The Cow Report – February 23, 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 ……………………… 11

How to get educated ……………………… 17

Upcoming Seminars ……………………… 19

Special offers ……………………… 20

Tune into our weekly radio show ……………………… 22

LEAPS stock of the week ……………………… 23

Covered Call Toolbox ……………………… 24

CLIENT EMAIL SECTION ……………………… 26

-2-
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growth of a portfolio or withdrawn on a monthly basis to provide cash income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. Don spent 30 years in the investment
business, and was one of the first licensed options principals in Canada
before becoming a director of a major international brokerage firm. Don has
been with Compound Stock Earnings for four years, however, was so
skeptical of our return claims that he did nothing but watch and paper trade
our selections for three years. He has been actively investing with our
technique for 12 months, and has a return of 59% over that twelve-month
period. Don also comments that the time commitment he is putting into his
trading has reduced by 90% now he is using our Covered Call technique –
taking just 30 mins a day vs. the 10 hours a day he was spending day trading
the markets.

-3-
To listen to Don’s appearance on our radio show - CLICK HERE.

To listen to past radio shows CLICK HERE.

These links may take some time to download.

-4-
Joseph Hooper’s Weekly Editorial

....we had a fantastic LEAPS one day Seminar last Saturday......there were
over 225 people in person and many more on line....it was exciting for
everyone really had an opportunity to visit with so many others in the use of
our traditional covered calls and LEAPS....it was a nice pace...we even had a
break in the morning and one in the afternoon......

......we will be scheduling these one day LEAP Seminars every other month
now...we will be posting the schedule on the website....for the present they
will be held from Dallas for we have the ability to do the on line at the same
time...more folks will be able to attend if they cannot get to Dallas......

....as you read this Cow Report Aaron and I are conducting the regular
scheduled Dallas 2-Day Intensive Seminar....great group of folks
attending...we will give an update in the
Cow Report next week......

......will be introducing the new KADD technique this weekend in Dallas....as

many things..this one is from our client, Ken out in Calif......the new technique
substantially
increases returns associated with close outs on the DELTA....

.......it is so interesting for many of our techniques come as a result from

helping clients with a particular problem..the JFC, SJFC, DJFC... the
DLB...the SSR and CPR..the KADD...it goes on and on.....there are many
others......

....what this means is that once you become a client...we stick with you and
help you become efficient with the application of our covered call/LEAPS
technique....all clients come up
with particular problems...if one client has a problem with an aspect of our
techniques..then others do also...so we come up with a solution...try it out for
a long time...the put it out in the Seminars....we add pages to the Seminar
manual and we send them out....

.....have the every other Wednesday market hour "Coaching" class on

line.....just like a mini personal one-on-one Seminar.....live for all to hear that
subscribe....what an
asset...so many folks attending the sessions each Wednesday session with
such great questions and situations that we solve right there instantly on line
for all to see during market hours.....

-5-
......very interesting....very interesting....you know how much we yell and
scream about the dull performance of the main street brokers....well....so
many are now coming to us and
taking our Seminars..coaching classes...RoundUps...etc. etc.....

.....there may be a change in the wind....just could be these main street guys
will get good.....I know..expecting a lot but just maybe.....

....a lot of this is a result of our book COVERED CALLS AND LEAPS: A
Wealth Option....lots of books going to brokers.....

IMPORTANT: New Scholarship recipient for January....his name is Aaron

Chouravong, age 20 from San Antonio, Texas.....Aaron will be attending the
Seminar in Dallas this weekend to receive his $5,000.00 check........

Aaron Chouravong, 20 years old, is a student at the University of Texas in

San Antonio, majoring in Business Administration with a minor in Marketing
and Economics. While keeping busy at school, he is involved in different
student associations including Delta Sigma Pi, a professional business
fraternity. Besides that, his week consists of work, selling on eBay, piano,
dancing, and church, where he mentors middle and high school students.
Aaron continues to keep a positive attitude and is looking forward to building
his assets using the CSE techniques.

-6-
CONGRATS AARON!!!!!!!!

“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
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

-7-
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
N78

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......

..........if you have an IPOD...go to itunes and go to PODCAST, search for

"unconventional Wisdom" and download the radio shows....

-8-
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................

-9-
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

-10-
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.

-11-
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 $51.07 164 1.3%
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 33.2% Sep-07 $35.00 $11.10
NLS 11-Jan-06 $19.65 296 13.5% Jan-08 $10.00 $3.20
NVT 11-Jul-06 $40.20 115 16.9%
PSUN 7-Feb-06 $24.61 269 10.4% Jan-08 $12.50 $8.40
SNDK 11-Apr-06 $61.38 206 22.2%
URBN 24-Feb-06 $27.73 252 24.0% Jan-08 $17.50 $9.00
WIRE 28-Sep-06 $37.15 36 9.8%

AVERAGE 188 13.5%

AVERAGE PER MONTH 2.2%
AVERAGE PER YEAR 26.6%
* 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.

-12-
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%

-13-
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%
AVERAGE PER MONTH 4.9%
AVERAGE PER YEAR 58.3%

-14-
Here are the Covered Call / LEAPS positions that closed out this week from

LEAPS Selection Service - Close outs this week

Return on Annual
Stock Strike Position Hold Time Return

JBHT $25.00 4.2% 287 5%

ARRS $12.50 4.2% 9 170%
MCD $40.00 5.1% 41 45%
our Covered Call / LEAPS Selections Service.

Covered Call Selections Close Outs

Return on Annual
Stock Price Position Hold Time Return

CCRT $34.87 4.0% 29 50%

CKFR $40.28 4.9% 34 53%
AOB $12.35 5.8% 33 64%
CKFR $40.25 5.9% 29 74%
CCRT $34.87 4.0% 29 50%
GDP $33.89 5.6% 35 58%

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.

-15-
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.

Non 2-Day Intensive Graduates can subscribe to the Covered Call

Toolbox (without the Selections service) for $80 per month. Click Here.

-16-
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

-17-
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 -

-18-
Upcoming Seminars

2-Day Intensive Seminars

Our 2-Day Intensive Seminars are held EACH MONTH in selected locations.

Upcoming events include:

• Dallas – February 24 & 25, 2007

• Los Angeles – March 3 & 4, 2007
• Atlanta – March 3 & 4, 2007
• Boston – March 10 & 11, 2007
• Chicago – March 17 & 18, 2007
• Dallas – March 31 & April 1, 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 and 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 -

-19-
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

-20-
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.

-21-
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.

-22-
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 HILL. 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 HILL
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.

-23-
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:

-24-
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.

-25-
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,

The LEAPS Seminar was great. This is the second seminar for which I have
traveled to Dallas. Having it at an airport hotel really makes it a lot simpler for
those that fly in.

Once you finish your infomercial, you might consider running it in the San
Jose/SanFrancisco area to inform more Californians about the L.A. or Dallas
2-day Intensives.

This past month was pretty good for me. I just tallied my February covered
call returns, with a 4.1% increase across all accounts. I took your advice &
rolled my TXN LEAP to 2009.

I look forward to even better returns using LEAPS.

I have a request ... when I started with CSE last July, PowerOptions was the
screener of choice. Although I've been happy with their product, I look
forward to moving over to the CSE Toolbox when my 1-year subscription
lapses. In the meantime, is it possible that I could get the old SSR/CPR Excel
spreadsheet?

Also, in checking around, I found that the optionsXpress Virtual Trading

platform is available as a free service through the CBOE at:

http://www.cboe.com/VirtualTrading/VirtualTradeFramed.aspx?sectionName=
SEC_TRADING_TOOLS

You might pass this link along in the Cow Report for those that are not
optionsXpress or brokersXpress clients.

Thanks for everything & perhaps I'll see you in L.A. later this Spring.

-26-
Vern

Dear Vern;

Thanks for your note and great that you attended the LEAPS seminar with us
last weekend.

Your returns are great so you are doing things properly.

The SSR/CPR spreadsheets come with the subscription to the tool box. We
cannot put them out otherwise.

Regarding the "virtual trading" aspect of optionsXpress. It is free at

optionsXpress also.

Hope to see you soon possibly at the LA Seminar.

Thanks,

Joseph R. Hooper

Joe,

Your program is the one for me! After exploring other systems, Your system
is the only one that produces consistent results. I've been using your system
since December 2006 and have averaged around 4% per month and
increased my account by approx. 6%. Thanks for making it available.

Please send me your 200+ stocks list.

I have a question for either you or Aaron. During the LEAPS seminar last
weekend, Aaron discussed using trailing stops to maximize his return on
LEAPS closeouts. I understand the theory just not the mechanics of how and
especially WHEN to apply the trailing stop to protect your 5%. It seems that
you would have to wait until the price moves to your 5% closeout price plus
$0.20 before putting on the trailing stop or else risk getting taken out for less
than 5% or even a loss. A little clarification on this technique would be greatly
appreciated.

Thanks,

Chris

-27-
Dear Chris;

Thanks for your email. We have sent the list by another email, if you don't
receive it, please let us know.

That is great on your returns. Yep, it works.

The best thing to do on the trailing stop is just call you broker. He will walk
you through

it and you will have it down.

Hope this helps, if not, let's try again.

Thanks,

Joseph R. Hooper

Joe and Aaron...

you guys did it again. I just wanted to say thanks! I still have to slap myself
when I think of my monthly returns and what all of us CSE graduates are
getting...another great learning experience with a great LEAPS seminar.
And...the new soon to be released toolbox features and tools you are going to
give us.

I have had another great month...7.2%! Two call outs with numerous TSS's
coming up. This is so easy it should be illegal. And LEAPS trading? I can
hardily wait. Saturday cleared up a lot of questions for me. I talked with one
"seasoned" trader who had two losing covered call trades this past month. He
said he had two "stock plays" go against him! Where have we heard that
before? I asked him why...he was not following the rules. Why is it difficult to
just follow the cotton picking rules. Must be a "male" thing. I have made a
resolution however...I personally will not help anyone who will not follow the
rules. I will let you deal with them.

Thanks again for CSE.

Ed

-28-
Dear Ed;

Thanks a lot!!

We really enjoyed seeing you at the LEAPS Seminar on Saturday. Your

comments contributed greatly to the success of the Seminar.

It is funny about rules. If drivers followed the rules of the road think how many
less accidents there would be...pilot error causes the vast majority of plane
accidents....if folks followed the basic rules of society there would be few
prisons......it just goes on and on....there is no real expectation that the
majority of investors will follow the rules to consistent high returns...it is just
not going to happen......the investment losers (stock speculators) will always
be around...but remember...they just keep giving us their money....

Those that do follow the rules succeed in obtaining the consistent high
returns...the others don't and just set around and blame it on everything
except the real cause for their mediocrity....that being themselves...but that is
why the world goes around particularly the investment world.....

We train those that succeed.....they just have to follow the rules...your a prime
example of that..

Thanks for being a client.

Joseph R. Hooper

Hi Joe and Pat,

I just wanted to say thank you so much to you and Pat for your wonderful
hospitality and generosity, and for your willingness to share so much time with
me. The entire weekend was very lovely, and Sunday morning was just an
unexpected blessing. I always miss my church if

I cannot go on Sunday, but the opportunity to share my faith with the two of
you and with your church community will long stay with me. Everyone was as
gracious as I have come to expect from Texans, and especially from Christian
Texans. Being able to share that love no matter where one goes is the extra
special gift that God has given us. You have commented many times, Joe,
on how fortunate you have been through your life with various business
dealings. I can see that your luck was magnified when you found Pat. I
understand that well, because my wife was the single most important event in
my life, and she also brought me into my relationship with God.

-29-
The seminar was terrific, as usual. I have been busy these past few days
with your CC recommendations reconstructing my portfolio. I have only two
positions from last month that need attention--ARXT and PQ. I will try to
connect with you soon on these.

Again, please accept my grateful thanks for a wonderful weekend.

Sincerely,

Hugh

Dear Hugh;

Thanks for your email. It was just great having you in Ft. Worth this past
weekend for the LEAPS Seminar. Needless to say the dinner after and
Church on Sunday were great.
Pat is definitely a guiding force in my life!! She will appreciate your
comments.

We hope to see you in LA in a couple of weeks. Please try to make the

Seminar.

Talk later,

Joseph R. Hooper
Joseph,

Thank you for an excellent LEAPS class in Dalls this past weekend. Since
you split the class into separate courses (which was a very good thing) I have
been waiting and wanting to re-take the LEAPS class after doing Covered
Calls for over a year (as recommended). It is amazing how many people in
Dallas are involved in this and nice to meet some of the locals. I look forward
to increasing my returns and I would like to achieve the 100% return like

Mark did last year with LEAPS.

If I am able to get returns like that, it helps me stay at my current job. With
your system I am to the point that I don't NEED to work. I could retire if it
came to that. But I figure that if I could double my retirement money every
year, it will give me double the monthly income every year I wait to retire.
That's a great incentive to keep working for at least one more year.

-30-
It was also very nice having dinner with you and your wife. She's a lovely
person. Thank you for helping us out of town folks feel welcome and
introducing us to your great steak house.

And on that note, it is a good thing your Covered Calls system is so easy and
has rules to follow. Perhaps the people that make my GPS should have follow
rules like yours so I could make it to dinner on time...at least find the correct
city.

Thanks again,

Ken

Dear Ken;

Thanks so much for your email. It was just great having you and your wife for
dinner after the LEAPS Seminar!!

Your wife is certainly charming. You are a lucky guy for it is obvious that she
over looks your abilities with a GPS!! No big deal, you were not too late and
that is saying something since you were in Dallas instead of Ft. Worth.

Yes, you are right, the LEAPS will significantly increase your assets. A better
plan would be to still concentrate on conventional covered calls for the results
are proved to date.

Take some of the funds earned from conventional calls and start doing
LEAPS. You have a proved ability with CCs.

Again, thanks for attending the LEAPS Seminar and please tell you wife that
we really enjoyed meeting her and hope to see her possibly in LA.

Talk later today,

Joseph R. Hooper

Dear Jennifer,

I have not been able to view any or hear any of the supposedly archived
online coaching seminars due to persistent problems with the recordings. I
have been billed 180 dollars and have not been able to view any of these
coaching seminars. I have followed your instructions and am unable to
access any of the sessions. I believe that I should not be charged until I your

-31-
services are available as thay they were advertised. I would appreciate a
reply to this query.

Sincerely

Chet

Dear Chester;

Thanks for your note.

Since your stuff does not work we will refund your Payments tomorrow
(Tuesday).

We will remove you from all our servers.

Thanks for trying.

Joseph R. Hooper

Dear Jennifer,

I realized what I was doing wrong when retrieving the archived seminar. I find
that it is working as it is supposed to.

Thank you for your help. I would like to continue as a subscriber.

Sincerely yours,

Chester

Chester,

I am sorry but Joe has asked me to refund your money and cancel your
subscription. I have refunded your money through paypal.

Thank you,

Jennifer

Dear Jennifer,

-32-
I am deeply sorry if I offended you or Mr. Hooper by my comments. You must
understand that I had tried to access the archived seminars several times.

I am very busy with a medical practice and try to squeeze in my other

educational activities when I have time. I understand that the first archive
was unavailable but then the second seminar did not properly record. I then
tried to listen to the third seminar and again was unable to access it after
spending over an hour trying to do so. It was then when I wrotethe letter. I
just wanted to get access to the coaching sessions that I had paid for. I finally
was able to gain access when I changed my browser from Mozilla to
Windows Explorer.

I was finally able to access the last seminar without any difficulty as I wrote to
you earlier.

I find your seminars very valuable (I have attended 2 intensive seminars and
have brought two of my children and wife, have attended the LEAP seminar
online and try to read every COW report). I am very grateful for your
company. As I have been going thru the material and starting to trade, I truly
think that learning to do CC and LEAPS gives me a realistic expectation to be
more available to my family and even plan for a retirement that did not seem
possible for many years from now.

I have learned much and plan to continue using your techniques. The online
coaching archives would really facilitate this process. I have told many of my
friends, colleagues, and patients about your book, website and seminars. I
have hoped to one day be one of your successful client testimonials on your
radio show.

I would really like to continue the services that I had subscribed to. Please
reconsider reinstating my subscription. The value of listening to these
coaching sessions even if I am rarely able to attend live is well worth the
investment.

Thank you for your consideration and time.

Sincerely yours,

Chester

Hi Aaron (cc to Joe).

I loved the LEAPS Seminar Saturday (online). There

were several things that I now understand much better. One of the greatest

-33-
tips, to me, was the idea regarding the 20-cent trailing stop. I want to
implement that on one of my positions immediately.

I'm using IB for LEAPS. I tried to set up the trailing stop for a position, but
apparently am doing something wrong. I get an error message telling me, "A
conditional order can only be submitted when the order type is set to limit or
market." I'm wondering if you could tell me what I'm doing wrong.

I'm wanting to STC a USB Jan09 30 LEAPS >= 7.40 with a trailing stop. It
appears USB will continue going higher and I would prefer not to settle for
7.40 if I can get significantly higher.

Here's what I have done: On IB's TWS screen I first clicked on the Bid to
initiate the sale. I changed "Day" to "GTC" and the "Limit" to "Trail" and set
the amount to "0.20" (I suspect this last step is the problem). Then I right
clicked to get >Modify >Condition. I then clicked "Add Condition" to set USB's
Jan09 30 (VBGAF), triggering when the order is >= 7.40.

The order line looks like:

GTC / SELL / 1 / TRAIL / / 0.20

Can you tell me, from what I've described, what I should do differently?

Thanks.

Jonathan

Dear Jonathan;

Thanks for your note and I really am pleased that you got so much out of the
LEAPS Seminar.

I say all the time that if you get just one "idea" out of a Seminar it can more
than pay for it many times over and over.

In the case of the trailing stop you now have a new technique that will
increase your returns for many years to come and pay for the Seminar over
and over and over.

Aaron will be getting back to you on your question.

Thanks for being a client we really appreciate you.

Thanks,

-34-
Joseph R. Hooper

Joe/Aaron...

I attended the Leaps workshop Saturday and loved it and as always I learned
something new.

Next time I will get there earlier to get closer to the front of the room, big
turnout. I have 4 problematic Jan08 leaps that I need to rollout quickly based
on what you said during the workshop. One of the 4 does not offer the same
strike price as the leap I bought, which is a LUV Jan08 17 1/2. What do I roll it
out to? Another dilemma I have is understanding the averaging down
technique. I understand buying more shares of the Jan08's at an additional
cost but I'm not sure what I do next? Do I the rollout to Jan09's, if so I will
have even more money invested. The latter case concerns my AAI Jan08's. If
you can help me with my above concerns and questions I should be able to
apply that knowledge to each of my 4 positions.

Pls help,

thanks

Tom

Dear Tom;

Thanks for your email. Lots of stuff to cover here. Just give me a call at the
office on Friday morning and we can covered these items quickly.

I am really pleased that you benefited from the LEAPS Seminar!! Just a word
here or there can make a tremendous difference in your returns.

Thanks,

Joseph R. Hooper

Dear Joseph,

Here's my situation. I have a number of junk stocks in my portfolio that have

achieved their objectives and I want to sell them to move on with the CSE
strategies. I could just sell them, but since I am in no big hurry, maybe I could

-35-
make a little more money on them. For example, one of my stocks is United
Healthcare (UNH) which had a nice run-up today. I could sell a MAR 07 55.00
Call for around .90. I would not have to manage the position because I don't
care if I get called out.

Am I thinking clearly on this?

I really appreciate your attention to my questions.

ps. Countrywide is behaving nicely today just as you predicted. THANK YOU!

Best regards,

Larry

Dear Larry;

On CFC you are in good shape. However, don"t sell another call until we
speak starting next week. We will be TSSing this stock for income and we
want to sell the call at the top of the existing cycle or any new cycle that might
develop.

Regarding your other stocks, I understand your thinking. I would personally

never sell one for a loss as long as I can generate income. However, there is
nothing wrong with your thinking if that is what you want to do.

Talk next week.

Thanks,

Joseph R. Hooper

Joe,

Just wanted to drop a note to you about the Chicago Seminar this past
weekend. Mark was awesome. It was clear that not only does he make a lot
of money with CSE's system, he has fun doing it. Although I had read and re-
read your book, the seminar answered my questions and corrected my
misunderstandings. I'm looking forward to the market opening tomorrow so
that I can reinvest the positions that were called out on Friday or profitably
manage the couple that weren't..(depending on the market).

Thank you very much for giving me the opportunity to learn your valuable
system.

-36-
John

Dear John;

Thanks for your great email. We really appreciate you attending our Chicago
Seminar and we really appreciate your comments about Mark. He is definitely
a treasure!! He has been using our covered call/LEAPS techniques for many
years and has experienced every kind of thing that can happen in the market
over those years.

Please let us know when we can help you, just call or email.

Thanks,

Joseph R. Hooper

Hi Joe. Haven't met you yet...I went to a seminar in Boston that you were not
at. Hope to meet you soon. Going to attend with my wife in March.

Thought you might not have seen the enclosed article and thought you might
enjoy. My brother can't bring himself to understand what I am trying to do
with Compound Stock but I told him that it seems like a good idea if the funds
are following suit!

Thanks for your efforts!

Tony

Dear Tony;

Thanks for your email. Well, we are going to get to meet in March at the
Boston Seminar for Aaron and I will be conducting the Seminar. Mark had a
previous commitment.

I appreciate the article. These mutual funds have been around a long time.
The problem with their yields is that they use basic street approaches. In
other words, they look at the option as a downside protection for stocks
moving down. They will sell the stock and say the covered call lower their
loss. Nothing wrong with that as far as it goes for in many instances they do
better on average than regular managed funds.

We appreciate your input and we really look forward to meeting you at the

-37-
Boston Seminar.

Thanks,

Joseph R. Hooper

Joe,

The seminar was great, a little overwhelming, but over-all very helpful. Mark
did an excellent job explaining the techniques. It will take me some time to
wrap my head around some techniques, but I will just start with plain covered
call until I figure out what I am really doing. I do have one question, which has
confused me a bit regarding Closing positions on the Delta Effect; on page 58
in the manual you use the example of John purchasing MDR at $20.00 and
sells the June $20.00 call for $1.00. The example go onto explain the
stock rises $2.00 to $22.00. Here is where I am a little confused:

Profit on stock sale = $22.00 - $20.00 = $2.00---------this

part right here, because this profit would not be Johns because he sold the
call for $1.00. How would he make the $2.00 profit, wouldn't that be the same
at buying the stock and just selling? Loss on call buy back = $1.00 - $2.00 =
$-1.00 Plus were do we figure in his $1.00 call premium for selling the call
originally. It looks like this would just be a wash. If you bought the call back
would the strike price go up to $22.00? Net Profit on trans. close = $2.00 -
$1.00 = $1.00 or 5% This here show the $2.00 gain, do we buy the stock back
immediately and sell the stock for a $2.00 profit?

Maybe you could provide me with another example to study, or even explain
this a little different so I understand completely. Thanks for your help!

By the way Mark mentioned that you might possible provide us a list of stock
that you personally have in your portfolio.

Chad

Dear Chad;

Thanks for your email. Yep, Mark is great and such a good teacher!! His
conducts a great Seminar in Chicago, Boston and Atlanta because he knows
what he is talking about..he has been using our techniques for around seven
years.

Regarding "closing on the DELTA"..I am going to forward this email to Mark

for him to answer since he will probably see you before I will. You have a

-38-
basic flaw in your thinking of how closing on the DELTA works and he can set
you on the right path.

Look forward to meeting you soon in Chicago.

Thanks,

Joseph R. Hooper

Chad,

When a stock increases in value, the option you originally sold as the second
part of the position, will also increase.
The rate of change in the value of the option is almost always slower than the
change in the value of the stock. This allows you to exit the entire position for
a profit by buying to close the option for a loss and selling to close the stock
for a larger gain.

Here is an example of a position I have traded in my own account where I

exited on the Delta:

ARD was the company where I:

BTO the stock at 39.60
STO the option at 1.75

Ten days later, the value of the stock had increased to 42.09 and the buy
back cost (the ask price) of the option was 2.74.
I closed the position by first buying to close the option for a loss of .99 and
then immediately selling the stock for 42.09. My profit was as follows:

BTO the stock at 39.60 and STC at 42.09 for a

gain of 2.49
STO the option at 1.75 and BTC at 2.74 for a
loss of .99
This resulted in an overall position gain of 1.50
or 3.8% for 10 days.

The Delta Effect is a great way to increase your

gains! I hope this helps.

Mark

Hi Joe.

-39-
I was very encouraged and benefitted by the LEAPS Seminar
Saturday. I'm feeling like I increasingly have a good handle on the LEAPS
strategies.

I'm sorry we missed our session today. I was here, but perhaps the phone
was busy momentarily when you tried to call.

I'm leaving tomorrow for India, and won't be back for over two weeks. So the
next time I'll be able to get with you will be Tuesday, March 13. I'll look
forward to that. Hopefully you won't have too many positions to fix for me at
that point (smile).

Love,

Jonathan

Dear Jonathan;

Thanks for your email. So pleased that the LEAPS Seminar gave you more
confidence in the use of LEAPS. They can certainly grow your account
faster!!

Sorry about missing the Seminar. They were doing fire alarms in the building
for about three hours and the noise just make it impossible to do the
Seminars.

Have a good trip and we will start back when you return.

Thanks,

Joseph R. Hooper

Hi Joe,

The Saturday LEAPS one day intensive seminar was very helpful. I attended
via your citrixonline connection and it worked well. I entered MATR @ 30.00
and watched the call expire. I also sold a secondary so the total revenue to
date is $1.83. I think it might be time to TSS however the stock price of
$25.91 does not appear to be in the 75th %ile. Would you TSS at this point?

Thanks,

Meredith

-40-
Dear Meredith;

Thanks for your note. You can TSS MATR now is you want. It is at the top of
the cycle.

Thanks,

Joseph R. Hooper

Hi Joe,

Really enjoyed the one day Leap's seminar on Saturday.

Currently this is what I have - leap on 5/11/06 Jan 08 - $30.00 stike, for
$9.55 I have done calls on it making about 90c. No calls on it currently.
Only the leap. As per seminar we looked at Pten leap that I have, you and
Aaron advised me to wait till the stock reached about $24.14 and then
sell to close the leap and then BTO at the 25.00 strike and do a Jan 09. This
morning the stock fell to 22.82.

I don't want to average down as I don't want to put more money into it.

Thanks.

Jai

Dear Jai;

Just a little patience, it is going backup now.

Thanks,

Joseph R. Hooper

Sylvia,

I've listened to several of your radio shows on KABC (Los Angeles). I've
acquired and am reading the book Covered Call and Leaps.

-41-
I know that its possible to do use this strategy with IRA's. However, nearly all
of my investment funds are in mutual funds under a 403(b) umbrella.

Is it possible to open a 403(b) account at BrokersXpress or another broker

familiar with your approach?

Thank you for your response.

Jim

Dear Jim;

Thanks for your note and thanks for listening to our radio show on KABC. We
also appreciate you buying our book.

You can use our covered call/LEAPS techniques in retirement accounts,

IRAs,401Ks and SEP retirement accounts. I would think you could do so in a
403b but I am not familiar with the terms of that particular account.

Now, you can not sell calls against mutual funds in any kind of an account.
However if you like mutual funds there is an alternative and that is ETFs.
These are exchange traded funds.

There is one for every mutual fund plus many more. They are index funds and
generally have much higher returns than traditional mutual funds. However,
they are sold like stocks so you can write covered calls and LEAPS against
them.

You might check this out with Gregg at brokersXpress. His toll free number is
1-800-233-9605.

Thanks and please keep us posted. Let us now if we can help you.

Joseph R. Hooper

Joseph,

Thanks for your prompt response. I did talk to Greg. 403(b) is like a 401(K)
for nonprofits. However, it required a Trustee (that function is served by most
mutual funds and they provide the requisite paperwork.

However, BrokersXpress is not able to provie that. Nor is a 3rd PArty Trustee
(like First Denver Trust) sufficent per Gregg.I do underestand that MFs can't
be used and I

-42-
understand the nature of ETF's. I have perior experience as a Broker, but
primarily worked with mutual funds.

I will explore some posibility of creating an appropriate agreement with my

employer to enable use of the 403(b) funds. However, to option out on their
plan woudl eliminate the 100% growth right off the bat, with matching funds.

The only other alternative is for me to find a chunk of nonqualified funds to

use in a general brokerage account. That certainly seems less tax-efficient,
though.

Sorry we can't do business right now, but I hope to find a way in the near
future.

Jim

Dear Joseph;

I've tried TSS a couple of time, but with less than favorable results. I admit
that on one case I made an error.

I have the following positions and as I look at the charts, I can't determine if
they are in a position for TSS:

NTRI (cost basis - $64.93) - current market 48.98

BBY (cost basis - $54.63) - current market 50.39
TTI (cost basis - $25.41) - current market 22.35
KOMG (cost basis - $40.15) - current market 32.30
JCOM (cost basis - $27.92) - current market 24.00

Are these in a favorable position for TSS? If not should I use JFC / SJFC?

Thanks in advance for your assistance.

Russ

Dear Russ;

Thanks for your note. As of this moment, 11:05 am cst, February 21, 2007
each of the stocks you reference are in a good position to TSS.

Hope this helps.

-43-
Thanks,

Joseph R. Hooper

Hi Joe,

Thank you for a terrific seminar and dinner afterwards. Over 250 people.
Wow! It was so great to connect with other people doing the same thing. By
the way, you have a lot of happy customers. Well, that's old news but I'm sure
it's good to hear again.

It was great to meet Jennifer and Tiffany as well. Please also tell your lovely,
wife, Pat, hello and thank you for the tip of frosting the champagne glasses..

BTW, here's a link to give you something to think about for when you want to
upgrade your Lexus. (Yes, Maybach is owned by Mercedes) Oh, yes, and tell
Pat that they have great innovative champagne glass holders in the back...my
favorite feature.

http://www.maybachusa.com/

Carol

Dear Carol;

Thanks for your note. It was great having you at the LEAPS Seminar this last
Saturday!!

We really enjoyed having you for dinner. It was a great time.

The Lexus was Pat's, I was just driving. Appreciate the link for the Maybach.

Pat and I really look forward to our next visit to your city. I hope we can take
you out to dinner again.

See you on Thursday.

Joseph R. Hooper

Joseph;

Good. Lexus is a chick car!

-44-
See you in SF some time soon. If we can take a day, I'd like to take you all to
two or three really good wineries. I'll even wash the car for the occasion!
And, no, I don't own (yet) a Maybach.

Carol

Hello Joseph,

I am a 2nd timer in the Chicago 2-day Intensive class and I am very grateful
for the smooth delivery and complete answers and explanations that Mark
Dannenberg delivers. I pick up something new with each meeting and Mark's
humor and in-site are excellent.

Many years ago I was a floor runner for Becker Securities, then graduated to
doing option spreads with a small team of independents, so I have a firm
grasp of option mechanics. Fortunately, I been away from options long
enough to have forgotten most of the plays we put on back then.

I really like your techniques and have successfully paper traded 8 positions
for an average of 4.2% in my first month. The only wish I have is to include a
beginners primer for setting up a tracking method and spreadsheet and
perhaps walking through a trade from beginning to end with spreadsheet
entries. I am a good chartist and trader but lousy bookkeeper. Any
suggestions would be appreciated.

Best regards,

Scott

Dear Scott;

Thanks for your email and comments.

Yep, Mark is just great. He has been using our covered call/LEAPS
techniques for a long time so he knows what he is talking about. He is just a
great teacher.

We really appreciate you comments for they mean a lot when coming from
someone with your background.

We have a spreadsheet designed to keep track of positions. It is part of the

ToolBox. Mark will be glad to walk you through a trade on the tool box. The
next Chicago 2-Day Intensive would be a perfect time for him to do that. It will

-45-
help the others in the class also.

Thanks and I hope we see you in Chicago soon.

Thanks,

Joseph R. Hooper

Mr. J. Hooper:

Joe, just finished a repeat course with Mark Dennenberg

in Chicago, what can you say about a talent like Mark,
we really enjoy his instruction. He makes one feel
important, answers all questions regardless,in a fun
and humorous way. Joe, Mark mentioned that if we asked
for your stock list you wouldn't mind sending. Would
appreciate. Maybe some day you will come to Chicago so
we could all meet with you. Of course after all this
snow is gone.Can't imagine coming up north to this
frozen tundra at this time of year.lol

Thank You

Y.I.C.

Paul

Dear Paul;

Thanks for your email. I have sent the stock list by another email. If you do
not receive it, please let me know.

Yep, Mark is just fantastic!! He not only is a great teacher but has many years
experience with the use of our technique. He has only had one loss in seven
years and that is because he violated a rule. He hates it when I remind folks
of that!!

Anyhow, we will be up there soon.

Thanks,

Joseph R. Hooper

-46-
Joseph;

Just finished the Feb. seminar in chicago and though Mark was great. We
are starting to do our traiding tomorrw if all is well. Could you send us the
stock list to help us get started. Also we will be signing up for the toolbox and
emails. thainks Jim and Joanne.

P.S. we are making plans to attend the March session also.

Thanks,

Jim

Dear Jim;

Thanks for your email and thanks for attending our Seminar in Chicago with
Mark. He is great for he has so many years experience with the use of our
techniques and he a great teacher on top of that!!

I have sent the list of stocks by another email. If you don't receive it, please let
me know.

Look forward to seeing you at the Seminar soon.

Thanks,

Joseph R. Hooper

Joseph;

Got a question about your LEAPS stock pick for this week. You gave ISCA
as the LEAPS stock of the week. By definition, the LEAPS is a call option
with more than 12 months to expiration, but the furthest expiration I can find is
September 07. Is this because of the platform I am using? Or, was this just
an oversight?

Gary

By the way, REALLY enjoyed the LEAPS seminar this past weekend. We
keep thinking we have really screwed things up, however, you always set
things in perspective for us. . and we haven't become one of those you love
to torment as yet.

-47-
(LOL) THANKS AGAIN!

Dear Gary;

Thanks for your note. ISCA would not be a good LEAP position because it
does not have the "09" calls. That portion of the Cow Report is more to
illustrate how to keep producing income from a stock regardless of it's
movements. I should have changed LEAP selection to Covered Call
selection. Thanks for pointing this out.

That is great that you enjoyed the first LEAPS seminar for the year. Usually
one does not mess up positions quite a bad as they think. There is always a
work out or solution. Thanks for your comments and we hope to see you at
another Seminar soon.

Joseph R. Hooper

Good Morning Joe,

Attend the Chicago Seminar this past weekend for the second time, and
some of the fog is starting to clear. Mark is a great teacher, and it is so helpful
to be able to return and hear his presentation again. I brought my wife Marty
along, and the reservations she had were quickly put to rest. She is now
solidly behind my developing the skill to make money doing covered calls.

May I please have the list of your two hundred plus favorite stocks, and also,
what is the CSE Managed Fund?

Hope I have the opportunity of meeting you some day.

Ron

Dear Ron;

Just sent the list by another email. If you do not receive it, please let us know.

Thanks for attending the Chicago Seminar this past weekend. I am so glad
that you wife was able to attend and is not enthused about our techniques.
Yes, Mark is great and justifiably so!! He has been using our techniques for a
long, long time and certainly knows how to teach the technique.

Please let us know if we can help you.

-48-
Thanks,

Joseph R. Hooper

Hi Joe,

I really enjoyed the LEAPS seminar on Saturday. As we discussed on

Saturday, I'm sending you a note to schedule a time for the 1 on 1 sessions.
I'm pretty much being forced into a new role at work, which is a step up but
means more travel, more responsibility, longer hours, and more issues to deal
with. Climbing the corporate ladder is not where my desires lie any more
especially with two young children at
home. I'm looking forward to expanding my understanding of the techniques
and what successful LEAPS trading can mean for me and my family.

Regards,

Tate

Dear Tate;

I will call you tomorrow (Thursday) to set up a schedule for the one on one.

Thanks,

Joseph R. Hooper

hi,

i have a question regarding the covered call screener. do you initiate a

position, following the rules outlined in your book, but make any exceptions if
earnings are due out within a week or two? The chance of a relatively large
drop if earnings disappoint is my concern.

Do you consider this or no? I have found about 5 stocks which are in the
lower 25% of the price channel, but earnings are due. I am not sure if using
the cpr is what you would do if

the stock drops 5-10%

-49-
Thanks

Jeff

Dear Jeff;

Thanks for your good question.

We do not consider earnings announcements. The reason we do not is that it

is always uncertain what reaction a stock is going to have. AAPL is a good
example where earnings are record and the stock goes down.

We don't enter positions for speculative gain. We just want a good company
that is consistent with earnings. We make our returns based on
"management" of the position. That affords a consistent return of 4% to 5%
without speculating.

Thanks,

Joseph R. Hooper

Hello Joe,

Thank you (and Aaron, of course) for the excellent LEAPS seminar in Dallas
on Saturday. The details of the LEAPS trades are much clearer now.

It was great meeting both of you. Met a lot of traders who will be joining our
'Cow Barn Traders' !

Had a great time. Again, many thanks for so patiently explaining the steps to
managing our trades.

All the best,

Julie R.

Dear Julie;

Thanks for your email. We really appreciated your attending the Seminar and
it was just great meeting you and visiting with you.

Yep, the Cow Girls have really become a force and seems so many want to

-50-
join. That is great and we are going to do really nice things for the Cow Girls.

Again, thanks

Joseph R. Hooper

Hi Joe,

Thanks for your email.

Met all the 'Cow Girls' at the LEAPS seminar Saturday. They're a great group!

The 'Cow Barn Traders' are a group I started about 4 weeks ago. We meet
through emails and on the Yahoo Messenger Conference Room. We have
about 15 members so far, (all CC/Stock seminar graduates) and email each
other with CSE strategy discussions. Our membersare from all over the USA
and Canada. We're having a great time and your name is
mentioned often (that's a good thing) !!

Just wanted to let you and Aaron know y'all have another fan club!!

See you In The Money!

Julie

Dear Julie;

Thanks for your note. That is great!!

Yep, we expect great things from you girls. We will help anyway we can.

Enjoyed seeing you last Saturday at the Seminar.

Talk later,

Joseph R. Hooper

Dear Joseph,

I have been reading the book somewhat irregularly and admire much of your
approach to the subject especially your chart reading methods and use

-51-
thereof which is not simple. I am not finding some of your safety techniques
easy to understand.

I musst admit, however, that I am disturbed by your failure to account for

commissions and other costs of trading and by the fact that you completely
ignore the fact that if your stock goes down during tthe course of a given trade
your capital is reduced at the end of the trade even with the addition of the
premium earned (in many cases) and thus you won't br able to have any
compunding advantage at the end of the trade.

That is 3 percent a month on diminishing capital is not 36 percent a year on

the original capital. Also you tend to ignore the time lag between trades.

None of this denies the viability of your system it just means its not as easy as
you would have it appear.

Regards,

Jay

Dear Jay;

Thanks for your email and thoughts.

Regarding your comments on commissions "...I am disturbed by your failure

to account for commissions and other costs of trading....."

Response: Commissions have become so cheap it is not worth spending the

time to compute them on each trade. It is easier just to take off some small
fraction of your return. For example, .90 cent commissions per contract (100
shares) is common today. If you buy a stock for $30.00 per share a contract
will cost you $3,000. The commission on that will be .0003%.

Hardly something to be disturbed by. If you sell the call and earn 5% or
$150.00 the commission is .006%...again, not much to be concerned with. If
you add them up for both sides of the transaction the total is .0005714%.
Again, I am not going to worry about that.

Regarding your comment "...that you completely ignore the fact that if your
stock goes down the course of a given trade your capital is reduced at the
end of the trade even with the addition of the premium earned (in many
cases) and thus you won't be able to have any computing advantage at the
end of the trade. That is 3 percent a month on diminishing capital is not 36
percent a year on the original capital."

-52-
Response: That is just not the case. We always emphasize integrity of
compounding. What is that? We know stocks go up and down. So, we teach
in our Seminars to use the price paid for a stock or the market value
whichever is higher to compute the percent return. So you do, in fact,
compound at that rate in true money based on what you paid for a stock or
the higher market value if that is the case. We teach that and it works. It is not
possible for it not to work.

Regarding your comment: "Also you tend to ignore the time lag between
trades".

Response: We do not. We only assume returns as a once a month event. In

fact, that is not the case in many situations
where positions are turned over once or twice during a month increasing
returns for compounding. If you assume just one transaction a month.....it is
kind of a stretch to assume that you are not going to be able to do another
trade the next month..so your statement does not hold water.....

Other than that, you comments are valid and appreciated. We appreciate you
as a client and maybe our exchange of thoughts here will help you to increase
your returns.

Thanks,

Joseph R. Hooper

Joseph;

As ever thank you for your prompt response.

Jay

Hi Joseph,

About a year and a half ago, I heard you on a financial radio station
somewhere in the Boston area, was very interested in your approach, called
in and won a free copy of your book "Covered Calls: A Wealth Option." Since
then, I've read the Cow reports each week, and read and re-read the book
several times. At the time, I didn't have much in the way of funds to invest in
this manner, so I've spent the past year furrowing away about $5000 that I
would like to start with, as well as $3000 to attend a live 2-day seminar in
order to get off on the right foot.

-53-
I have 2 questions:

1) Is the book that was just published significantly different than the one I
received earlier? Will I get a copy of the new book if I sign up and attend a
live 2-day?

2) Are there any open slots available in the 2-day seminar on March 10-11 in
Boston?

Thanks in advance for your response,

Chris

Dear Chris;

Thanks for your email. We appreciate the fact that you are working to make
this work. You certainly have the tenacity that will make you a success with
the use of our technique.

If you sign up for the 2-Day Intensive, you will get the latest complete Seminar
Manual which is not the book you have. The book that was published by
Wiley is the same as the latest Seminar Manual but you don't have the
Seminar Manual.

There are some spaces open for the March 10-11 Seminar in Boston. Aaron
and I will be teaching the March 10-11 Seminar in Boston since Mark will not
be able to be there due to another commitment.

I hope this helps you, if not, let's try again.

Thanks,

Joseph R. Hooper

Hi Joe;

the LEAPS seminar was great. I am always amazed at how this stuff keeps
coming together every time I listen to you guys. It is going to take me a while
longer to get it. By the way, are you going to be offering a LEAPS seminar in
Atlanta? In the meantime, I have a question regarding Roll Outs. When
should we do a roll out looking at the chart?. Should we buy the longer
expiration LEAPS low and then wait to sell a call high?

-54-
Help me understand that one.

Thanks,

Mario

Dear Mario;

Thanks so much for your comments. We appreciate that you attended the
LEAPS Seminar.

We have no plans at this moment to do a regular scheduled LEAPS Seminar

outside of Dallas.

The reason is that we will be doing the LEAPS Seminar every other month.
We can do it live and on line from Dallas. That way, everyone can attend.

We will probably give the Seminar on a non-regular basis in the other cities
including Atlanta but do not have a schedule for that at this time. We will keep
you posted.

Regarding your question about the roll outs: You should do a roll out when
you have less than 12 months left in your present LEAP. You should do it
when the stock is at top of the present price cycle. You should sell your
present LEAP, buy the longer expiration LEAP and sell the call immediately.

Hope this helps, if not, let's try again.

Thanks,

Joseph R. Hooper

Hi Joe,

I am new to the options trading experience and have a few basic questions as
I am just starting to do some virtual trading. After using the CSE screener
and studying the price charts, I was ready to establish two covered call
positions. In placing the trades, I was not sure if there is a preferred method
for purchasing the stock and the covered call option. It seems like there are
at least three ways to establish a covered call position -

1) Purchase the stock as a stand alone trade and then sell the option as a
stand alone trade, or 2) Use the BrokersXpress covered call entry screen

-55-
where both the stock and the option transactions are entered on one screen,
or 3) Use the BrokersXpress One Triggers

Other order entry screen to buy the stock first and then trigger the sale of the
option.

I know this is a pretty basic question and it may be covered somewhere on

the CSE web site, but I could not find it on the web site or in the book. Any
guidance you can provide in this area would be most appreciated.
Incidentally, I used the first option of buying the stock and selling the call
separately earlier today when I established my two positions in KWK and
CWTR. It seemed like more steps than options 2 or 3, but I felt like I had
more control of the process.

My last question, is related to timing. Is there an ideal time window in which

to establish new positions? I waited for the first week of the new option
month to establish today's trades, but I suspect that a more ideal time might
be in the second to last week or the last week of the option month for the
following month's options. Again, any help and insight you can provide will be
greatly appreciated.

Thanks!

Tom

Dear Tom;

Thanks for your note.

The best way to enter the orders, the most efficient is to buy the stock first
and then immediately sell the call. The other platform options have uses but
doing it manually is the most efficient. Modern platforms are just too efficient
to mess with the other ways just to create a position. You do have more
control as you experienced.

On timing of the entry of a position, you should use the near month up until
the last week of the near month. After that time value loss will make it more
difficult to get good returns for the near month. If you start too early in the
near month creating positions in the next month, you lose returns.

Hope this helps.

Thanks,

-56-
Joseph R. Hooper

Joseph;

Do you have any managed funds. I don't know how to do these covered calls
trading.

I am interested to invest in a good managed fund which gives me 3 to 6% per

month.

George

Dear George;

Yes, we do but is is closed. We will have a new one after the first of the year.

Thanks,

Joseph R. Hooper

Dear Joseph,

Curious to know if you have started your new managed funds 3% to 6% per
month . If so, please let me know details as to how to invest in this?

George

Dear George;

Thanks for your note. Yes, the first fund is active. It was fully subscribed. We
will notify you when the next one is ready.

Thanks,

Joseph R. Hooper

Dear Joseph and Aaron,

-57-
Thank you so much for sharing your knowledge and humor concerning leaps
at the leap seminar Saturday. Your ability to share your enjoyment of your
subject comes across with clarity.

I have been selling covered calls since the last of June, 2006. I have not
purchased a leap, but plan to start next week. Leaps seem less forgiving of
error than covered calls so you may be hearing from me.

Thank you for sharing,

Jeanette

Dear Jeanette;

Thanks so much for your email. We really appreciate your attending the
LEAPS Seminar this last Saturday. Remember, if you have any questions or
thoughts, please call or email.

Thanks,

Joseph R. Hooper

Dear Joseph;

I have been trading covered calls for almost 6 months now and would like to
ease my way into LEAPS. The question I have is suppose you've narrowed
your search down to two positions, both meeting all the criteria for proper
position construction, is it a coin flip or is there something else I take into
consideration (delta ratio, etc.) that pushes me one way or the other?

Thanks,

Kevin

Dear Kevin;

Thanks for your good question. Sounds as if you just might be ready for
LEAPS.

If two LEAP positions meet all the criteria then you would look at your
diversification. Is one better than the other from a diversification point?

-58-
Regarding the delta, that is central to the selection of the position if you are
doing a DLB LEAP position. You want the one with the greater delta if that is
the case.

Hope this helps, if not, let's try again.

Thanks,

Joseph R. Hooper

Joe:

Great to see you Saturday. I enjoyed the seminar.

BBY closed at 50 on Friday. I wrote the Feb 50's. Why wasn't the stocked
called?

I will make plans for us to have dinner on March 10. Let me know if you want
a steak, Italian, seafood or something else.

Thanks,

Michael

Dear Michael;

It was great seeing you this last Saturday at the LEAPS Seminar. Sorry we
did not get to spend anymore time together. However, Aaron and I fully intend
to have a great dinner with you when we come up for the Boston Seminar.

Hey, count your self lucky on BBY. That happens as I have explained in the
Seminars. That is the best thing that can happen. The stock is even up some
more today.

Thanks,

Joseph R. Hooper

Sylvia,

-59-
I've listened to several of your radio shows on KABC (Los Angeles). I've
acquired and am reading the book Covered Call and Leaps.

I know that its possible to do use this strategy with IRA's. However, nearly all
of my investment funds are in mutual funds under a 403(b) umbrella.

Is it possible to open a 403(b) account at BrokersXpress or another broker

familiar with your approach?

Thank you for your response.

Jim

Dear Jim;

Thanks for your note and thanks for listening to our radio show on KABC. We
also appreciate you buying our book.

You can use our covered call/LEAPS techniques in retirement accounts,

IRAs,401Ks and SEP retirement accounts. I would think you could do so in a
403b but I am not familiar with the terms of that particular account.

Now, you can not sell calls against mutual funds in any kind of an account.
However if you like mutual funds there is an alternative and that is ETFs.
These are exchange traded funds.

There is one for every mutual fund plus many more. They are index funds and
generally have much higher returns than traditional mutual funds. However,
they are sold like stocks so you can write covered calls and LEAPS against
them.

You might check this out with Gregg at brokersXpress. His toll free number is
1-800-233-9605.

Thanks and please keep us posted. Let us now if we can help you.

Joseph R. Hooper

Dear Joseph;

I can't find where to order the book from your website.

Does one get the extras (DVDs, etc.) if purchasing the book from say a

-60-
Barnes and Noble or Amazon or Borders?

Thanks,

Meg

Dear Meg;

Thanks for your note.

You can order the book off our site. The order buttons are right on the first
page of the website www.compoundstockearnings.com. Just scroll down until
you see a picture of the book not far from the top of the site.

If you buy from Amazon, Barnes and Noble or Borders, you do get the DVD.

Hope this helps, if not, let's try again.

Thanks,

Joseph R. Hooper

Dear Joseph:

I am leaving on a bike trip in a few minutes and will not be back until after the
market closes today. My portfolio besides having lots of cash, has the
following situation that probably should be addressed during Wednesday's
coaching situation:

Symbol StockBasis
ARXT 45.24
AVR 20.05
BBY 53.20
VAOAM BP 7.40
VPRAG SBUX 7.20

Thanks,

Moreland

Dear Moreland;

-61-
No problem, don't fall over and we will see you on Thursday.

Thanks,

Joseph R. Hooper

Hey Joe,

My Uncle Harry and his friend Larry introduced me to CSE. My husband Joe
and I attended the 2 day intensive in Dallas in January. My husband was
skeptical since he's a business major and all. And my head was spinning
trying to absorb all the info given out over the weekend.

But we're going to give it a go. You have given us hope that my husband's
retirement can be a reality.

Thanks for the Cow Reports on Saturdays. I learn something new every time I
read the emails.

I know nothing so I'm going to have to stick to the rules (somewhere I've
heard that's the best thing to do anyway!!) When I pulled up the CSE screener
today (2/21) only 2 stocks showed up. I'm assuming you reduced the
percentage return from 4% to 3%. And better to invest your money today as
opposed to waiting until tomorrow or later this week to get a better return?
Will there not be other opportunities since we are still early in the option
month?

Will you send me a list of your 200 favorite stocks?

Thanks,

Rosie

Dear Rosie;

Thanks for your email. We really appreciate you interest in our covered
call/LEAPS techniques. It will make a difference in your financial life.

Well, let me tell you, the investors that make the lowest returns or no returns
are those that are traditional investors that know it all. The folks with the
highest returns are those that just follow the rules. So, you will do good.

-62-
There will be many opportunities as the month goes buy to find good
positions. It is not something to worry about.

Let us know when we can help you.

Thanks,

Joseph R. Hooper

Joe,

Have you ever averaged down and rolled out a LEAP together, at the same
time? I have a position in BSX and either one could possibly work. I am
interested in discussing if both would work efficiently, since I should be rolling
the Leaps to '09 anyway.

Position Qty Purchase Current

Restructure
Price

Price Carry Over Cost

Leaps BSX 08-20C (wbxad) 10 7.55 1.15 6.40

To Consider for rollout &/or averaging down:

Leaps BSX 09-20C (vsbad) xx 2.55

To do this properly may involve a significant purchase to average down. I

have not performed a rollout before and am interested in your comments. I
can call your office after 8:00 am Thursday, or whenever it is convenient for
you. Thanks!

Don

Dear Don;

Thanks for your note. I would just roll out first and see what management
produces before considering averaging down.

Thanks,

Joseph R. Hooper

-63-
Joseph;

I am in the process of understanding the book I just received on Monday.

(Wow!) I plan on working with the covered calls for a month or so and then
come to a seminar. My occupation (youth minister) is hard to get away from
on the weekend. I am looking into the online live seminar...would it be
possible to interact on the Saturday live feed and then on Sunday record the
live stream onto my hard drive for the few hours I would be "working?" (I do
not want to cross-over into any copyright laws that you may have with that.)
When someone attends the seminar via the internet do you mail the manual
prior to the event? What service is used with the live A/V link?

Thanks,

Lantz

Dear Lantz;

Thanks for your email and thanks for buying our book.

There us probably no better way or more conservative way to build wealth

than with our covered call/LEAPS techniques. I am very pleased that you are
moving in that direction.

You cannot record the 2-Day Intensive Seminar. However, once you sign up
for the Seminar you can take the Seminar over and over for no cost so that
will help you.

Thanks again and let us know when we can help you.

Thanks,

Joseph R. Hooper

Greetings,

I was just introduced to your program via radio show (WLSam, Chicago),
visited your website, and am intrigued.

Question. My holdings are entirley in my IRA at this time, with sevral stock
funds present.

-64-
Can I use this as a tool for your program for investing, or do I need to
purchase stocks separately to work with?

I look forward to hearing from you on this, as it will help me decide how to
proceed.

Thank you.

Robert

Dear Robert;

Thanks for your note and thanks for listening to our radio show on WLS in
Chicago.

You can use stocks in your IRA to sell covered calls. You do not need to buy
new stocks. You have already taken the risk (owning the stocks) selling the
calls is just income to you. You cannot sell covered calls against mutual
funds. You can sell calls against ETF's (Exchange Traded Funds). They are
just like mutual funds except they are index funds with higher returns than
mutual funds. If you have regular mutual funds in your IRA you would need to
sell them to generate cash with which to purchase stocks and sell sell calls
against those stocks.

You can use our covered call/LEAP techniques in IRAs and 401Ks.

Hope this helps you, if not, let's try again.

Thanks,

Joseph R. Hooper

Dear Bob;

Thanks for your email. I am glad that we helped you.

You should really ask someone that is an expert in the workings of IRAs.

Thanks,

Joseph R. Hooper

Joe,

-65-
Thanks for sharing your knowledge!

Question:

Should I open my brokerage account as a CASH account or as a MARGIN

account?

Thank you for your time.

Louis

Dear Louis;

Only a cash account.

Thanks,

Joseph R. Hooper

Hey Joseph and Aaron,

Your Leaps seminar last Saturday was outstanding - you hit a homerun.
Thank you!

My workbook is a bit out of date, and I understand you will send updates.
Here are the updates, I think I need:

· Covered Calls TSS

· Leaps - maximizing profit using 10c rule
· Lease - trailing stops rules
· My workbook is the September 2006 version - any other changes
since September

If you wish, you may send the updates sent via email as an attachment.

Thanks again,

Frank

Dear Frank;

-66-
Thanks for your note. We really had a great time at the LEAPS Seminar this
past weekend.

Glad that you were there and received benefits from it.

I will give this email to Tiffany and she will get you the information requested.

Again, thanks for being a client. Let us know when we can help you.

Thanks,

Joseph R. Hooper

Hello.

I just heard of you through WLS radio, here in Chicago, and listened to the 2
hour intro on your website. I was so intrigued by what I heard that I signed on
the site before I've had a chance to talk to my wife regarding the whole
concept and/or attending the 2 day seminar.

So please hold off registering me for the March 17 seminar, for the time
being, and if we (wife and I) decide to go ahead with it we can sign up for the
next available seminar date in the Chicago area.

I'd appreciate your understanding in this and hope that it doesn't cause any
problems for you. I'm partially retired and my wife and I have been very
cautious about changing the way our investments are being managed by
professional money managers (at a considerable cost I might add). I now
have the time to manage those investments but not the knowledge to do so.

Thus your program is most interesting and it even sounds like fun. Would you
know of anyone in the greater Chicago area that might be willing to chat with
us about this investment method? I understand if people are hesitant but it
doesn't hurt to ask.

Thanks for your attention and an even bigger thank you for letting me know
an investment approach like yours exists.

Jim

Dear Jim;

-67-
Thanks for your email. Don't worry, we will not send the material until you let
us know.

Just let us know if we can help you. I am not in the office so don't know if you
paid for the Seminar or just signed up. If you paid for the Seminar, we will
refund the money in full if you decide that is what you want.

Thanks,

Joseph R. Hooper

Thanks Joe.

My wife happens to be a huge skeptic and is super sensitive regarding

scams, frauds, etc.

I've directed her to your website and asked that she listen to your 2 hour intro.
Hopefully this will start a process of further inquiry into the system of covered
calls and alleviate her worries. I'm sure you've faced this type of thing before.
Real problem is that her father was a speculator in puts and calls and lost half
the family fortune during the 70's and 80's. That sure doesn't put warm and
fuzzies into her psyche.

I didn't pay for the seminar yet so not to worry. The next few weeks we'll be
discussing the program and see what happens. Any chance on talking to
someone in the Chicago area that has been on the program and can relate
his/her experiences? It would be just another nugget of confidence for her.

Thanks again and I appreciate your understanding.

Jim

Joseph and Aaron

I Have your latest book. Last Tuesday listening to your free seminar when
the subject of virtual trading came up.Should I use options express or another
company. I started to sign up for the free service with option express when
they requested SSN and other information.

Are they requesting this information for future use when I open a real account.

Thanks,

Dean.

-68-
Dear Dean;

Most on line brokers have excellent "virtual trading" platforms. optionsXpress

is a very good one. You have to open an account to use it. You don't have to
fund the account. If you do, it is ready to go. That is why they require that
information.

Thanks,

Joseph R. Hooper

Hi Joseph,

I was under the impression that one cannot write a covered call for stocks
under $5. Is this true? If not, how does one find the call options for the under
$5 stocks?

Thanks,

"Charlie"

Dear Charlie;

You will find calls on some stocks selling for less than $5.00. That is only
because they were put out before the stock dropped to less than $5.00. When
they expire they will not be replaced unless the stock has a average price
greater than $5.00.

Hope this helps.

Joseph R. Hooper

Dear Joseph;

Thanks for the rapid and helpful response. I now have your book and will
look forward to a class once I am done.

Charlie

-69-
Sirs:

I'm still a novice with CC's. I recently was called out and would like to find out
where and when I should have known this was going to happen, and what I
should have done, in the hopes of preventing it the next time. The good news
is, I still made great money in four days, just not as much, I suspect, as I
could have as I was called out at a stock price lower than I purchased it for.

Here are the details:

BTO UTHR @47.95 on 02/12/07. STO .FUHBI FEB45call @4.00. STC

UTHR @45.00 on 02/16/07

I hoe that is all the info needed to help. As this position is closed, time is not
important. As always, your help is sincerely appreciated.

Regards,

Peter

Dear Pete;

Thanks for your question.

First, anytime you do a deep in the money covered call the bias is for you to
get called out. You made a return of 2.24% over 4 days for an annualized
return of 204.40%.

You did great. What in the world do you mean by "...what should have done,
in the hopes of preventing it the next time"?

Your comment "I suspect, as I could have as I was called out at a stock price
lower than I purchased it for". This would indicate that you don't know what
you are doing. Just think what you could if you know what you were doing!!

You need to take the Seminar.

Thanks,

Joseph R. Hooper

Dear Joseph;

-70-
Thanks for the discussion of Stretch Jays.

It seems to me that if stock is falling (a down channel)

one could also do a TSS sometimes? Does one do a SJFC in a falling stock
before one has a clear channel?

If there is a channel and one is in first two weeks of the month, does one still
do a SJFC only when you are in bottom 25% or can it be anywhere in the
channel?

Thanks

Steve

Dear Steve;

Hey, great to see you at the LEAPS Seminar in Dallas this past weekend.
Hope to see you in Boston in March. Aaron and I will be teaching that
Seminar while Mark is off on another obligation.

The TSS requires a formation. A new high and low chart pattern. The SJFC is
used when that does not exist.

Hope this helps, if not, let's try again.

Thanks,

Joseph R. Hooper

Hi Joe,

I enjoyed the LEAPS seminar this weekend. Excellent.

Quick question for you: I have been doing covered calls for 3 mos and all is
going well.

However, I currently have 3 positions that were not called out, so they are
uncovered. All 3 stocks have fallen somewhat from original purchase price. I
have looked at CPR, secondary calls, and hypotehtical TSS for Income and
none of these options are realistic at this time.

Am I missing something, or does this happen upon occassion and you just
need to be patient until opportunities become available?

-71-
Thanks,

Russ

Dear Russ;

Thanks for your note.

What are the stocks?

Thanks,

Joseph R. Hooper

Dear Joseph;

Perfect

Stephen

Joseph,

I did attend a seminar and loved it. However, I am still working on building my
confidence.

Great knowing you are only an e-mail away. Thank you for the fast responce.

Pete

Joe,

how are you doing today? I wanted to give you an update on my 500 share
position of GDP at $38.98. I did my first TSS for income on the stock liked we
talked about a few days back. I sold to open the June 30 option for $7.60 (Jan
22nd)-I bought it back yesterday for $6.60 a contract and made 2.5% in 2
weeks....brilliant!! Thanks for the insight!

What would you recommend doing now with the position...I still own the 500
shares and the stock looks to be bouncing back up a bit, should I consider

-72-
another TSS on the June option month again-or watch it for a few days before
writing another TSS call for income?

Thanks

Pete

Dear Pete;

Good, it is working just fine. The stock is on support at the moment so you
cannot TSS.

There is no JFC at the moment. The stock is heading up and when it reaches
36.60, TSS another call. Put in a GTC to BTC etc. etc.

Thanks for the report.

Joseph R. Hooper

Joe, any changes in your thoughts now on GDP as far as TSS for income?

Second, what do you think about ARXT-bought it at 45/share and sold the
Feb call? I know I should let the Feb call expire at this point but, do you think
the stock is boucing off of support?

Pete

Dear Pete;

Nope, GDP is on support, not ready for a TSS. However as this moment, 6:11
am pre-market 2/13/07, there is a great JFC with the Feb. 07 35 @ 25....just
free money.

Regarding ARXT..just let it expire. It will form a new pattern today or

tomorrow and on Monday you can sell a new call.

Hope this helps, if not, let's try again.

Thanks,

Joseph R. Hooper

-73-
Joe, do you still think GDP is at support....should I wait and see if it forms
another ^ today and heading down to write a TSS or have patience and wait
to see if it moves up close to $36.00 like you mentioned before?

Pete

Dear Pete;

Yep, GDP is still on support.

Patience, patience.

Thanks,

Joseph R. Hooper

Dear Joseph;

I am 31 my portfolio is non existent. Can I get started w/out having the stocks
to back up my calls.

Thanks,

George

Dear George;

You would need around $3,000.00 with which to buy a stock or two in order to
sell calls against them. At 5% per month on average using our covered
call/LEAP techniques you could compound that $3,000.00 in to approx.
$1,046,735.96 over about 10 years.

Hope this helps.

Thanks,

Joseph R. Hooper

Hi Wade,

-74-
Have you sent the list of stocks? Either way, please send the list when you
get a chance.

I've adjusted my spam filter so that everything from

"compoundstockearnings.com" will get through, just in case it was stopped
previously.

Thanks,

Andrew

Dear Andrew;

Thanks for your note. We have just sent the list to you by another email. If
you don't receive it, please let us know.

Thanks,

Joseph R. Hooper

Hello Joe,

I purchased ARXT, 2.5.07 @ 45.36, STO Feb 07 45 (PDQBI) @ 1.80. Option

has expired. I noticed CSE purchased ARXT, 2.15.07 @ 41.39. STO Mar 07
40 (PKQCH) @ 3.10. Has it reached a support level and headed back up?
Can you point me in the right direction for my situation.

Thanks again!

Carter

Dear Carter;

Thanks for you note. The stock is moving sideways and is at support. Just
wait for it to come back to resistance and sell another call. That will happen a
week or so. You are making your returns just fine on this stock. It's movement
is slightly upward. Don't worry about us creating a new position. We did that
because it is a good stock and is at support for that is when you create new
positions. You can't compare to your position. Numbers are all different.

Hope this helps, if not, let's try again.

-75-
Thanks,

Joseph R. Hooper

Tiffany,

Thanks so much for your support earlier. I've started receiving the updates.

Thanks in advance,

Sean

Dear Sean;

That is great, if you have any problems, just let us know.

Thanks,

Joseph R. Hooper

Joe,

I was scheduled to attend last Saturday's LEAPS seminar, but got sick on
Friday. I apologize for not calling to let you know that I wouldn't be able to
attend. That is not very good manners. I hope there will be another one
scheduled fairly soon.

Wednesday's onling coaching seminar was really great. As with the previous
one, I picked up good information on a couple of my holdings - specifically
AVR and GDP.

Thanks to you and Aaron for you help.

Jim

Dear Jim;

Thanks for your email.

-76-
Yes, we will schedule for the next LEAPS Seminar. Sorry you missed the first
one for the year.

Really glad that you benefited from the "coaching Seminar", so many others
do and it is a great tool to increase your efficiency with our techniques.

See you later.

Thanks,

Joseph R. Hooper

Dear Sirs,

I have listened to two of your " weekly talk back radio program"'s in Los
Angeles. I have not heard in either case a phone number announced to call
in.

My question would be if I could call...

Are you not losing your upside potential and retaining your downside risk
when you sell a covered call?

You radio "infomercials" make selling covered calls sound like a no lose
proposition, getting something for nothing.

Sincerely,

Rick

Dear Rick;

Thanks for your email and questions.

Let's just look at your questions:

Question #1: "Are you not losing your upside potential and retaining your
downside risk when you sell a covered call.

Answer: Nope. That is just old street broker thinking. We go for a consistent
4% to 5% per month on a consistent basis. That return is computed on the

-77-
higher of what you paid for the stock or the market price whichever is greater.
So the "downside" thinking is just dumb.

That is what our clients get in returns. The holding out for a return of more is
speculation and speculators do not have our returns. You can do that but you
will not have a return on an annualized basis close to what our clients receive.
Just ask any broker any where what their returns average and they will not be
close to that.

Question # 2: "You radio "infomercials" make selling covered calls sound like
a no lose proposition, getting something for nothing.

Answer: That is what speculation gets you...something for nothing. You have
no knowledge when you speculate so your returns are commensurate with
what you know. When you are using our covered call/LEAPS techniques, you
know something and you have paid for it. So it is not something for nothing.

Thanks,

Joseph R. Hooper

Hey Joe,

how are you doing today...? I just wanted to say thank you for all your help so
far. I started working on Covered Calls with your firm back in November and I
am averaging about 2.8% per month trading thru our platform. The option
fees are a little expensive at $25/option contract or I would be averaging a
higher return (closer to 3.6-3.8% month).

That's the cost of being a licensed financial advisor...I get hit with the higher
fees too...ha,ha!! Anyway, I was reading your weekend report and it said
somewhere in the client emails that you will know in a week or so about us
"Pro's" using the CSE tool box. Will you let me know if and when you have
received approval for us licensed persons to have access to the tool box. I
would like to get rid of the cost of using the Poweroptions site as a back up.

Thanks again!

Pete

Dear Pete;

-78-
Thanks for your email. We really appreciate your comments for they mean so
much coming from a professional in the market!!

We will keep you posted on professionals using the toolBox...should have

something in a week or so.

Again, thanks for your comments. Please let us know when we can help you,
just call or email.

Thanks,

Joseph R. Hooper

Hi,

sorry I have one more question. I have a few positions open, using the
screener. Last nite after work, I checked the screener as I always do, to see if
any good possibilities exist. I found one,JOYG. This morning when I saw the
market was down, I checked to see if any other possibilities existed, along
with JOYG. I was suprised whenJOYG was not listed, and only 2 stocks
were. What can happen between the close of the market and the open next
day, that woudl delete a possible play. Should I have opened a play on JOYG
anyway, or totally wait until it is listed again? In other words, should you only
open positions on the day it is listed.

Thanks Jeff

sorry to bother you again

Dear Jeff;

The thing to do is not worry about it. If you see a position and you can do it,
do it. As with our conventional covered call/LEAPS the selections on the
toolBox are not time sensitive but construction sensitive.

Hope this helps, if not, let's try again.

Thanks,

Joseph R. Hooper

Joe,

-79-
I emailed you last week about the stock list but never recieved them. Could
you please send to my home at Stanley_Zotas@yahoo.com ? Thanks
Joe...

Also last month TSS'ed THE --- the jan 08 30 call for 7.40 and it's hardly
budged. I think the most I could have squeezed out was 40 bucks. Should I
just wait or is there other action I should take. It was bought for $40...

Thanks Joe !!

Stan

Dear Stan;

I am sending the list again. If you don't receive it, send us another email.

Regarding THE, you have a profit right now in the buy back. The stock is on
support. Take the profit and TSS again at resistance.

Thanks,

Joseph R. Hooper

Mr. Hooper,

I have an unassigned position in ASF with a cost of $41.15 from January. I

collected $2.85 in premium for the February contracts, and could use a little
help on managing this one.

Would it be an appropriate time to do a defensive TSS as it looks like it may

be nearing resistance?

Also, I was also wondering if I could bring my mother instead of my wife to the
next 2-day

intensive in Chicago? I've had a difficult time changing her mindset of trading,
and thought it might be of some help if she could meet other people her age
who are having great success using CSE methods.

Thanks,

-80-
Brian

Dear Brian;

Thanks for your email.

ASF is at support not resistance. Don't TSS until the stock goes back to
resistance which will be around between $41.00 and $42.00.

You can not bring your Mother since you wife is the significant other.

Hope this helps, if not, let's try again.

Thanks,

Joseph R. Hooper

-81-