves on PowerOptions, searching for positions with REAL TIME
PRICES and is tailored specifically to meet our rules for finding and
constructing positions.
The toolbox includes the following items:
1) CSE Screener – Covered Calls (REAL TIME PRICES)

2) CSE Screener – LEAPS (REAL TIME PRICES)
3) Option Chain (REAL TIME PRICES)
4) SSR Worksheet
5) CPR Worksheet
Following is a screenshot of the new CSE Covered Call Toolbox:
-23-
Existing clients who currently subscribe to Covered Call / LEAPS Selections
get the new Toolbox for FREE. Existing Covered Call / LEAPS Selections
subscribers can CLICK HERE to sign up for their FREE password to the
Toolbox. Only current Covered Call / LEAPS Selections subscribers can use
this link (the system will only recognize email addresses of existing
subscriber’s PayPal accounts). If you cancel Covered Call / LEAPS
Selections, you’re subscription to the Toolbox will also be cancelled.
To subscribe to the Covered Calls / LEAPS Selections service + Toolbox

just Click Here. Only 2-Day Intensive Seminar Graduates can subscribe.
Non 2-Day Intensive Graduates can subscribe to the Covered Call

Toolbox (without the Selections service) for $80 per month. Click Here.
-24-
CLIENT EMAILS
This is our favorite section of the weekly Cow Report… why … because it is
the most educational. You will learn so much from these client emails and
our responses.
………………………………………………………………………………………….
Joe & Aaron,
Great session online today, very impressive, listened for the entire 2 hours
and 20 minutes.
There is no other methodology, no trading system, no trading approach, that I

am aware of, that will allow an individual the flexibility to continuesly generate
cash flow, while managing a particular trade back to even or positive.
This is by far the best approach to managing risk, generating cash flow,
producing consistant returns, and growing wealth, that exist in the markrts
today.
Nothing, and I mean nothing, is comparable to the trading methodology, the

trading matrix used by CSE.
I am impressed, I really am, great, great gob, tremendous !!!!!

Will call in the morning, the brokerage statements did not copy well, can not
read some pages, some pages are missing.
Talk with you tomorrow.
Bill
Dear Bill;
Aaron and I were so delighted to hear you on the "coaching" session today!!
We really appreciate your comments. Simply here is what is significent....you

are a financial professional...your fund is in the top 50 earning funds in the
country....you know what is going on....you handle millions if not billions of
other people money and you recognize that our techniques are the most
efficient for producing consistent monthly returns in the single and double
digits......what more can be said...thank you
-25-
Joseph R. Hooper
Your welcome Joe !
In all reality, I am simply telling it like it is, no hype, no embellishment, no BS.
CSE, has developed the single best methodology, the wisest approach to
trading the equity markets, bar none.
Joe, I have been trading a good part of my life, I was educated and trained by
several of the worlds most famous, well known, accomplished traders.
These are great men in their own right, yet they have not put it altogether in
the way CSE has.
There is nothing like what you have developed, simply nothing compares.
You are at the top of your game Joe, CSE is the best there is.
RIDE THAT THAT COW !!!!
Talk with you and Aaron in a bit.
Bill
Mr. Hooper,
If you go to Bloomberg.com and search on "news" for SIRF, you will see an
article where an "expert" from Oppenheirmer downgraded this stock from
"buy" to "neutral" on January 16. As of 11:45 this morning, this stock is up
more than 23% from yesterday's close. This would be funny except for all of
the people who sold this stock based on this "expert's" opinion.
Bill
Dear Bill;
Yep....investors just love to loose money on a stock....they just love to beat

themselves up...self inflected wounds....oh well there are investment fools
born every moment...give you another example...Google yesterday
announced a very large increase in profits and other good news...as of this
moment ...6:46 am cst Feb 1, 2007..the pre-market for Google is down -
-26-
6.50....let's just watch..bet it goes up before the day is over....
....the worse thing in the world for investors are "experts" at major street
firms....the money they cause investors too lose is beyond belief..
Thanks for your note...
Joseph R. Hooper
Hi Joe,
Attended the seminar on-line last weekend, enjoyed it very much and got a
some good info/pointers. Will try to attend in LA in a couple of months as I'd
like to meet you and Aaron in person.
I've been really digging in the past few weeks and started with a couple of
transactions last week using the CSE Covered Call Screener.
When using the screener at default settings, it appears that the "%52 week
range" is not working correctly.
For example, on Jan 19 the Covered Call Selections included NTRI at 62.10
and DRIV at 51.58, both of which showed up on the CSE Covered Call
Screener. The 52 week high for NTRI is 76.33, so 76% (the default setting) of
$76.33 is $58.01. The 52 week high for DRIV is 60.99, so 76% of $60.99 is
$46.35.
Right now, I just unchecked "Default" and put "27" in place of "76" and NTRI
still pops up. The price of NTRI has really dropped like a rock in the past
couple of days, but not down to below 30% of the 52 week high.
Like many others, for me interpreting the charts seems to be the mostdifficult
and subjective thing. During the seminar you pulled up a chart of NTRI and
said that was not a good choice. However, it was included in the Covered
Call Selections a week earlier. Is that because you've had it in the past and
felt that it was on an overall (as opposed to "current") upward trend? Just
want to make sure I understand what the Covered Call Selections are telling
me.
Lastly, I overheard mention of a list of 200 or so stocks... not sure what the list
is used for, but would you please send it to me and let me knowwhat criteria
is/was used to select those stocks and how the list should be used.
Thanks,
-27-
Andrew
Andrew,
the rule is 75 percent of the 52 wk high-low. Not of just the high.
You've got the rule wrong, not the toolbox.
Thanks
aaron Zalewski.
Ahhh, my apologies Aaron. Thank you very much for the quick reply.
Just pulled out the book again and understand that parameter now.
Thanks again.
-Andrew
Hi Aaron,
Good job on bringing in the seminars and I am relistening to it today as well. I

like this much better than the old format.
Carol
Dear Carol;
Thanks for your comments. Your comments are important because you know
what is going on.
We really appreciate you.
Thanks,
Joseph R. Hooper
Hey Joe,
Just got your book and devoured it! Things are starting to gel... however, I do
not own any stock - plan to stockpile enough cash to get started over the next
-28-
1-2 months. I live in the UK and plan to move back to the States (where my
wife and 2 teenage daughters now live) I plan to bring the whole family to
Dallas to see you and Aaron in action... several questions: 1.If your 2-day
just happens to fall near the 3rd Fri expiration - would it be more
advantageous to attend thIs seminar as option/stock prices are at the first of
the month to construct positions (in class)? versus other seminars that fall on
middle or late in the month... 2.Do I have had to attend a 2-day to get on the
list for your new fund? if not, please add me 3. Same questions as above
for your stock list 4.I feel confident to do some 'virtual trading' - however,
knowing what 'order entries' to make still seems a little foggy... seems like
there are many that are talked about in the newletter but can't seem to recall
any in the book other than the GTC - how would you recommend that I learn
the various techniques to open/close positions etc.? I want to open a account
and virtual trade using the 'free month' of toolbox, but don't want to waste time
learning how to 'execute' the trades (how to set up GTC, etc) during the free
month
- so I am happy to learn the logistics of 'operating' the platform before i start

the free month - is this wise? I could start virtual trading just to learn the
logistics before i subscibe to the toolbox
- could i use some of the stocks from the list to 'play around with' until i
understood the platform? I plan to re-read the book and concentrate on the
first half(CC's) and then start virtual trading here in the UK leading up to the 2-
day in Dallas (probably March one). I really like your wit and hope to never
come under your Mighty Sword (uh, pen, which seems to be much sharper
than the sword ;>) Too bad many of the folks who get a tongue-lashing don't
read your prior newsletters- would most likely save them some grief! I have
learned a lot from the client email questions and answers...
Thank you for your dedication... oh, one more thing - a suggestion
- is it possible that you guys could rotate each Tues nite online intro seminar
into the website - I have stayed up til 1am and listened to 3am (my time) to
the live seminar - but pay for it the next day... If you substituted the online
prerecorded version (which is a few months old now) with each week's latest,
then folks who missed the live version can here it sometime during that week
- kinda like the radio archives - but only archiving them a week at a time... if it
is not too much of a technology challengs -
thanks Cheers,
Jake
-29-
Dear Jake;
Thanks for your note. Yep, Aaron did mean for that response to go to another
email, sorry about that.
Regarding your question, we teach order entry in detail in our 2-Day Intensive
Seminar. How to place orders to effectuate desired results with the use of our
techniques.
Since you are not ready to take the Seminar, you might help with the on line
services of your broker. They are usually pretty good with this kind of
information for you are certainly not alone with these questions.
We appreciate your buying our book. When you have some question on the
use of our technique, please call or email;.
Look forward to seeing you at a Seminar soon.
Joseph R. Hooper
Hi Joe,
First I would like to thank you for writing such a FANTASTIC book !!! I carry
it every ware and its getting a little beat up by now.
Now a few quick questions:
I bought BECN @ 20.40 on 11/10

I sold the Dec 20 for 1.40
I bought GG @ 20.40
I sold the Jan 27.50 for 1.20
Neither were called out and I was wondering if you thought the chart positions
were ripe for TSSing ? GG appears to me like two bottoms and one top of a
lower trading range. Your input would be greatly appreciated.
Thanks , Kevin.
P.S. I believe you had a second book called " LEAPS to wealth" , do you have
a release date for this book?
-30-
Dear Kevin;
Thanks for your email and your comments about our book. We are certainly
getting lots of good comments and reports on how the books is helping many,
many to achieve their financial goals.
Regarding BECN, it is ready to TSS according to the chard.
Regrading GG, it is ready to TSS also.
The book you have covers both our conventional covered calls techniques
and our LEAP techniques. Originally there were to be two books but the
publisher, Wiley, decided to put both in one book.
Again, thanks for your comments and let us know when we can help you.
Thanks,
Joseph R. Hooper
Hi Joe,
Thanks again for the excellent on-line tutoring session yesterday. I have
signed up to attend this weekend's 2-day seminar in LA, repeating last
month's experience. As a long-time trader, I am finding that my greatest
issues are straddling two worlds, and not letting go of some of the old thinking
patterns. You have warned of this many times, and in reading your book
recently, those warnings jump off the page at me. You know the feeling when
you are sitting in church and you suddenly feel that the preacher is talking
directly to you and using you as an example, but not in a good way.
So here I am again with my nemesis, GS (Goldman). The stock peaked at

$220 about 10 days ago, and then began to slide back to where it was
yesterday ($approx 208) when I posed my question to you at the end of the
session. I had no call on it, and was sure that I was leaving money on the
table in my biggest position. I was leaning toward a JFC, and you confirmed
my thinking. We discussed the Feb $210 at $3, and the more conservative
Feb $220 at about $.65. We both were leaning to the $210 strike, so at the
end of the show I sold 7 contracts at the $210 for $3. Two hours later, the
Fed announces, the market jumps and GS goes up $4. As I write this, GS is
at $213.40 and the Feb $210 that I sold yesterday at $3 is now at $6.30.
There are two weeks to expiration, and being the novice at this that I am, I am
in nervous mode. We talked about TSS in this scenario, but I wasn't
expecting it so soon or so dramatic. Can you
-31-
help?
Sincerely,
Hugh
Dear Hugh:
Well, good to hear that I will see you this weekend at LA.
Now, as usual, you are just a little too anxious. To show you what I mean, the
GS stock is down today (Feb 1, 2007)..not too long after I received this email
to $209.81. It is down 2.00 and falling. You can TSS if you want, BTC the
present call and sell the same strike out in Jan 08. Then put in a GTC to buy it
back for any buy back cost you have on the original buy back. You will be
safe and you will have the opportunity to reap a large buy back return as the
stock goes down or continues to simmer.
It is even impossible to write on this one for it all over the place on the down
side. Just shows you are just a little too anxious.
Thanks,
Joseph R. Hooper
Hi Joe,
How right you are. Bear with me, please. I am an older dog trying to learn
new tricks. Will see you on Saturday, with my new patient demeanor
(maybe). Thanks again for the prompt response and encouragement.
Hugh
Dear Hugh;
...see you Saturday in LA...
JRH
Dear Joseph;
-32-
I am Selden Jones, I attented you seminar in Los Angeles last month. I have
a stiuation with a covered call position that I wanted to discuss this weekend
but I cannot attend as I will have to pay an additional 295.00. As I am not a
true believer yet I hope to be. One other point about the seminar , I had read
through your book 5 - 6 times before the seminar trying to get up to speed on
both covered calls and leaps as it was stated that the seminar would cover
both and was disappointed to find out at the seminar, not in advance that we
are not being taught leaps only the covered calls. That now it is going to cost
an additional 3000.00. This was not said until the first day of the seminar. I
dont expect special treatment and I always pay my way. I work hard for my
money and try to give people what they expect. I am finished and have
nothing else to say about that. Hopefully you will help me with my first
covered call attempt.
I entered into a position on AVR at 21.00 for a Feb. 20.00. at 1.80. Stock
started to drop and I bought back the call for .35. A 1.45 profit. I then put in a
GTC order to resell the call at 1.05 which at the time seemed possible. The
stock has continued to drop till today when it has rebounde to about 16.75 .
When I had originally checked out the chart it was in the lower 25% of its
cycle and the market had a down day. The problem is there are no leaps in
the option chain. The furthest out they go is Sept 07. Is the situation a TSS for
income or a CPR? Your kind response will be greatly appreciated.
Selden Jones
Dear Selden;
Don't even try that on us. First, we give weeks and weeks notice when we are
changing something. We make a really special effort to respond to those that
attend the seminar with any problems. However, your email is so goofy that I
did not read it all after " ...As I am not a true believer yet I hope to be. One
other point about the seminar ,
I had read through your book 5 - 6 times before the seminar trying to get up to
speed on both covered calls and leaps as it was stated that the seminar
would cover both and was disappointed to find out at the seminar, not in
advance that we are not being taught leaps only the covered calls."
That is just not true. Don't try that with me. We are willing to help you in any
possible but you are not helping with that crap.
Thanks,
Joseph R. Hooper
-33-
Hi Joe
I attended your Dallas 2 day seminar and also purchased the book.
I have learned a lot. Thanks for making this available to us.
I have a leaps question. How do you decide whether to use the 10 cent rule
or the DLB ?
I would also appreciate you list of 200 preferred stocks that you follow and by
placed on your list to be notified when your next Managed Fund opens up.
Thanks again
Bill
Dear Bill;
Thanks for your email and questions.
The .10 rule and the DLB will be covered in the Seminar on LEAPS. You just
attended the Seminar on Conventional covered calls. Forget about leaps until
you have experience with traditional covered calls.
Thanks,
Joseph R. Hooper
Hi, Joe,
Please help with advice re: WLP
Cost basis $75.00. It was "put" to me when the price was about $71.50, and
I erroneously sold a Dec 70 call for $3.20. Becoming aware that it was in
danger of being called out for a loss, I bought the Dec call back for $4.00, and
sold a Jan08 50 Call (after calling to you) for 26.60.
It doesn't come close to dropping enough to buy the call for a profit, and it
doesn't go high enough to sell the trade at a profit.
Earl
-34-
Dear Earl;
What do we say about "puts"
Thanks,
Joseph R. Hooper
I agree--it happened before I ever heard of CSE.
Earl
Dear Earl;
Ok, then you are redeemed.
Tell me exactly what you have at the moment.
Thanks,
Joseph R. Hooper
Hello Arron,
I have listened in on the two hour seminar on Tuesday, and purchased and
read your book. I am also taking advantage of the one free month offer to
use the tool box on your website. I am also going to attend the 2 day seminar
(Feb, Dallas) after the free month runs out.
I have sold perhaps a dozen covered calls, and most are quite successful.
HOWEVER:
as your toolbox suggested this week, I bought NTRI stock for about $61, and
sold the $60 FEB strike for $3.90: 6.4% uncalled and 4.7% called. The stock
is now trading around $44... OUCH! I know the call would just expire
worthless, but I bought it back for .05 cents today thinking I could actively "do
something" quickly. But according to your rules, the next step to take would
be a TSS for income adhering to the "sell high" rule. So, is that the best thing
to do at this point (i.e. wait for the stock to go up)? OR do you have another
suggestion since I have no call obligation at this time (i.e. maybe sell another
FEB call with a lower strike.... this would increase my net premium, but risk
being called out for substantial loss?)
-35-
Any help would be much appreciated.
Thanks,
Carlos
Dear Carlos;
Thanks for your email. You are doing well and I can tell from your question on
NTRI that you are following the rules.
Since we need to wait for NTRI to come off support and make some kind of
formation before selling constructing another TSS, we can just do a SJFC at
this time. There are two possible. The most conservative is the Feb. 07 50 @
.65 per share. This is free money that compensates you while you wait for a
TSS formation. The less conservative is the Feb 07 45 @ 2.00. I would
probably do this one and it the stock went up to 45 I would just TSS and
come out great.
That is the answer to your question "(i.e. maybe sell another FEB call with a
lower strike.... this would increase my net premium, but risk being called out
for substantial loss?) ". When you do a JFC or SJFC it the stock goes up to
the strike price, it is time to do a TSS so you will not be called out and you will
always come out better.
Hope this helps, if not, let's try again.
Thanks,
Joseph R. Hooper
Hi Joe,
Today was my first online coaching session. I was really impressed. I had to
leave at 10:45, but not before getting some good data on IIG and AVR. I
haven't been able to find the archive to finish the session and would
appreciate your guidance.
I just completed the summary for January and I made 6.2% for the month and
3.5% monthly average since October, so I am excited about my improving
performance.
-36-
Thanks for your help.
Jim
Dear Jim;
Thanks for your email. Well, that is just great that you got your information so
quickly before you had to leave. The session went on for about 2 hours 15
min. It takes a long time to download the recording and get it on a site. That is
done and you will get an email today giving instructions where to find it etc.
Your returns are just great!! Glad to have you as a client. Please let us know
when we can help you.
Thanks,
Joseph R. Hooper
Thanks Aaron. I joined you and today and two weeks ago. I noted that you
had many more in the group today; I was the 77th caller.
This is a very productive use of time and very informative. I very much
appreciate your efforts.
Linda
Dear David,
Thank you for attending our Webinar. We hope you enjoyed our discussion.
Thanks,
Aaron
Aaron,
Yes I did - I have just excersised 14,000 JPM Stock options issued to me over
the past several years by my employer in order to begin receiving dividend
income on these shares in addition to the coninued run up in JPM share
-37-
price. Selling covered calls on these shares is an addtional source of income
that I am seroiusly looking into and
your seminar helped and I will be ordering your book.
I was the one that asked at the beginning of the call about on line brokers and
the info you provided on this was beneficial as well.
Thanks,
David
Joseph;
I have 500 shares of WLP and am short 5 Jan08 50Calls. Cost basis $75 for
the stock, and the call was sold for $26.60. Also lost $.80 on the buyback of
the Dec 70 call.
Thanks.
Earl
Dear Earl;
Thanks for getting back. Ok, this is simple now but I want you to remember
that you are in this mess because you played with a PUT and you just expose
yourself to risk when you do that. Everyone always thinks they are smarter
than they are and this is a good example. I understand that you did not know
of CSE at the time you entered this trade but this is a good example of what
we talk about all the time.
Our clients were in and out of this same position in one day with a return on
average over 4.5% with annualized returns in excess of 1,500%.
Now, this is all you need to do. First this stock has a consistent horizontal
pattern. Look at a simple straight line chart. You will see it. The stock has
cycled three times this month already between $78.94 and 76.02 allowing for
some excellent buy backs of TSS calls. See chart below:
-38-
Now, the stock is at the top of the chart right at resistance at $78.38. It will
come down. At the present price you have a buy back cost of the Jan 08 50 of
only $4.60. That is nothing. Just let the stock cycle down when it reaches
support or makes a "V" but it back at worse you will only have to do it twice
and probably just once to get the call bought back at cost. Then when the
stock goes back to resistance, sell it for a profit.
The lesson learned here...don't try to be a cool investor trying to beat the
market and appear smart...your not.
Thanks and let us know when we can help you.
Joseph R. Hooper
Joseph;
I purchased your book last year (the one in the three ring binder).
I have paper traded for the past four months using your techniques and have
averaged 5% per month.
Does the new book have new/additional information that would make it
worthwhile for me to purchase?
John
Dear John;
Need to know how many pages are in your book.
-39-
Thanks,
Joseph R. Hooper
Dear Joseph;
115 honored that you responded personally.
I'm hoping to attend one of your seminars this spring. My wife and I are
selling our business and I am trying to determine if I should roll the money
into your system. Its going to be about $500,000.
John
Dear John;
Thanks for getting back. The present three ring binder has 222 pages.
That is the only three ring binder we now have and it is our Seminar Manual.
So, the book presently has all the information that is in the Seminar Manual,
so you are really out of date and it might make sense buying the book.
You will have a great "income producing" asset with the $500,000. You
should be able to produce around $20,000 a month or so.
Let us know if we can help you.
Thanks,
Joseph R. Hooper
Hi Joe,
I attended a the 2-Day intensive in Dallas in Dec. 2006. The Cow Report says
that some new techniques will be introduced in 2007. My question is this:
Will any of these new new techniques be presented this weekend (Feb 3/4) in
Atlanta ? I ask because I had registered for this Atlanta seminar a while back
under the assumption there would be some new techniques presented (i.e.
techniques which were not presented in Dec 2006). I called your office a
-40-
couple weeks ago and one of the gals said that they would be mailing out the
new techniques soon. I have not received anything in the mail yet and the
seminar is less than a week away.
If no new techniques will be presented this weekend, can you provide an

ETA? I would prefer to postpone my attendance until later in the year when
the new techniques are introduced.
P.S -- Since I began with covered calls in November 2006 I've already paid
for the class with my first few positions. You and Aaron are doing a great job!
Thanks a bunch,
Eric
Dear Eric;
Thanks for your note. That is great that your have already earned the cost of
the Seminar!! We find that to be the case over and over.
Also, many folks leave the Seminar and retire the next day.
We will be adding some new techniques at the Dallas Seminar which is

always held the last weekend of the February. They will then be taught in
each Seminar. Another thought, you are lucky to be "grandfathered" in on the
cost of the Seminar...as time goes by and we add new techniques the prices
of the Seminar increase to new clients...existing clients are always
grandfathered in at the old price.
Thanks for your note and congrats on how well you are doing.
Joseph R. Hooper
Joseph;
Really enjoyed the two day seminar in Dallas this weekend. Please put my
name on the list to be notified when you are ready to take subscriptions to the
new managed fund that you mentioned is being created.
Thanks,
Ted
-41-
Dear Ted;
Hey, we really appreciate your attending the Seminar this weekend.
You are on the list.
See you at another Seminar soon.
Thanks,
Joseph R. Hooper
Dear Joseph;
Is a 2-day intensive session a prerequisite for attending the 1-day LEAPS

course?
Thanks,
Coy
Dear Coy;
Yes, it is.
Thanks,
Joseph R. Hooper
Mr. Hooper,
First, thanks to you and Aaron for providing an informative and profitable
seminar. I learned enough to pay for the seminar this month. It was also a
pleasure to meet you personally and shake your hand.
I'm struggling with CPR and a little frustrated I'm having so much trouble with
how to execute this. I have a position that is an immadiate candidate and I
would appreciate your opinion and advice.
The position is CWTR. First, please do not ask me why I bought this in the
first place. I have no idea where my head was, although as I recall it was
stuffy and difficult to breathe.
-42-
This is what I've constructed:
CWTR purchased at 20.31

current 18.36
net premium .90
P/L analysis 15.00
15.00 ask 3.60, 17.50 bid 1.25, ask 1.30, 20.00 bid .15
It appears that 17.50--20.00 is profitable. Do you agree?
Thanks,
William
Dear William;
Thanks so much for your email. We really appreciate your comments about
the Seminar. It was great having you there.
I am sending this email to Aaron and he will get back to help you on this CPR.
Again, thanks for attending our Seminar. Many, many that attend pay for the
Seminar from just the first one they attend. Come back many times.
Thanks,
Joseph R. Hooper
Joseph ... this is Dick Haywood
Got a question .... but first some background .
I've traded futures for some five years or more, day trading, and also have
equity experience. I've worked with several of the platforms, from eSignal and
Trade Station thru Metastock ... and entry programs including J trader. But,
I've absolutely no options experience.
My background includes using IB ... and while some might find them
acceptable I'm not included in the group as their service, hands on or
otherwise, is unacceptable, at least in the futures business.
-43-
To the question ... Brokers Express charges are nothing short of robbery
compared to IB, especially for an entry level options trader in the one and two
contract arena . Trade Station is significantly less expensive, likewise Trade
King .. but getting approved for level three options trading is impossible, and
absent level three defensive debit spreads (CPR and TSS) aren't in the cards
... I'm aware Brokers Express will accommodate me at level three, but it's a
very wide stretch trying to make it work financially!! I feel like I'm between a
rock and a hard place ..........
Any thoughts, solutions or wisdom worthy of passing along??
Dick
Dear Dick;
Thanks for your email. Have not heard from you in a little while, good to hear
from you.
Check out thinkorswim. They have good service, cheap commissions.
BrokersXpess is great if you are doing 500 shares (5) contracts etc or more.
Let me know what you think of thinkorswim.
Thanks,
Joseph R. Hooper
Joseph ...
Had a brief conversation with Scott Sheridan, one of the initial principals of
ThinkorSwim ...
Scott has extended a commission package that makes it extremely attractive,

in fact, the numbers are far more generous than I feel deserved by this cretin!
I have every reason to believe that the influence of CSE, and you in
particular, greatly impacted Scott's favorable decision. If the conclusion
extended me by Scott is any way representative of the treatment other entry
level CSE'er can expect
I'd suggest you might put them on your "favored" list ... So ....
Thank you for your attention to my plight!
-44-
Dick Haywood
Joseph, you have my permission to use this as you see fit ... RH
Hi Joe,
Thanks again for your training and book. Great stuff! I have two quick
questions for you:
1) The first question is to see if I'm reading the charts right. I bought NVDA
around $35 and sold the Jan $35 call. It expired, but the stock has been
dropping. Now I'm trying to figure out my TSS entry point. You'll notice that
in mid-January the trend changed to a short term downtrend. I started
watching this short-term downward channel right after expiration. On January
24 it peaked, but since it didn't hit over the 75% mark I didn't sell, then it
dropped again. Did I miss something or do I just need to be patient for the
next up cycle?
2) Question two is simply, what is the ultimate exit for a TSS? Am I looking
for the right overall returns on the position, relative to how long I have held it?
What should I be looking for to close the position?
Thanks again for your great work.
Bill
Dear Bill;
Thanks for your email and we appreciate you as a client.
However, what in the world are you doing?
Your questions:
Question #1: " ...bought NVDA around $35 and sold the Jan $35 call. It
expired, but the stock has been dropping. Now I'm trying to figure out my
TSS entry point. "
Answer: The entry point for the TSS it at the top of the (in this case) down
trending cycle.
-45-
Question #2: "You'll notice that in mid-January the trend changed to a short
term downtrend. I started watching this short-term downward channel right
after expiration. On January 24 it peaked, but since it didn't hit over the 75%
mark I didn't sell, then it dropped again. Did I miss something or do I just need
to be patient for the next up cycle?"
Answer: First, learn what you are supposed to do. Do you have nothing to do
all day but think and figure and wonder about this stuff? You sell the call at
the top of the cycle and buy it back at the bottom. That is it. Simple
Question #3: "Question two is simply, what is the ultimate exit for a TSS? Am
I looking for the right overall returns on the position, relative to how long I
have held it? What should I be looking for to close the position?
Answer: "Question two is simply, what is the ultimate exit for a TSS?" The
ultimate exit is when the stock is at support and is making a "V" on the chart
indicating the bias is for the stock to go up where you will TSS again. You
keep doing this until the stock sales or you just want it for income forever.
Bill...you are a sum of the digit person. You will never have returns because
you don't know what investing is. You have so many questions in your head
that are totally useless to anything. Just follow the rules and you will be
successful. Follow your head and you will be a loser.
Thanks,
Joseph R. Hooper
Joseph,
-46-
As you may know, NTRI continued to fall after our talk on Tuesday morning.
Presently in NTRI @ 63.40
Bought Feb 55 Calls @ 5.1
Couldn't get in the 60 Calls prior to close of market on Monday.
What is my short term or long term strategy with NTRI @ 44.05 ????
Ken Kraska
My other trades are fine and I am sure this one is repairable long term.
Dear Ken;
Well, think you mean that you sold the Feb 55 @ 5.10. When the market
opens this morning, if this were mine, I would BTC the Feb 55 @ .20 or less.
that gives me a return of $4.90 or 8.37% on the buy back. I would then do a
SJFC on the Feb 50 @ .65. That is free money I get for waiting for the stock
to form a new formation so I can TSS again.
If this stocks keeps going down, you will become wealthy.
Thanks,
Joseph R. Hooper
Joe,
First, let me thank you for a great 2 day intensive seminar this past weekend.
I thought the facilities were very good. It was my second time in the class.
I am on my second month of writing covered calls, and I'm doing great!
I would like to join Clarenda's Lady Cow Support Group. Could you give me
her contact information?
Thanks for everything,
-47-
Mary
Dear Mary;
Hey, thanks for your note. That is great that you are doing so good.
Just following the rules, hey?
I will forward this email to Clarenda and she will contact you.
Thanks,
Joseph R. Hooper
Hi Tiffany,
Have you recovered from yet another seminar??? I am definitely running to

catch up.
Based on our previous discussion, I wanted to touch base and see if you
were able to sign me up for an online course? I would be interested in
attending in April or May...and you can certainly let me know which month
tends to be lower in online attendance.
Also, I wanted to see if you could add my name to the list that is being
developed for a CSE women's support group?
Many thanks for your help!
Jenifer
Dear Jenifer;
Thanks for your note, I will move this over to Tiffany's mail box and she will
take care of it.
Thanks,
Joseph R. Hooper
Joseph;
-48-
What if you do not have any stocks, do you teach what stocks to buy?
Maggi
Dear Maggi;
Thanks for your note. Yes, we teach you where to find them based on our
criteria.
Thanks,
Joseph R. Hooper
Dear Joe,
I've been using your covered call techniques since my wife and I attended
your Boston seminar last June. So far so good. I'm averaging about 4%
monthly on all my positions. Who wouldn't be happy with that?
I've started entering into leaps positions over the last month and I have a
quick question.
Is it ok to sell calls further out than the one month between the current month
and the exercise date. For example, selling July 07 versus March 07. The
delta ratios work and I'm following all the other rules. Is this ok?
Thanks,
Kendra
Dear Kendra;
Thanks for your email. You are doing great!! Please keep us up to date on
how you are doing as time goes by.
It is ok to go out the next month if you need it for return (you need it to get the
min. 10% return). Don't do it just to get a higher return than you would get by
using the proper one (leaving the extra month between the LEAP and the call
sold. This is important for that month in instrumental in the management of a
LEAP position if you need to do an SCR to take profit on the LEAP when you
have an unruly call.
-49-
Thanks,
Joseph R. Hooper
Dear Joe,
Thanks for the help.
I'll keep you posted on how we're doing.
Best Regards,
Kendra
Joe,
Good seminar this morning. Thanks.
We didn't get to my BJS (bought at 32.35 with .40 income so

far). It seemed to hit resistance this morning, is it time to
TSS, or wait, or JFC (yuch, only .10)?
Thanks,
Jon
Dear Jon;
Thanks for attending the Coaching Session today.
You have an easy one here. If his were mine, I would sell the jan 08
20 @ 9.10 and BTC at 7.50 for the 5% return.
Hope this helps, if not, let's try again. Need to do this today.
Thanks,
Joseph R. Hooper
-50-
Joe,
I purchased 100 shares of Checkfree (CKFR) on 1-22-07 for $40.458 per

share. I then sold a call for $2.25. As the price dropped I bought back the
call for $1.90. Since then the option has not been over $1.90. Friday 1/26-07
I TSS I sold a 1/08 $25.00 Call for 15.70.
The stock price at the time was $38.91. I placed a GTC buy on the 1/08 $25
call for 13.70 (5% profit of 40.458 per share $2.02- $15.70). In your opinion
did I TSS to early. The stock seems to be in a sidways or slightly downward
cycle. This is my first time investing since Boston seminar a little wet behind
the ears.
Your help is appreciated,
Kevin
Dear Kevin;
Thanks for your email on CKFR. Your purchase of the stock and sale of the
call were done properly the first time, witness the successful buy back. The
next time you sold the call, you did it at the support line which was the wrong
place on the chart. You did good on the selection of the 08 strike, it was
perfect, just at the wrong point on the chart.
The stock is going sideways to down at the moment so you should have no
problem with a buy back, just a little slower because you sold it at the wrong
point on the chart.
Now, if it goes up instead of down, we can do an SCR technique and solve

the problem when the stock reaches the height of the present price cycle. No
problem.
Long and sort of it is that you have no problem. Just always be sure to TSS at
the top of the price cycle when the stock is going down, up or sideways.
Keep me posted.
Thanks,
Joseph R. Hooper
Joe,
-51-
with the number of accounts and corresponding portfolios that I'm managing,
I'm taking the opportunity to introduce my new trading partner Jake.
As you know Stephanie occasionally does better than me and is looking after
her own trades and doesn't always keep her Dad posted on the "good" trades
until the main opportunity has passed.
Attached is a photo of my partner. He has been outfitted with the Crowley

trading uniform, and is familiar with your website as can be seen on his
monitor 8-)
Jeanice & I will see you Thursday evening. I had suggested a name for their
ladies group - "The Texas Call Girls", but for some reason that didn't seem to
click with them (don't know why!), so they decided to call themselves "The
Texas Cow Girls". Geez, women can sure be picky!
Cheers,
Fred
Dear Fred;
Well, good looking partner there. Definitely will probably follow the rules for I
bet he does not have all the "old" street stuff in his head!!
Thanks for the photo.
Well, I just don't understand why they did not like the name?
See you later and thanks.
Joseph R. Hooper
-52-
Joe,
In addition to the position below on AMD (sent last Friday), I have a position
in RGR that may need to be rescued too. I have 500 shares of RGR and did
a TSS as follows:
Current stock price: $10.80

My cost : $9.25
TSS : 10/3, Stock was $8.05 -- STO APR 07, 5.00 at $3.00 and have had a
BTC at $2.40 since then.
Now the BTC is @ $6.00 and the JUN 07 has no 5.00 call and the 7.50 call is
$3.50.
If I can get some help with one of these, I think I can do these in the future
when necessary.
Thanks
-53-
Rick
I am doing well (6.5%/month) and having fun with the CSE system, but now, I
have a position in AMD with 400 shares and have looked at whether a CPR
on this is something I need to do. I have not done any CPR techniques yet so
thought I would "follow the rules" and get your input first. Details are:
Current stock price: $16.20

My cost: $23.10
Purchase Date: 10/10/2006
Premiums: (2) $2.35
I have no open calls on this.
This looks like a good candidate for CPR on the charts and trend, but I need
your experience and expertise to confirm and "walk me thru it" if you would.
Thanks for your help.
Rick
Dear Rick;
Thanks for your note.
Regarding AMD, it is a perfect TSS at this time. If mine, I would STO the Jan
08 12.50 @ 5.00 and buy back for 3.90. That would give me another 5%. The
stock is down trending and you will get it. You are doing great on this stock
with the buy back you will have earned a total return to date of $3.55 or
18.16%. Not bad.
Regarding RGR, the stock has peeked out and is starting a down trend.
It is at the height of the price cycle and starting to cycle down.
You will get closer to a buy back soon. Just a little patience on this one. Also
soon they will be adding a new option month and we can do an SCR if
needed. Patience on this one.
Joseph R. Hooper
Joseph;
-54-
I really enjoyed your weekend presentation! This hotel amphitheatre is ideal. I
noticed on one stock graph display, Aaron had volume, MACD and DMI
displayed. You might, jokingly, threaten Aaron with Occam's Razor. If he is
unfamiliar with this - William of Occam was a Franciscan scholar in the late
13th century England who developed a principle that " do not come up with an
unnecessarily complicated explanation when a simple one will do".
Keep up the good work.
Sincerely,
Bob
Dear Robert;
Listen, it was just great seeing you this weekend at the Dallas 2-Day
Intensive.
We really appreciate you as a client.
Yep, that was just a mistake on the chart. You note it was only on one and
was in the background.
I will give Aaron this email and he will get a kick out of it.
Thanks so much,
Joseph R. Hooper
Joe,
As you & Aaron recommended at Saturday's seminar I closed out the HMC
TSS for 1.2% in 5 days the spreads narrowed exactly as Aaron predicted.
Just like an extra dividend check on a stock I plan to hold.
Saturday the sound for the on-line participants was great however on Sunday
when online participants tried to ask questions we couldn't understand due to
some kind of feed back. When we tried to ask questions it was garbled and
didn't work well on our end. I look forward to the flow sheet on covered calls.
Rodney
-55-
Dear Rodney;
Thanks for your note. We really appreciate your attending the Dallas Seminar
on line. The problems encountered have been resolved. The equipment at the
facility was theirs and the bugs have now been worked out.
We will get the flow chart to you.
That is great on HMC, just goes to show the value of the TSS for income!!
Joseph R. Hooper
Good Morning!
Hope all is well in Texas! I was wondering if you could give me an example
on how to do a TSS? What the formula would be and also what is the
difference between a TSS for income and a TSS for defense? An examle
would be appreciated>
Thank You
Debra
Dear Debra;
Thanks for your note. This was covered really well at the Boston Seminar you
attended. It is well laid out in the Seminar Manual.
Please check that out. Also, I note that you will be at the Seminar in February
and we will go over it in detail with you at that time even take any positions
you might have.
Thanks,
Joseph R. Hooper
Joe -- Thanks for the session in Dallas on January 27 & 28th. Could you
please provide your list of the 200+ stocks.
-56-
Thanks
Lorne
Dear Lorne;
I will send the list in a few moments. It comes from a different server so if you
don't receive it, please let me know.
Thanks for attending the Dallas 2-Day Intensive. Remember to come back
often for we are always making improvements in our techniques and we put
out that information at the Seminars.
Thanks,
Joseph R. Hooper
Hello Joseph,
Thanks for the report. I have read your book and need to read few more time.
It is very interesting. I have subcribe to your service and currently testing few
covered calls for feb.
I have an account with Optionxpress but you recommend brokerexpress

which is owned by optionsxpress. Do you think I need to open account with
brokerexpress or current account with optionsexpress will do the job.
I intend to attend your seminar in April till that time I would have some
experience writing calls .
I wait to hear from you.
Best regards.
Lalit
Dear Lalit;
Thanks for your email. We appreciate you buying our book.
-57-
We certainly look forward to seeing you at one of the Seminars.
Regarding the brokers, it is just fine to stay at OptionsXpress.
Thanks and let us know when you have a comment or question.
Thanks,
Joseph R. Hooper
Joseph
I am beginning to study LEAPS using the Selections emails.

I am having a bit of difficulty, undoubtedly because I am confused [again],
following the logic of the rules because the selections emails about STC the
short call (eg the 0.10 rule) provide information in the short call price for the
buyback but not the change in the price of the LEAP which triggers the 0.10
rule.
Am I missing something or might it be helpful to provde the LEAP price that

triggers the various actions? I know it would be a bit more work but it might be
good teaching.
Thanks
Steve
Dear Steve;
Well, I can see where it might be a little confusing. Just remember that you
BTC, not STC the call sold against the LEAP and you do that when the LEAP
at bid is .10 more than what you paid for it at ask.
We will consider adding what we paid for the LEAP but it is pretty understood
what we are doing and you can always go back and look at the first email
where we establish the position. We try to get the email out quickly and the
more we add to the page the longer it takes.
Thanks for your recommendation.
Joseph R. Hooper
-58-
Dear Joe,
I enjoyed the Chicago Seminar last week. I would appreciate obtaining a list
of your stocks which you usually trade your CC and LEAPS. I also enjoy
reading the COW report. I look forward to the LEAPS seminar in Feb on the
Web. Thanks much
Chet
Dear Chet;
I have just sent the list to you from another server. If you don't receive it,
please let me know.
I am so glad that you enjoyed the Chicago Seminar. Mark is just great!!
Please let us know anytime we can help you.
Thanks,
Joseph R. Hooper
Hell
My name is Bill Biskup and I am "grandfathered" for the LEAPS seminar. I've
been attending the 2 day intensive in Chicago since September. I would like
to sign-up for the Feb 17th LEAPS and attend from my computer at home. Is
this possible and is there a connect charge?
Bill
Dear Bill;
Thanks for your note. It sure is possible and I will forward this email to
Jennifer to set things up.
Thanks,
Joseph R. Hooper
-59-
Dear Joseph,
Have now signed up for the March two-day and am very much looking
forward to it and to meeting both you and Aaron.
On the good side, I've netted $17,490 on 5 closed positions

with an average hold time of 12.6 days and an average return of 3.2% since
January 10th. Currently have 4 open TSS positions and 2 near month CC
positions.
On the less good side, I STO 25 Johnson & Johnson JAN08 $55 for $13.70.
Clearly I picked exactly the wrong time to TSS and wonder whether I should
get out tomorrow at break even or ride the cycle out and wait for it to turn and
start cycling down. Thoughts? (I wasn't trying to break the rules...I think my
ruler must have slipped when I analyzed the chart... the dog ate my
homework, etc.,etc.)
Thanks and Best Regards,
Robert
Dear Robert;
Well, sounds as if your are doing great. Just shows when you follow the rules
good things happen.
You don't have a problem here. You can buy back the Jan 08 55 for a very
small profit when the market opens. At this moment (close of business,
January 29th) the BTC price is $13.20. You sold the call for $13.70 so you
have a gain of .50 on the buy back. Now, what is interesting the stock is
coming off support and heading up. So, you can buy it back for a gain and sell
again at the top of the cycle.
It is just real hard to mess up bad when you are doing covered calls.
Thanks,
Joseph R. Hooper
Hi Aaron ,
-60-
thanks for the confirmation.
I have a problem tuning in as I have to work tues eves , are there archives to
go to for the 2 hour classses ?
I'm studying the great book you guys have produced.
Thanks,
Dave
Dear David;
Thanks for your note. We appreciate your comments. The 2-Hour Introductory
Seminar sessions each Tuesday evening are not archived.
However, you can find the exact same presentation on our Website,
www.compoundstockearnings.com.
Thanks,
Joseph R. Hooper
Hello,
I have a couple positions this month that I am wondering if I can close them
out on the Delta Effect. If I buy back the calls and sell the stock, I will end up
with a return of 3 to 4% on the positions that I have held for 8 days. Is there a
target % I should shoot for before closing out on the Delta Effect?
Thanks,
Scott
Dear Scott;
Don't know if they are Feb calls but if they are, do them now. I would get out
of anything on the delta with a 3% to 4% return if it had more than two weeks
left in the month.
Thanks,
-61-
Joseph R. Hooper
Joe,
The TSS wants to be sold at the top of the current cycle and making a turn
over the top. The SSR wants to be applied when I have a TSS and the Stock
price is rising and I have a profit in the stock but an overall loss. On CKFR do
I apply SSR when it breaks through current cycle and starts upwards of my
purchase price. I am confused.
Thanks,
Kevin
Dear Kevin;
Well, you would assess the position, you need a profit in the stock to do an
SSR. You can do it anytime you have a profit in the stock but an unruly call
not allowing a buy back and the sell of the stock because of high buy back
cost that prevents an over all profit on the position closing out. Has nothing to
do with the chart.
Thanks,
Joseph R. Hooper
Joseph:
Trade #3 today (1-29-07) is a $25 leap @ 4.60 and a $27.50 Call @ 2.10.
How do you get a return of 84%? Using the standard equations, uncalled
would be 2.10/4.60 = 46%± and called return would be 27.50 - 25 -4.60 +2.10
=0
Thanks,
Jay
Dear Jay;
Thanks for your note.
-62-
Your calculation is based on simple interest. The assumption is that you only
do one trade a year. You simply divide the return by your cost.
However, when doing covered calls/LEAPS you do multiply transactions a

month. So, we use the standard computation for compound interest.
That is what was used on the particular trade you have reference to.
The assumption on compounding is that you reinvest the premium received at

the same rate you received on the original position.
So, the computation would be $4.60 - $2.10 = $2.50. Then 2.10/2.50 = 84%.
Thanks,
Joseph R. Hooper
Hi, Joe,
I last spoke with you during the January 2-day intensive seminar held in Los
Angeles of this year. Could you please send me the list of recommended
stocks we discussed? Please advise.
Thank you so much.
Sincerely,
Chris
Dear Chris;
Just sent it to you. If you don't receive it, please let me know.
Thanks,
Joseph R. Hooper
Hi Joseph.
-63-
I'm not getting the Cow Reports, but I am getting all of the trades you do.
Please send me the latest Cow Report. I use it not only for my own
knowledge, but it helps me teach this to my teenagers.
Thanks,
Jeff
Dear Jeff;
Just sent it to you, if you don't receive it, please let me know.
Thanks,
Joseph R. Hooper
Hi Joseph,
Just bought your book last Thursday, I can't seem to put it down! Fantastic
read.
I have a couple of simple query regarding some terminology in the book, hope
this is the right place to be asking this question, if not please redirect by
queries.
What is meant by ;
"..near month + 1 expiration.." - Page 106
"..second to last expiration.." - Page 78
Thank.
Siew - Malaysia
Dear Siew;
Thanks for your email and questions. First, thank you for buying our book. We
certainly appreciate your comments. When you have any question, please
just email or call.
-64-
Regarding your question on "..near month + 1 expiration", this relates to a
CPR transaction it means that you look at the "present" call first if that does
not work you look at the next month out.
Regarding your question on "..second to last expiration" this relates to the

TSS technique...The second to last expiration means the call (be it a regular
call or a LEAP) before the last one listed on the call chart. For instance, the
call options available on the stock CAT are presently Feb 07, Mar 07, May 07,
Aug 07, Jan 08 and Jan 09. The Jan 08 is the "second" to last expiration. If
there were only three expiration's such as Feb 07, May 07 and Aug 07, then
May 07 would be the "second" to last expiration.
Thanks,
Joseph R. Hooper
Joe,
I think this trade on 1/25 was supposed to be for FORM. WFR never traded at
40.44 that day and AFUBH is a FORM 40 Feb option.
I, like Aaron, didn't think WFR was going anywhere soon. I took FORM
instead. It's doing ok, though.
Jon
Dear Jon;
Well, don't know where you were on Friday, lots of people got out on the delta
as we did. It was discussed over and over at the Dallas
Seminar.
Thanks,
Joseph R. Hooper
Hey that was an outstanding conference
-65-
It's my second one, did it online. A million thanks! Being a newby, I have a
question. I missed your alert to close the trade on Friday.
Now I'm down to trying to figure out how I should do this. I took the trade a
little ahead of you! I was so fired up after the LA conference I got right to
work!! I entered the trade on 1/6/07 purchased 100 shares of WFR @ 40.90
and immediately then traded 1ITM contract, BTO WFR Feb 07 40 for 3.00. I'm
having a good deal of trouble calculating my percent gain and loss comparing
the stock to the option. I tried to calculate the option est. based on the Delta
and came up with an option price change of 11.19 and a new option price of
14.19.
I also tried to calculate the gain on the stock which was 27.7% Could this be
right? I don't think so. Not being clear on the numbers, I did not get out of the
trade since I know I have locked in a 5% return but I'd love to work through
this in order to make a better decision and possibly trade this again before
exp.
Thank you for your help on this, my first trade!! If you could send along any
calculation tips so I can come up with the same numbers as you I would be
most appreciative. Also, Joe I'd love to be able to work with your 200 favorite
stocks!
Many many thanks for the beautiful work you are doing.
Fondly,
Karen
Dear Karen;
Dear Karen;
You need to buy back the call now and sell the stock.You have a profit of
around +4%. The stock is at the top of the chart and about to roll over. You
don't have anything "locked" in. You need to do it now.
I will answer you other question in a moment, wanted to get this to you now.
Thanks,
Joseph R. Hooper
-66-
Dear Karen;
Ok, now have more time.
You paid $40.10 for the stock and you can sell it right now for 52.21. That
gives you a profit in the stock of 52.21- 40.10 = 12.11.
You sold the call (you indicate you "BTO") for $3.00. You have to buy it back
for 12.50 so your loss on the buy back is 12.50-3.00= 9.50.
Now, you take the profit on the stock of 12.11 less you buy back cost of 9.50
and you have a total profit on the transaction of $2.61. Your return is 40.10-
2.61 = 37.49 then 2.61/37.49 = 6.97% over 5 days for an annualized return of
508.81%.
Thanks,
Joseph R. Hooper
Dear Joe,
I can't thank you enough!! It's done!
Fondly,
Karen
Joseph;
Attending the CSE Seminar for the second time enabled me to really clarify
and understand the various applications for managing covered calls. This was
perfect timing as 4 stocks were uncalled (but still got 6.1% for January). It
was great to meet the many successful CSE traders and learn from them
also. I look forward to the updated version of the Cow Tool Box with charts
and earnings dates displayed.
Please email the list of 200+ stocks you regularly trade.
Thanks,
Carol
-67-
Dear Carol;
Thanks so much for you email. Also, we really appreciate you attending the 2-
Day Intensive Seminar in Dallas. What is neat about attending these
Seminars is that you do, in fact, meet so many others both new and old
clients that have consistent returns in the 4% to 5% range and have for years.
Many will have the same goals you might have, be it income or just
compounding your assets or both and you can learn so much from these
other people.
One neat thing is that we will not only be coming up with some new features
for the toolBox in the weeks to come but also new techniques will be added to
the 2-Day Intensive Seminar. You are lucky that you are "grand mothered" in
on the pricing for these two services for with new features the prices typically
go up.
I am going to send you the list of stocks in a few moments. If you do not
receive it, please let me know.
Thanks,
Joseph R. Hooper
Dear Joe and Aaron.
Just wanted to say thank you to everyone at Compound Stock Earnings for a
great seminar last weekend. It really helped me to see the light and head in
the right direction.
Thanks,
William
Dear William;
Thanks for your comments. We really appreciate that you attended the
Seminar in Dallas. Remember, if you have any questions or comments, just
call or email.
Thanks,
Joseph R. Hooper
-68-
Joseph;
Thank you, again, for the seminar this weekend. You mentioned in the
seminar, that you would send a list of 200 or so stocks that you trade on a
regular basis. Will you please e-mail me the list?
Thank you.
Judy
Dear Judy;
Thanks for your email. We have just sent the list of stocks by another email. If
you don't receive it, please let me know;
Thanks so much for attending the Seminar in Dallas this past weekend.
We appreciate you as a client.
Let us know when you need any help.
Thanks,
Joseph R. Hooper
Joe,
Wanted you to know how much I enjoyed the Chicago seminar last week, and
in particular Mark Dannenberg's presentation.
I have very little experience trading stocks or options, and I am going to virtual
trade on BrokersXpress for a few months to try my hand. I am planning to
attend next months Chicago meeting and will bring along my wife. In time I
think I can do this.
Hope to meet you some day.
Ron
Dear Ron;
-69-
Thanks so much for your email. Yes, Mark is so great. He has been using our
techniques for about seven years with never a loss!! He has so much to offer
we are so lucky to have him on our team.
I do hope to meet you soon in Chicago at the Seminar.
Thanks,
Joseph R. Hooper
Joe,
To do a SSR at the height of the current price cycle. I should have a profit in
the stock correct. I am starting to see what you meen when you said we need
patients when practicing tour technique.
Thanks for your advice,
Kevin
Dear Kevin;
Nope, it just needs to be at the top of the existing cycle and making a turn
over the top just like it has done several times this month already.
Thanks,
Joseph R. Hooper
Joseph;
Please resend the Cow Report for Jan 27th, I had an argument with my
computer and lost the attachment.
Gene
Dear Gene;
Just sent it to you. Got to get control of your temper. That is just a little
computer.
-70-
Thanks,
Joseph R. Hooper
Joe,
Can you please send me your list of most used stocks that you mentioned at
2 Day and in Cow reports?
Also I would be interested in joining the ladies support group that is forming.
Can you pass my name along to Clarenda if that is possible? I live in Dallas,
but Plano/ McKinney is just up 75 for me.
Pam
Dear Pam;
Thanks for your note. I have sent the list to you by another email.
If you do not receive it, please let me know.
I am forwarding your email to Clarenda.
Thanks,
Joseph R. Hooper
Hi Joe,
This is a photo of Jeff and Danny that I took while we were enjoying some
Sunday morning mimosa while watching the CSE seminar. Thought you'd like
this!
Carol
Dear Carol;
Boy, you folks in Calif!!!
Thanks for the photo.
-71-
Will be in LA this weekend for the 2-Day Intensive. You and Jeff should come
down and we will buy you dinner.
Joseph R. Hooper
PS....take the train or plane after this photo
Dear Joseph,
The missing pages arrived yesterday. Please extend my appreciation to

Jennifer.
Will I be able to meet you at the 2 day Intensive in Chicago in
February? I hope it will be possible.
Regards,
Scott
Dear Scott;
That is good. Thanks for letting us know.
Joseph R. Hooper
Joe,
Time to TSS GDP or wait awhile? BOT 39.13 made 5.4% last month.
Jim
Dear Jim;
Thanks for your question. I think the chart is a little confusing on this one
today. I would do a SJFC and STO the Feb 07 40 @ 15 if you have enough
shares. By all looks it should be a TSS but the chart has a strange twist at the
moment that indicates it is at a new higher support and heading up. A few
days will tell.
Thanks,
-72-
Joseph R. Hooper
Dear James;
SJFC is a "Stretch Jay's Fast Cash". We have been teaching it now for some
time.
Thanks,
Joseph R. Hooper
Dear Joseph,
While reading the Cow_Report, I saw this exchange between you and Chris,
which I have excerpted, hoping for an explanation.
"One day both they advance, the next day one advances and the other
declines, the following day they both decline. My assumption is that I MUST
stick with the rules by having both indices advance on day one and then on
day 2, when I am ready to sell the covered calls, both indices are "trading"
above their closing value from day 1. Is this assumption correct? Please
advise.
Answer: Yep, stock to the rules by establishing new positions only on down
days (NAS and DOW are both in the red at the same time at any particular
time during the trading day. Chris, look forward to working with you. You have
a good plan on the LEAPS, that is a smart move.
Thanks,
Joseph R. Hooper"
I've tried to find in your book a reference to establishing new
positions with a requirement of NAS and DOW both in the RED prior to entry,
but I can't find it.
Could you please clarify?
Thank you,
-73-
Richard
Dear Richard;
The rule has always been that you establish new positions on down market
days (or time of day). That is defined when the NAS and the DOW are both in
the red.
Thanks,
Joseph R. Hooper
Dear Joseph,
I see in the Cow_Report references to "JFC". I've looked in the book index,
glossary, and skimmed the Leaps section, which I haven't started working
with yet, but I am unable to find information about JFC.
Could you provide information?
Thanks,
Richard
Dear Richard;
Thanks for your note. Good to hear from you.
The "JFC" (Jay's Fast Cash) is a new technique that came out after the book
went to press. So it is not in the book.
We are teaching the new technique at the 2-Day Intensive Seminars now.
Thanks,
Joseph R. Hooper
-74-
Hi Joe,
Please let me know what I can do to make this trade profitable.
Stock: IIG
On 12/22--- BTO 400 shares at 25.33

On 12/22--- STO 4 contracts Jan 07 25 at 2.40
The option expired worthless on Jan 19. The stock has continued to drop and
I have not done anything else yet.
I don't see the stock at the top of the declining price range.
Thank you,
Pam
Dear Pam;
Best to not do anything for a few days. The chart indicates the stock is
approaching the long term support line. It will either turn around now and
head up in which case we will start TSSing at the top of cycles or it will
continue down in which we will start TSSing at the next top of the cycle on the
down side. Best to wait a day or so here.
Thanks,
Joseph R. Hooper
Jennifer:
I did not receive my Cow Report for this past Saturday. I had sent a change
of email address last week and it was acknowledged but the report did not
come in. My correct address for the Cow Report is:
xxxxxxxxxxxxxxxxxxxxxxxxx
Also, can you put me on the list for the new CSE fund.
Thanks.
Ira
-75-
Dear Ira;
Just sent the Cow Report to your new address. If you don't receive it, please
let us know.
Thanks,
Joseph R. Hooper
Joseph,
I have a question regarding the calculation of the LEAPS return on the excel
spreadsheet that you provide versus the LEAPS return that you calculate in
the intraday market report updates.
For example, trade #6 on 1/25/07 is a LEAPS position on MCD which in the

email is calculated at a return of 23.04%.
"TRADE # 6: BTO MCD Jan 09 40 (VMDAH) @ 8.70, STO Sept. 07 47.50

(MCDIW) @ 1.65 for a return of 23.04%."
When I enter the appropriate data into the excel spreadsheet that CSE
provides I get a return of 19%.
It appears that the only way to get a return in this example of 23.04% is to use
the shorter term STO call price twice. Once to reduce the initial investment
cost basis and then a second time as if you are receiving that premium again
for a return on that cost basis.
Thanks for your help!
Paul
Dear Paul;
We use a compound return on the selections since they are done many more
times than once a year. If just once a year we would use a simple return.
The spread sheet uses simple interest.
Thanks,
-76-
Joseph R. Hooper
Hello Joseph,
I am wondering if there is a real time data source for the DJIA and Nasdaq.
When I place a trade for a Covered Call or Secondary call, the data is
approximately 15 minutes old, when watching either Big Charts or Options
Express.
Can you suggest a source of data that is up to the minute?

Or is it OK to follow the delayed data of the 2 main indexes, when placing a
trade?
Thankyou for setting the benchmark in Customer Service.
Chris
Dear Chris;
Thanks for your question. When you hit the "refresh" button on Optionsxpress
the price is the actual price for the moment. That is all you need to do.
Thanks,
Joseph R. Hooper
Hello Jennifer or Tiffany-
I was an "online" attendee of the 2-day intensive this last weekend,
Jan. 27th/28th; and Joeseph mentioned that we'd be getting some things
emailed to us- such as his regular stock trading list, and possibly some more
support materials?
As of yet- I have not received anything and am wondering if we will?
Also- is the LEAPS Seminar available "online" as well?
Thank You in Advance:
Randy
-77-
Dear Randy;
Thanks for your note. Just emailed the stock list to you. If you don't receive it,
please let me know.
Regarding "more support materials" we send by mail or email any new

additions to the Seminar Manual. We have several new techniques coming
down the pike that will be mailed to you when we release them.
Thanks,
Joseph R. Hooper
-78-

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The Cow Report – February 3, 2007

Client of the week ……………………… 3

Joseph Hooper’s weekly editorial ……………………… 5

Update of this week’s activities ……………………… 10

How to get educated ……………………… 16

Upcoming Seminars ……………………… 18

Special offers ……………………… 19

Tune into our weekly radio show ……………………… 21

LEAPS stock of the week ……………………… 22

Covered Call Toolbox ……………………… 23

CLIENT EMAIL SECTION ……………………… 25

We achieve these remarkable returns through a proprietary application of the

Client of the week

To listen to ’s appearance on our radio show - CLICK HERE.

To listen to past radio shows CLICK HERE.

...well, we had a super 2-Day Intensive in Dallas last weekend...

....so many exciting things going on here at CSE...."WANT

...pretty cool....here is what is exciting...if you have been to the 2-Day

....here is what significant about this new feature.....brokerage

....more exciting things...this last Wednesday, January 31...we held the

....in the Wednesday session...there were two questions about stocks

“Covered Calls and LEAPS: A Wealth Option” now published!!!

......biggest surprise of all....attached to each book are two segments of the

Order a copy today from our website:

Tips for using the Toolbox

......for those that subscribe to the Toolbox.....sometimes as as the option

....just use your head and adjust the rates.........

Download our radio show to your iPod

Scholarship Program Continues

........listen...in January 07 we will be starting the new month for the

...at present we have a Seminar each month in Boston, Atlanta, Chicago,

........set them up for life financially................

...........let's move on................

At these online workshops, we provide an introduction to our Covered Call

To register for a free online introductory workshop - CLICK HERE

Subscriptions to Covered Call / LEAPS Selections service is $100.00 per

MANAGED COVERED CALL SELECTIONS - COMPLETED AND OPEN POSITIONS

RETURN ON ENTIRE PORTFOLIO

EOG 26-Apr-06 $75.15 191 7.7% Jan-08 $50.00 $19.70

AVERAGE 188 12.6%

RES 17-Aug-06 25-Oct-06 69 16.7%

Prior to last option month

Closed transactions average

LEAPS Selection Service - Close outs this week

CKFR $30.00 5.6% 9 228%

Covered Call Selection Service - Close outs this week

TOMO 3.1% $15.05

Subscriptions to Covered Call / LEAPS Selections service is $100.00 per

To subscribe to the Covered Calls / LEAPS Selections service just Click

For a country so focused on education, our level of financial literacy is

The world is caught up in a speculative “buy and hope” mentality to secure

Attend a FREE LIVE ONLINE introductory workshop

At these online workshops, we provide an introduction to our Covered Call

To register for a free online introductory workshop - CLICK HERE

The Seminar explains and significantly elaborates on every topic contained in

Investors leave the 2-Day Intensive Seminar with an unprecedented

The 2-Day Intensive Seminar Package is $2,995.

2-Day Intensive Seminars

Upcoming events include:

• Atlanta – February 3 & 4, 2007

To register for a 2-Day Intensive Seminar -

To register for a 2-Day Intensive Seminar -