The Cow Report – February 9, 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 ……………………… 16

Upcoming Seminars ……………………… 18

Special offers ……………………… 19

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

LEAPS stock of the week ……………………… 22

Covered Call Toolbox ……………………… 23

CLIENT EMAIL SECTION ……………………… 25

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What we do

Let’s get right to the point. There is a better way to invest your money.

For over 7 years we have been teaching investors how to make a cash return
of 3 – 6% per month from their stock investments, regardless of market
direction.

We achieve these remarkable returns through a proprietary application of the

Covered Call technique, which has been developed and practiced by us for
over 25 years.

Our clients use this technique in both retirement and non-retirement accounts.
The large monthly returns can be reinvested to dramatically compound the
growth of a portfolio or withdrawn on a monthly basis to provide cash income
in retirement.

Does 3%– 6% per month, regardless of market direction, sound too good to
be true? We invite you to listen to dozens of recorded interviews with our
clients who achieve these returns, month after month, year after year, through
good markets and bad - just CLICK HERE.

Client of the week

Compound Stock Earnings Founder, Joseph Hooper and Aaron Zalewski host
"UNCONVENTIONAL WI$DOM - The CSE Investment Show", a weekly
financial talk back radio program airing in Dallas, LA, Boston, Chicago and --
Atlanta. Unlike regular financial talk shows, which are full of esoteric fodder
like paying off your credit cards or picking a better mutual fund - we talk about
how you actually make money in the stock market through the use of Covered
Calls.

Each week we have a different client on the show as our guest and the show
is then archived on our website. Kevin came to us 12 months ago when we
were presenting at the Rich Dad's Investor Workshop in Dallas. Kevin had a
significant holding in mutual funds and like most investors these were
returning 4 - 7% per year. After 12 months using our technique, he has
averaged 4 - 4.5% per month. Kevin now generates more cash flow in just
one of his accounts than his job as a top healthcare executive. Kevin
manages his money in between meetings, taking just 30 minutes out of his
busy day.

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

To listen to past radio shows CLICK HERE.

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These links may take some time to download.

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Joseph Hooper’s Weekly Editorial

....well so many things going on...I am sure you received the

announcement about the new policy for those that want to return to the 2-Day
Intensive Seminars each month...now there is no return cost.....and all those
that are signed up now (grandfathered in) and all those that sign up in the
future will not have any charge for re attending.....

.....after 4:00 pm CST February 14 the price will be going up for the 2-Day
Intensive Seminar....no cost to re attend but the cost for the Seminar will be
more....

IMPORTANT

......well, if you have not subscribed to the Market Hours Live Online
Coaching..you are missing out....it is helping so many to increase their
earnings....that's how you do it...you bring your problems and questions...you
hear others and the answers to their problems and questions....you get
involved....it is live and it is a problem solving 2-hour and longer session........

....next weekend we are holding the first (for the year ) LEAPS one day
Seminar in Dallas......you can still sign up....we have folks coming from all
over the country for this Seminar..... want to associate with some of the best
around using our LEAPS techniques...you should be there....

.......New techniques, new techniques coming for the 2-Day

Intensive....good thing that we went to the new 2-Day format for that
Seminar.....

...check out our website, https://www.compoundstockearnings.com/want-

proof.htm and look at the actual broker statements of our clients showing
excellent returns achieved through the use of our covered call/LEAPS
techniques....

....you know there are always those "financial dullards" that just can't accept
that the world changes....professions change..techniques change (by the
way... the covered call techniques have been around 40 or 50 years or longer
but just came to practical use by everyday investors with the advent of the
computer and the internet...so no magic here just adapting to reality..but the
dullards can't seem to see that)....these clients statements show that....you
can earn excellent returns on a monthly basis that brokers and funds
sometime acheive on a yearly basis...

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.....the main street brokerage community has such a hypnotic strangle hold on
the minds of their clients that the clients are like investment zombies walking
around saying stupid stuff.."market turned against me" .."stop loss"..they
cannot spell past "five" 5% year in the stock market, 5% per year in bonds,
5% per year in the money market ...5% everywhere .. you can't do better....

...what is interesting the brokers are not too smart...they are just speculators
and don't know what to do when things go down...they have no management
ability...why...because they don't have to have that ability...just sell the loser
stock and let's move on......the main street investment world is one of
speculation not of management.....this factor removes them from any degree
of responsibility....their just blowing in the wind with your money...."it's not
their fault when things go wrong...the market just turned against them....."

.....if you look at all financial editors and they are echo this
thinking that you can't make over 5%....you read it every day....could it be that
they all work for the banking institutions...after all you can get that in
CD's...why invest and take risk...can you believe newspapers pay these
yahoo's and act like they know something about investing???...

.....then you wonder why the "baby boomers' can't retire....

......we have many clients that have retired after learning our
techniques...over and over they tell stories of their former employer hiring
financial advisers to advise these folks before retirement about what they
should do...to a man the story is the same....they cannot make it without
another job .....a greeter at a discount store etc....such bull.....these clients go
right out and retire using our techniques...live much better than they did when
employed....just go figure...

....what is interesting is that all these dumb financial editors say you should
not expect to earn more than 5% on your investments....to show how stupid
they are...even in their own world of incestuous stupidly (managers of mutual
funds)...even these pathetic investments have earned on average around
12% to 13% per year over the last 20 years (it is the investors that screw
themselves out of these returns by following advice of brokers and newspaper
financial editors and buying and selling these funds tying to time the
market)....the financial editors don't even recognize that....just amazing.....

“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.

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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
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".....

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....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....

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........

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.....these young folks are doing great with the use of our program....if you
want to be the best parent ever...sign up for one of our 2-Day Intensive
Seminars and bring your kid or kids.......for free....

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

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

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Attend a FREE LIVE ONLINE introductory workshop

These sessions are held each Tuesday evening from 7.00 – 9.00pm Central
Time. They are conducted live over the internet, so investors from all over
the world can attend in the comfort of their own homes.

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

technique. Investors are also invited to discuss particular positions they hold
and we will demonstrate how to lock in a MONTHLY return of between 3% -
6% on a stock investment.

To register for a free online introductory workshop - CLICK HERE

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Update of this week’s activities

Here is an update of the week’s activities. The transactions below are ones
executed by us. We also send these transactions out real time, as they
happen, to our Covered Call / LEAPS Selections subscribers. Watching what
we’re doing in our accounts is a great way for clients to learn to the practical
application of the technique!

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

month. (You can only subscribe if you are a graduate of the 2-Day Intensive
Seminar.)

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

Here is an update of the Open and Closed Positions for our Managed
Covered Call Selection service. It shows all positions that have been entered
into and closed out and the returns. It also shows the transactions that have
been entered into and are still open and the net income to date from that
position.

MANAGED COVERED CALL SELECTIONS - COMPLETED AND OPEN POSITIONS

RETURN ON ENTIRE PORTFOLIO

All Positions Average At 3-Nov-06
All Positions Days Held Return
AVERAGE 57 6.9%
AVERAGE PER MONTH 3.8%
AVERAGE PER YEAR 55.6%
1. Average per year includes monthly compounding

The above table shows the current return over the entire portfolio since March
2005. The return is 3.8% per month or 55.6% per year. Please see the next
page for a list of the open and closed positions in that portfolio. The open
positions are the positions in the portfolio that we are currently managing and
the closed positions are those that have been profitably completed.

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OPEN POSITIONS
Stock Details Near Month or TSS Call
Date Purchase Days Net Prem Short Call
Stock Purchased Price Held To Date Exp. Strike Price

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

ELOS 22-Mar-06 $29.62 226 8.1%
EXP 23-May-06 $50.07 164 1.3% Apr-07 $40.00 $6.50
GG 21-Aug-06 $29.64 74 8.6%
JOYG 22-Jun-06 $49.78 134 6.2% Jan-08 $25.00 $14.80
MTH 10-Jan-06 $66.58 297 28.4% Jun-07 $35.00 $11.80
NLS 11-Jan-06 $19.65 296 13.5% Jan-08 $10.00 $3.20
NVT 11-Jul-06 $40.20 115 14.7% Jan-08 $25.00 $13.10
PSUN 7-Feb-06 $24.61 269 10.4% Jan-08 $12.50 $8.40
SNDK 11-Apr-06 $61.38 206 19.1% Jan-08 $25.00 $18.30
URBN 24-Feb-06 $27.73 252 24.0% Jan-08 $17.50 $9.00
WIRE 28-Sep-06 $36.85 36 9.9% Mar-07 $17.50 $6.10

AVERAGE 188 12.6%

AVERAGE PER MONTH 2.1%
AVERAGE PER YEAR 25.0%
* Net premium to date =
1. Uncalled return on positions that have near month calls. And / Or
2. Net premium received from calls that have expired or have been bought to close.
ie: Net Prem to Date does not include premium from open TSS call positions

Please see the next page for the completed Managed positions over the last
12 months.

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CLOSED POSITIONS
Date Days
Stock Opened Date Closed Held Return

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

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

Prior to last option month

AAPL 20-Apr-06 26-Sep-06 159 6.6%
HXL 24-Sep-06 20-Oct-06 26 6.8%
IRF 28-Sep-06 20-Oct-06 22 3.8%
MTW 28-Sep-06 20-Oct-06 22 4.3%
NUE 7-Sep-06 20-Oct-06 43 6.2%
SII 5-Oct-06 20-Oct-06 15 3.4%
BEAV 23-Aug-06 15-Sep-06 22 4.1%
CAL 17-Aug-06 15-Sep-06 28 4.2%
GFIG 7-Sep-06 15-Sep-06 8 2.4%
NTRI 22-Aug-06 15-Sep-06 23 5.7%
THE 29-Aug-06 15-Sep-06 16 4.2%
WIRE 22-Aug-06 15-Sep-06 23 4.3%
AUO 25-May-06 18-Aug-06 84 11.0%
GME 26-Jul-06 18-Aug-06 23 5.4%
RIMM 20-Jul-06 18-Aug-06 22 4.7%
SSL 20-Jul-06 18-Aug-06 28 6.6%
TPX 24-Apr-06 18-Aug-06 115 10.7%
BJS 27-Apr-06 21-Jul-06 66 8.9%
CBI 24-Apr-06 21-Jul-06 73 8.0%
NOV 20-Jun-06 21-Jul-06 136 4.0%
USNA 21-Mar-06 21-Jul-06 227 11.0%
NOV 22-May-06 16-Jun-06 25 4.8%
YHOO 4-May-06 25-May-06 21 4.3%
MEE 27-Jan-06 3-May-06 96 14.6%
PCLN 18-Apr-06 3-May-06 15 4.6%
MGM 17-Feb-06 21-Apr-06 63 9.5%
TDY 15-Mar-06 21-Apr-06 37 5.9%
THE 22-Mar-06 21-Apr-06 30 6.3%
YHOO 5-Apr-06 21-Apr-06 16 4.0%
CAI 18-Jan-06 17-Mar-06 58 7.6%
COGN 3-Feb-06 17-Mar-06 42 4.3%
ECA 7-Feb-06 17-Mar-06 38 6.7%
GLBL 17-Feb-06 17-Mar-06 28 4.1%
NSS 22-Feb-06 17-Mar-06 23 4.0%
NVT 25-Jan-06 17-Mar-06 51 7.8%
PII 6-Feb-06 17-Mar-06 39 3.8%
PLCE 23-Feb-06 17-Mar-06 22 4.5%
THX 8-Dec-05 17-Feb-06 71 12.4%
SCHN 17-Jan-06 17-Feb-06 31 3.9%
COHR 11-Jan-06 17-Feb-06 37 4.4%
GTRC 20-Dec-05 17-Feb-06 59 9.5%
FMD 13-Dec-05 17-Feb-06 66 12.7%
CHKP 19-Dec-05 20-Jan-06 32 4.1%

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COGN 28-Nov-05 21-Jan-06 54 6.0%
MBT 8-Dec-05 22-Jan-06 45 4.7%
OI 15-Nov-05 23-Jan-06 69 8.1%
VCLK 10-Nov-05 24-Jan-06 75 13.6%
OVTI 20-Jun-05 23-Jan-06 217 19.7%
ADCT 30-Aug-05 16-Dec-05 108 14.9%
AHM 2-Dec-05 16-Dec-05 14 2.5%
CREE 9-Nov-05 16-Dec-05 37 5.7%
ENER 16-Nov-05 16-Dec-05 30 7.9%
FDG 14-Nov-05 16-Dec-05 32 5.5%
WFR 25-Oct-05 12-Dec-05 48 22.2%
MIK 22-Nov-05 23-Nov-05 1 2.8%
EPL 8-Nov-05 22-Nov-05 14 1.5%
MT 8-Nov-05 18-Nov-05 10 2.8%
CREE 12-Oct-05 21-Oct-05 9 5.4%
JBHT 25-Jul-05 11-Oct-05 78 3.5%
CAMD 29-Sep-05 4-Oct-05 5 2.6%
TPX 29-Aug-05 16-Sep-05 18 2.9%
ZQK 8-Sep-05 16-Sep-05 8 2.2%
OS 24-Aug-05 30-Aug-05 6 6.2%
TOMO 8-Jul-05 20-Aug-05 43 5.3%
WFS 15-Jul-05 20-Aug-05 36 4.0%
NTGR 28-Jul-05 10-Aug-05 13 8.9%
VTIV 4-Aug-05 8-Aug-05 4 2.5%
DRIV 19-Jul-05 28-Jul-05 9 5.0%
SYNA 21-Apr-05 19-Jul-05 89 5.1%
KOMG 21-Jun-05 18-Jul-05 27 0.4%
RECN 6-Jul-05 16-Jul-05 10 1.9%
PALM 8-Jul-05 14-Jul-05 6 7.9%
IIG 27-Apr-05 8-Jul-05 72 5.1%
IIG 7-Jun-05 8-Jul-05 31 11.2%
IIJI 1-Jul-05 8-Jul-05 7 5.4%
PLAY 21-Jun-05 6-Jul-05 15 2.6%
PALM 21-Jun-05 30-Jun-05 9 6.1%
NAVR 7-Jun-05 22-Jun-05 15 8.5%
MDR 27-Apr-05 20-Jun-05 54 4.5%
TSM 13-Jun-05 15-Jun-05 2 0.6%
ELOS 10-Jun-05 13-Jun-05 3 2.0%
CEDC 2-Jun-05 10-Jun-05 8 3.1%
ASPT 1-Jun-05 7-Jun-05 6 1.1%
SHOP 21-Mar-05 2-Jun-05 73 19.8%
PALM 23-Mar-05 24-May-05 62 5.7%
DRDN 20-Apr-05 4-May-05 14 4.0%
NAVR 29-Mar-05 27-Apr-05 29 9.3%
IIG 30-Mar-05 25-Apr-05 26 7.4%
DRIV 22-Mar-05 18-Apr-05 27 3.5%
KOSP 29-Mar-05 30-Mar-05 1 4.3%
Average prior to last option month 6.4%

Closed transactions average

AVERAGE 40 6.3%
AVERAGE PER MONTH 4.9%
AVERAGE PER YEAR 58.3%

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Here are the Covered Call / LEAPS positions that closed out this week from
our Covered Call / LEAPS Selections Service.

LEAPS Selection Service - Close outs this week

Return on Annual
Stock Strike Position Hold Time Return

FD $40.00 10.6% 3 1290%

IIJI $7.50 6.9% 153 16%
IIJI $7.50 11.1% 48 84%
EK $25.00 5.2% 28 68%
MCD $40.00 5.4% 20 98%
TPX $20.00 5.6% 20 102%
NOC $65.00 6.3% 278 8%
AVP $30.00 6.9% 15 169%

Remember, our returns are represented by real cash, not paper values that
can disappear as quickly as they appear. These cash returns can be
withdrawn and spent on whatever you desire or all or some positions can be
left to compound your values into significant figures as time goes by.

Unlike speculating in stocks, when writing covered calls, the day to day
market value of the stocks and LEAPS is not significant. It is the cash returns
produced each month that prevent you from finding yourself in a situation
where you have to liquidate a stock at a loss to generate income. You receive
every month returns that the average stock speculator would be overjoyed to
have on a yearly basis.

If you have stocks and are not selling calls against them each month, you are
leaving large amounts of cash on the table month after month. Every month
you do not sell covered calls against your stocks you are simply making less
money and exposing yourself to more risk. If your broker says it is risky to
sell calls against your stocks, he is ignorant of the covered call technique (like
most are) and you need to take control of your own financial future.

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

month. You can only subscribe if you are a graduate of the 2-Day Intensive
Seminar.

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

Here.

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

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

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How to get educated

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

incredibly poor. The Street, serving it’s own interests, has taught us all the
wrong ways to invest.

Even the most business savvy and educated generally have no idea how to
effectively invest for growth throughout their working lives and for income in
retirement.

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

their financial futures. To the correctly educated, the foolery going on in the
investment world today is almost criminal.

You need an education about how to invest your money. No one else is
going to do it for you. You wouldn’t be reading this if your financial advisors
had consistently made you money in both good markets and bad.

Attend a FREE LIVE ONLINE introductory workshop

These sessions are held each Tuesday evening from 7.00 – 9.00pm Central
Time. They are conducted live over the internet, so investors from all over
the world can attend in the comfort of their own homes.

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

technique. Investors are also invited to discuss particular positions they hold
and we will demonstrate how to lock in a MONTHLY return of between 3% -
6% on any stock investment.

To register for a free online introductory workshop - CLICK HERE

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2-Day Intensive Seminar

Our 2-Day Intensive Seminar provides the most comprehensive Covered Call
education available anywhere in the world. The seminar is also offered online
through a live audio visual link over the internet - so attendees can learn in
the comfort of their own homes.

The Seminar explains and significantly elaborates on every topic contained in

Covered Calls: A Wealth Option and covers much, much more.

The most vital function of the 2-Day Intensive Seminar is to show investors
the practical application of our proprietary rules and techniques for Covered
Call investing. This is the information that simply can't be passed on through a
book.

Investors leave the 2-Day Intensive Seminar with an unprecedented

knowledge of the Covered Call technique and are ready to begin investing the
very next day.

Our 2 Day Intensive Seminar includes our 180 page “Covered Calls: A Wealth
Option - Seminar Manual” which is the most comprehensive covered call
manual ever compiled and is not available for separate purchase.

Also included in the 2 Day Intensive Seminar package are 10 two hour
audiovisual Herd Talk CD's (a separate $700 value).

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

To register -

-17-
Upcoming Seminars

2-Day Intensive Seminars

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

Upcoming events include:

• Chicago – February 17 & 18, 2007

• Dallas – February 24 & 25, 2007
• Los Angeles – March 3 & 4, 2007
• Atlanta – March 3 & 4, 2007
• Boston – March 10 & 11, 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 -

-18-
Special Offers

Educate your children for free

You know one of the greatest missed opportunities by many clients is not
teaching their teenaged son or daughter our covered call technique...what for,
you ask??....well, there is no better way for a young person to provide for their
own college education and life thereafter than learning our technique....

....what brings this up is the ever increasing number of clients signing up for
the 2-Day Intensive and paying to bring along their sons and daughters...
The last three 2-Day Intensives we have had a Father who is currently using
the technique, pay for and bring along a son so that he can start investing
too... pretty smart move as it turns out....

.....a deposit of $5,000.00 when a child is around 13 will turn into $93,395.92
by the time the child is 18 and graduates from high school....that assumes
you use our technique to do conventional covered calls and average 5% per
month......that provides funds for tuition .....with enough left over to continue to
produce monthly income to pay for the other expenses.....what an
opportunity!!.....

.....we have clients who have teenage sons and daughters (and
grandchildren) who are earning better monthly returns than the parents....For
example, many of you would have heard our great client Kevin recently on
our radio show "Unconventional WI$DOM". Well, Kevin's been earnings
4.5% per month over about 12 months now. He’s also got his two sons
involved and they are averaging around 4% a month. How is that
possible?....because these young folks do not have the limiting mindsets of
the parents because they have not been exposed to the corrupt thinking of
main street investment advisers and brokers.....

......a good example is how quickly young people take up and master
computers.....I am still trying to figure out how the radio
works.....anyhow.....point is that young folks are mastering our technique
quicker than their parents.....

.....once you set them up, you have given them the ability to pay for a college
education and have a nest egg that will give them the ability to continue to
build their wealth and maximize life's opportunities once they are out of
college by not having to take some "job" so they can pay off college loans etc.
or take a "job" to be able to pay the rent....besides...it will assure they will

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move out of the house quicker....because they will graduate college and have
immediate income if they continue to invest.....

...can you think of anything better to give or teach your children??!!....you

really set them up for life.....

....something else on this subject...Aaron is a good example of what a young

person can do.....when Aaron was 20, he purchased our book “Covered Calls:
A Wealth Option” emailed me from Australia stating that he wanted to learn
the technique so he could leave his job in investment banking, invest with our
technique and became financially independent....he did in a big time way....in
a short time...

.....is there a better place for your teenager to get motivated than to bring
them to a 2-Day Intensive, meet Aaron and expose them to a golden
opportunity that can change their lives forever??!!.....

....as a special motivating benefit, Aaron will take all the teens attending the 2-
day Intensive to lunch during our lunch break to discuss with them the
benefits of learning this technique early in life, paying for their education and
building a life with wealth vs. having to take unrewarding jobs just to get
along....Aaron can be a much more motivating influence than most parents
because he is young and started learning our technique at a young age and
the younger folks can identify with him......

......we will help with this. If you want to sign up for the 2-Day Intensive in
Dallas (June/July/August) or Boston (August) you can bring your teenagers
for FREE.

... just pay the regular $2,995 for yourself (all the other benefits remain like
support, attend as many times as you wish etc etc).. and bring them
along.....here is a link for that purpose...this is a special price and only for
your own children..... You can call Sylvia to register, or CLICK HERE.

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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.

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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 ISCA. The top of the cycle (circle) indicates when you should sell
the call and the bottom of the cycle (X) indicates when you should buy it back
for a gain. Just look at all the returns that could have been made with ISSC
over this particular period!! Buy HERD Talk Two and find out how to do all
this buying and selling, just CLICK HERE to buy the CD. Each CD is $69.95.

-22-
CSE Covered Call Toolbox

CSE Covered Call Toolbox

What is the Covered Call Toolbox?

The Covered Call Toolbox is a proprietary search and filter tool developed by
us specifically for the use of our technique. The toolbox completely replaces
and improves on PowerOptions, searching for positions with REAL TIME
PRICES and is tailored specifically to meet our rules for finding and
constructing positions.

The toolbox includes the following items:

1) CSE Screener – Covered Calls (REAL TIME PRICES)

2) CSE Screener – LEAPS (REAL TIME PRICES)
3) Option Chain (REAL TIME PRICES)
4) SSR Worksheet
5) CPR Worksheet

Following is a screenshot of the new CSE Covered Call Toolbox:

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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.

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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.

………………………………………………………………………………………….

Hello Joseph,

I have recently purchased your book and have been paper trading your
system successfully for 3 months now.I finally know my financial future is
secure.

Thankyou so much, Plus, Would you please add me to your new managed
fund list.

Thanks again,

Chris in Australia

Dear Joe and Aaron,

I want to thank you for a great seminar in Los Angeles this last weekend. As a
recovering "day trader" for the last 10 years I now see the light and realize
that there is a better and less anxious way for me to trade. After reading the
book and applying the techniques I was able to pay for the seminar my first
month writing covered calls and expect most of those positions to be called
away for a return of 5% gain in one month. There must be a correlation
between the amount of time one has been trading and the eagerness to put
your techniques to work.

The two of you make a great team. Joe, your complete wisdom about the
markets and how to make every situation work out has given me the
confidence to sell cover calls knowing there is always a way to make money
under every circumstance. Thank you for putting up with all the "silly
questions" Aaron, your enthusiasm, the true concern you give each question,
and your monk like patience to insure your students understand the system
and can apply what they have learned is so refreshing.

For those that are "on the fence" about taking the seminar my advice is to

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stop waiting and get started immediately. Read the book, open a virtual
account, and attend. Any potential attendees are welcome to contact me via
my email and I will be glad to share my experience with them.

Could you please email me the list of 250 stocks you write covered calls on.

I look forward to attending another seminar soon.

All my best to CSE.

Sincerely,

Chris

Dear Chris;

Thank you so much for this great email. It expresses what we try to help
others see and understand about our covered call/LEAPS techniques. That
being that there is a way to make consistent returns on stocks as they go up
and down in value. That is what all stocks do. That is the essence of investing
for it produces cash income that can be spent and invested again to
compound your assets to remarkable values.

Aaron and I really coming to Los Angeles and doing the 2-Day Intensive
Seminar. The folks are just great!!

Thanks so much for being a client. Remember, when you need help, just call
or email.

I am sending the stock list by another email. If you do not receive it, please let
me know.

Hope to see you in LA again soon.

Thanks,

Joseph R. Hooper

Hi Joe,

I wanted to thank you and Aaron for another great weekend--slowly but
surely. I am looking forward to the Leaps seminar in two weeks. I appreciate
your efforts at conveying these techniques and strategies.

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I think it represents a very sweet humanitarian urge to share something that
can greatly benefit others. You may work a bit on cultivating a somewhat
"crusty" image, but your dedication shows through. It doesn't hurt to make
some money in the process.

Thanks again for your offer to help me with my current GS position (once
again). I did a JFC last week with the stock at about $207.50 and sold a Feb
07 $210 call for $3.00. I think it is sitting at $213.43 and a $5.60 buy back. I
did a similar move with BA, and sold a Feb 07 $90 call. I think it is presently
at $89.92 with a $1.25 buy back. I have a significantly lower cost basis in
both stocks.

I did establish 4 new positions from your screener at the beginning of the Feb
options month, and have closed out 3 on the Delta. The 4th is $.02 from the
stock price and should probably get called out easily. I feel as though I am
making steady progress in my understanding and execution, even though I
have mangled a couple of positions in January and February. I have done
particularly well with the JFC trades, but those would be hard to screw up,
even for me. Thanks again for your help with those.

My ears perked up when you mentioned that you had spent time in the Air
Force. My father was a career guy (went from the Army to the Air Force after
the war) and I went to the Air Force Academy 1961-65. I would be interested
to hear about your time in the service. I think that we are pretty close in age.
After leaving the Air Force, I went to graduate school at UCLA 1967-71, got
my PhD and was on the faculty in the Med School until 1977. I almost ended
up at the Univ of Texas Medical Branch in Galveston (there is a marine
biomedical institute there right on the Gulf). I had many good friends teaching
and doing research there in the 1970's and 1980's. In 1977 I met my lovely
bride, got married and she and I went into business together. In 1989 I
started a software/hardware consulting firm (working alone), and have done
that ever since. My wife has a retail store in Malibu (since 1985). I began
trading about 1990 as a sidelight. I have been all over the map, and my
results show it.

I am also looking forward to attending your church on Sunday. We are very

active in our church here in LA. Believe it or not, there are many large and
active conservative Christian churches in LA.

Once again, thanks for the exciting weekend. Hope to speak to you
tomorrow.

Sincerely,

Hugh

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PS--Please also convey my hearty thanks to Aaron. All kidding aside, you
two do a great job. In golf, we call it hamming and egging. If you don't play,
you probably don't know what that means, but it is complimentary.

Dear Hugh;

Thanks so much for your email. We certainly enjoy seeing you again this last
weekend in LA. Aaron and I both really enjoy you folks out there.

I would like to talk about GS and BA in the next few days. If you will call I
would appreciate it. If I am busy or out of the office, I will call back.

Yep, the JFC's are great techniques to use to generate cash. However, you
are dong an excellent job with those close outs on the DELTA. Out of 4
positions you are already out of 3 and the other will be called out...you are
living the perfect covered call experience.

Yes, we are about the same age. I got out of grad school in 1967 and out of
the Air Force in 1972. I was a Capt. in SAC. Will really enjoy going over old
"war" stories with you. You and your wife have such an interesting life!! Look
forward to meeting her in the very near future.

You are really going to enjoy attending our Church. Will give you details on
how to get there in a few days.

Hugh, again, please give me a call in a few days for us to update our thinking
on GS and BA.

Thanks for being such a great client, we really appreciate you.

Thanks,

Joseph R. Hooper

Hi, Joe.

Just thought I would pass along a progress report. I bought your book from
Amazon.com when it first came out, read it cover to cover three times, and
almost tripped over myself in my mad rush to get an account opened with
OptionsXpress. I put on two trades in December; got out on the delta with one
(WFR) after just a week for a nice profit of about 4.2%, and had the other one
(UTIW) called out for a monthly return of 4.9%. WOW. I currently have seven
positions on with the February cycle. Six of them are well in the money right

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now and the other one has an uncalled return of well over 5%. So far I am a
very happy camper. I realize the real secret to success in this business is
management of the uncalled positions, but right now I'm content to clip
coupons by being called out.

I've been getting the COW Report and learning a lot by reading the e-mails.
One suggestion: it would be helpful if clients' mail was dated so that we could
refer to the charts and learn from analyzing them to the exact day. It would
aid in understanding and interpreting the chart action. Just a thought. Also,
could you send me the list of your favorite stocks? It would really be
appreciated.

Keep up the great work---this is exciting!

Dave

Dear David;

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

Listen, you are doing great!! It is apparent that you are following the rules for
selection and entering of positions.

Let me tell you that if you follow the rules for selection, construction and then
enter according to the chart, you will have the majority of positions called out
each month. The two or three that are not will just be managed to for the
returns. You will always close out for a profit a few the following week after
the third Friday for there are always a few that miss being called out by only a
few cents and you have the choice of selling the stock on Monday or selling
another call for a very large premium since the stock price is high.

We really appreciate your comments. I like you idea about the dates on the
emails and we are going to do that starting in a couple of weeks.

We come up with new services and techniques based on our clients needs.
That is what is great about you being a client. You are obviously following the
rules and criteria. Thanks so much for being a client.

Joseph R. Hooper

Good Morning Joe,

Thanks for the BBBY LEAPS selection. My STC on the LEAPS triggered at

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$8.90 for a very nice 5% profit in one day. Every month, the CSE selection
service pays for itself many times over. I'm just starting with LEAPS, as I
mentioned in an email yesterday, and they are doing well.

I do have a question on when to start thinking about TSS'ng the LEAPS. I

have a couple that triggered the call sale, but have declined a bit. (WYE and
JNJ). Both are just outside of the "within 10% of the gtc, stc price". WYE, net
cost of the Jan 09 50 $7.85, gtc stc is $8.30, and trading at $7.10. JNJ Jan
09 65 net cost $8.20, stc $8.60, trading at $7.50. Both are up today, and I
realize it's a little too soon to think TSS. I've been in the positions about 14
days.

Thanks again for the BBBY and all of your help and support. I appreciate it.

Regards,

Cliff

Dear Cliff;

Thanks for your note. Yep, the covered call/LEAP selections pay for
themselves over and over each month. Regarding your LEAP and the TSS.

Check out what your return would be if you just exit the position. It might be
great on an annualized basis. Past that, just use the same TSS rules as you
would with a conventional covered call.

Hope this helps and thanks for your email.

Joseph R. Hooper

Dear Joseph;

I received this E-Mail but cannot find the attached Cow Report ? I am 58
years old and have the assets to retire early using your covered call methods
that I have heard about on your Sunday WRKO Boston radio shows.

I had hoped to attend your Boston seminar in Feb 2007 but I spent from 12-
11-06 to 1-30-07 in the hospital and it looks like it will be a few more months
of Kemo treatments before I will be able to attend.

I have purchased your new book and I am trying to learn what I can before
going to a seminar. I am looking forward recovering and being able to attend
your Boston seminar.

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Sincerely

Ted

Dear Ted;

Thanks for your email.

I have sent you the Cow Report again with the attachment.

Let us know when we can help you.

Thanks,

Joseph R. Hooper

Joe,

Would appreciate advise on a Leap position that I

entered back in 1/25/06.Bought TIF 1/08 35 at $9.20 and back in last Sept I
sold a 2/07 35 for $1.55.

Based on the present stock price it looks like I am

going to be called out and am needing to use the 20
cent rule but am unsure as to what month and strike to
use on this one.

Any help will be appreciated!!

Regards

Fred

Dear Fred;

Thanks for your question on this LEAP position.

Well, you have screwed this one up so bad it cannot even be described.

First, you constructed it completely wrong (when you finally sold a call) it was
constructed to lose. You have the wrong strikes the wrong LEAP years ..just

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everything is wrong....

Second you had about 8 months to sell and buy back calls after you
constructed the position which is way more than enough time to recover all
you cost in the position twice over...yet you did nothing...you did not even sell
a call for approx. 8 months after you bought the LEAP so you had no
management ability at all...such a screw up..

This stock has had a remarkable consistent chart pattern since you entered
the position..it is the poster child for a good LEAP position....

Now, two weeks before it is to expire or be called you are concerned......

The way it looks is that if exercised you are going to lose the premium you
paid for the LEAP of around 9.20 less the premium you received when you
sold the call of 1.55 so you net loss on the call out is 7.65 per share.

You can limit that if you buy back the call for 5.60 (pre-market price 2/8/07)
your buy back cost is 4.05. Sell the LEAP for 7.90.

Your loss is then about $5.35 based on pre-market prices today. That is
better than losing 7.65 and you have the funds to do it with the LEAP sale etc.

It is beyond be as to your thinking on this...it was born to lose and it did.

We stress all the time about proper construction..selling the

call...management etc. etc. etc.

Thanks,

Joseph R. Hooper

Joe,

I BTC the call but have not sold the LEAP.

The reasoning behind this is that TIF is in the high end of the chart and
should either turn over soon or keep going up.If I just sold the LEAP now then
I would just lose more money.

So I am looking at STO 8/07 45 for $1.45(current price).Along with the 1/08

35 LEAP this construction has a delta ratio of over 2 so if the stock keeps
going up I would get out on the delta.If it starts to go down then I will make
money tssing.

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Does this make sense or is my reasoning all screwed up?

Regards

Fred

Dear Fred;

You thinking is not screwed up now...but that doesn't make up for the
situation you got yourself into by not following any rules or anything. Don't for
get to add the buy back cost to the cost of your LEAP.

You can make it work by properly managing the TSS to reduce your cost and
in the end you will be ok, but the key is you have to do it and follow the rules.

Thanks for your reply.

Joseph R. Hooper

Hi , Joseph.

I'm really enjoying you'r training.

I'm in a Rack it's really beaten down and seems like it could go into the 20s.

Bought RACK for a new trade @ 16.94 wrote the feb 17.50 right after buying
the stock , then RACK ran up more than I thought it might, I'm looking at the
June 20 for a 9.74 % profit =ofmy RACK purchase , I'll take a 2% loss on the
Feb buyback, but RACK is at 17.75. which is .25 above my Feb strike. I know
I needed to sell the call at the top of a cycle but I was afraid the stock might
drop or stay stagnant , since then there's been some positive news on the
stock making it rise,
You'r expert thoughts on a June 20 or a better option would be appreciated
and helpfull to my learning ,

Thanks,

Dave

Dear David;

Thanks for your note.

-33-
What are you doing?

Leave it alone, it is doing exactly what it is supposed to do. You want to be

called out.

Just leave it alone. Quit trying to do whatever it is that you are doing. Don't
make this so complicated. Take the profit and don't worry about it.

Thanks,

Joseph R. Hooper

Dear Joe -

Thank you for being my CSE "Sensei." Yesterday, I GTC to STC FD @ 8.30
(FD c/b was 7.85 after the buyback of the Aug 07 call). It was executed
yesterday 10 minutes before the market closed. FD netted me 6.1% in 1 day,
2,226.5% annualized. Also, I GTC to STC BBBY @ 8.90 (BBBY c/b was 8.45
after the buyback of the Aug 07 call). It was executed a few minutes ago.
BBBY netted me 5.6% in 2 days, 1022% annualized. What a GREAT way to
start the day!

Arigato Gozaimasu (Thank you)!!!

Lucy.

Dear Lucy;

Your welcome. Just keep up the good work.

Thanks,

Joseph R. Hooper

Joe -

Just responding to my LUCY position (FD leaps-emailed 2/6/07)) that you

helped put me in before you emailed it out - It's just the greatest of all
positions to be in! For all those cows out there - sign up for the One to One
with Joe to feel confident of all the LUCY positions; and for all those non-
cows out there, become a client of CSE to experience being in these great
positions! LUCY :-) P.S.

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Joe will definitely get you there!

Thanks,

Lucy

Dear Lucy;

Well, you are just getting so good we have to start naming positions after you.
You are famous in Calif.

Talk on Thursday.

Thanks,

Joseph R. Hooper

Dear Andrew:

TRADE # 3:

BTO FD Jan 09 40 (VFDAH) @ 7.70, STO Aug 07 47.50 (FDHW) @ 1.05 for
a return of 15.79%. Time 10:31 am cst. This is an A position, this is a .10 rule
transaction, this is a LUCY position.

Thanks,

Joseph R. Hooper

Hi Joe,

What's a "LUCY" position? Can't find it in the manual or book.

Thanks,

Andrew

Dear Andrew;

Thanks for your email and question.

A "LUCY" LEAP position is a female leap constructed position.

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Thanks,

Joseph R. Hooper

Joe,

What is a LUCY position? It's probably something I should know, but I have
no idea!

BTW, things are still going well in month number six. I'm embarking on
covered Leaps this month.

Thanks for everything.

Regards,

Cliff

Dear Cliff;

Thanks for your question.

A "LUCY" LEAP position is one constructed with a "female" bias.

That is great on your success with the traditional covered calls.

Yep, it is time for LEAPS. Be sure to let us help you on these.

Thanks,

Joseph R. Hooper

Dear Joseph;

I have listened to your show a couple of times on the radio and as you
probably hear from everyone, am very impressed. Your show centers, as I
understand it, primarily on covered call techniques for those that have a stock
portfolio.

Does this system still have applications for those that do not have stock
portfolios? We are real estate developers and owners, and keep the majority
of capital tied up in real estate ventures, but I would like to use the system if it

-36-
can be conducted for folks that do not own stock portfolios. If it can be used,
are the monthly returns equal to what is usually represented?

I understand you are busy and truly appreciate your taking the time to
respond to this email.

THANKS

Rob

Dear Robert;

Thanks for your email. We appreciate you thoughts.

Yep, actually you will probably do better if you don't have a portfolio before
you start using our techniques. The reason for that is that we teach you how
and where to select the stocks that meet our criteria and have the the highest
returns when a call is sold.

We don't have to go back and help you with stocks that are down and are
thrown immediately into "management" to produce the returns.

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

Thanks,

Joseph R. Hooper

Joe,

I've been in three CC positions since November and am averaging 3.45%

through that time. I'm pleased with the way things have turned out.

That said, the reality of Covered Calls is not as "sure of a thing" as you and
Aaron describe it in the radio show. But of course such shows are to entice
listeners of the benefits, not the potential downside. Of course in the
seminars you have gone into detail on the realities of the ups and downs of
the Market and have set up ways to make money regardless of the market
direction.

My first position in November was in Rackable Systems. I went into the

position OTM and came out with only a 1.5% gain. Not great, and I certainly
learned from the experience. The other day I was checking out stocks that I

-37-
had owned and came across Rackable Systems chart online. The huge drop
a few weeks ago that was plotted out hit me like a splash of cold water. If I
had gotten nailed by the recent bottoming out of this stock during my first CC
experience, I would have come crying to you guys, or maybe yelling - or
maybe even run away. It just shows that nothing is for sure.

I need to know what happened to RACK and how we could avoid such a
situation, if possible. Was it due to an earnings announcement, or something
like that? The stock had been soaring. I'm sure you've been asked. What
advice would you give - just to hang in there it it happens? Or were there
clues along the way?

Thanks,

David

Dear David;

Thanks for your email and comments.

I think the down turn for RACK was an earnings statement. But it makes no
difference because you never know how a stock is going to react to any
announcement. Sometimes earnings statements are negative and the stock
goes up, sometimes it is great and they go down.

Witness AAPL when they announced the best earnings ever, the stock went
down. Our clients made out great by buying back calls sold.

Other investor nuts voluntary lost money. The next day the stock was higher
than the day before...our folks made out great again...the investment nuts got
to buy back in at the high price again...new concept...sell low...buy high....

You seem to be missing something here. That something is our techniques

are designed to produced consistent returns regardless of stock movements.
Stock go up and down..no one is a prophet but the street has never
addressed that issue...we have.

Your comments regarding "sure of a thing" are really not appropriate.

We never imply that. We say we have a technique that works if you know how
to use it. We teach the Seminars so folks will learn how to use it. Some can,
some cannot..that's life.

-38-
You are doing good so you obviously have it down. As a practical issue,
RACK has formed a new pattern and consistent returns of 4% to 5% are
being produced on original old higher prices. You would have not been
"nailed" (is that the same thing as the market "turning against you"?) by the
recent bottoming...some old street thinking still in your head...however, if you
had still owned the stock and you came to us we would have reminded you of
the proper use of the technique in that instance and you would be right back
to producing your returns even thought the stock had gone down in value.
Remember, if you were really confident in the use of our techniques, you
would not be worried about something like that happening...for it is going to
always do that and you are never going to be so smart as to only pick stocks
that go up in value..that is why management through the use of the covered
call is so important.

Thanks for your thoughts and we appreciate you as a client.

Joseph R. Hooper

Jennifer;

As a recent attendee, I am pleased with this opportunity. I intend on attending

more seminars in the Boston area because I really need the refresher. So
thanks for the opportunity. I will see you there. I have only been trading 1
month and so far so good. 4%, but I am going to do better next month. I made
some rookie mistakes last month - not to be repeated this month. Follow the
rules right Joeseph and be patient

Thanks Jennifer

John

Dear Joseph;

Thank you for the change and reinstating the old

policy. You folks are the best.

--Mike

Dear Mike;

Well, you welcome, thanks for being a good client.

-39-
Joseph R. Hooper

Dear Joe:

After the Jan semiar I requested your list of stocks. You did reply to my e-mail
but the list was not attached. Could you please resend it. I have transferred all
my accounts to Bxpress and have made a few trades which are working out
but would like to havye your list so I can establish a portfolio that Ican use to
TSS for income.

Thank you very much

Mike

Dear Mike;

Thanks for your note. Just sent it to you again. You should receive it just fine
with a yahoo address. If not, let me know and we will figure out some other
way for you to get it.

Keep us posted on how things go.

Thanks,

Joseph R. Hooper

Dear Joe,

Would you please include my name to the new CSE fund. Also, I am curious
as to who sets the option rates and their logic in their approach.

Thanks for your response.

Hugh

Dear Hugh;

Your on the list. Thanks for your interest.

Not sure about your comment "...I am curious as to who sets the option rates

-40-
and their logic in their approach."

If you will please elaborate, I will get back.

Thanks,

Joseph R. Hooper

Joe,

I just returned from the February Atlanta seminar that Mark taught. Just
wanted to let you know that I think it went great. Each time I go I pick up more
and more, and adding Mark's perspective was really nice.

This was Fred Jr.'s second seminar and he is getting a lot out of it. He is
doing virtual trading at this point with great returns. Please get him into this
month's scholarship drawing so hopefully he can turn that into real money ;-)

regards,

Fred

Dear Fred;

Thanks for your email. I am so pleased that Fred Jr. still enthusiastic about
our technique. He has a golden opportunity to control his financial future with
this knowledge.

Yep, every time one attends on of the Seminars for a second time, the gain
new knowledge. Just being around the others is so important.

I look forward to seeing you again soon. Want to drop in on the Atlanta
Seminar in the next month or so and visit with all of you.

Again, as usual, if you have a question or thought, please call or email. Tell
Fred Jr. hello and we are proud of him for "sticking" with it and learning this
stuff.

Thanks,

Joseph R. Hooper

-41-
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
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

Dear Joe,

I and my wife are old Yankees (early 70s), retired, not unlike Steve from
Massachusetts who was with you on this morning's broadcast on
WRKO,Boston. It was amazing how our investment situations and mindsets
are so much the same. It seemed that whatever you asked Steve, his answer
was virtually the same as mine would have been. I have a feeling there are
far more of us CSE fans in New England than you may think. It just takes a
little while to draw us out of the woodwork.

Unlike Steve, I started in early December having bought your book and
subscribed to the COW Report and the Toolbox. I'm following the rules with
eleven modest positions and encouraged with the way things are going. I
hope to eventually take one of the CSE Seminars (after you make me enough
money to pay you, of course!)and assuming continued success, expand my

-42-
CC Program to improve my family's retirement lifestyle.

Congratulations on developing a great system. I love working with it.

Sincerely,

Walter

Dear Walter;

Well, thanks for your email. We really appreciate your comments.

You will find that as time goes by and when you start attending the 2-Day
Intensive Seminars, you meet many, many others of your New England
friends that use our covered call techniques. It is a great group of folks.

I am glad that you are doing well. Please remember that you can call or email
when you have a question.

We appreciate you listening to our radio show on WRKO. After you have a
little more experience, we would like to have you on the show.

Please keep up posted.

Thanks,

Joseph R. Hooper

Hi Joe,

Just wanted to let you know how much I enjoyed my first seminar this
weekend.

Mark Dannenberg did a great job and was able to answer all questions in an
easy to understand way.

I had previously entered my first positions last month and am looking at

around 5% called or uncalled.

I'm sure I'll be in touch at some point with questions.

thanks

-43-
Steven

Dear Steven;

Well, thanks so much for your email. Yep, Mark is just great. You much
remember that he has been using our techniques for over 7 years so he is the
perfect person that can relate to new folks as well as those that have been
with us for long time.

Please keep us posted on how things go. Remember, if you need any help,
please call or email.

Thanks,

Joseph R. Hooper

Dear Joseph;

I own a little more than 20,000 shares of Home Depot stock and do not want
to sell my position at this time. Is it possible to utilize your system to generate
cash with these holdings and hold onto the stock?

Thanks,

Karen and Matthew

Dear Karen and Matthew;

Thanks for your note.

Yes, you can make a very good sum each month using our TSS for income
technique with your HD stock. You can produce returns of 5% per month
based on the higher of what you paid for the stock or the market price
whichever is greater. I don't know what you paid for the stock but assuming
5% of the present market price of $41.03, the monthly return would be around
$42,000 per month. That is $2.10 per share per month. $2.10 if 5% rounded
of the per share price at market of $41.03.

The TSS for income techniques does not involve selling your stock.

Hope this helps.

-44-
Thanks,

Joseph R. Hooper

Joseph;

Thanks for your response. I own the HD in a range from $8.11 up to 20.61 per
share.

I could not find anything on your site that defined the TSS; could you tell me
where to look for further definition or more information?

Thanks,

Karen

Dear Karen and Matthew;

Just check out the "2-Hour Introductory Seminar" at the top of the site. You
will see real examples of the TSS being used.

Thanks,

Joseph R. Hooper

Joe -

just a note to let you know that CSE has a very logical and systematic
approach to covered calls. Mark did an excellent job of presenting the
program. Vicki and I feel that we can increase our 401K and our portfolio. We
are planing on attending another seminar soon.

Art & Vicki

Dear Art;

Well, thanks for your nice comments. Mark is excellent and has so many
years using our techniques with never a loss except one time when he
violated a rule. Not bad.

Let us know when we can help you. Just call or email.

Thanks,

-45-
Joseph R. Hooper

Dear Joe,

I have read your book several times now and have come to appreciate your
strategies greatly. I have been trading options, covered calls for many years
and have enjoyed good returns. Your strategies will substantially increase my
profits. Thank you for the great information you and Aaron have provided. I
have selfish motive though for writing this email. I have developed a strategy
that I would like you to look at and to shoot holes in. Paper trading has been
very successful but I would like to get an experts opinion. would it be possible
for me to give you a call at your convenience and run it by you. I understand
that you are probably very busy. Please let me know by email if this is
possible.

Thank You,

Alain

Dear Alain;

Thanks for your note.

We appreciate your comments. Comments from those with experience with

covered calls are always valuable to us. Those that have experience and
discover our techniques generally increase their returns greatly.

Sure, this week will not be good, but give me a call next Monday.

Thanks,

Joseph R. Hooper

Dear Joe

I just attended the Feb 3/4 2 day in atlanta, thought it was great. Mark did
very well but you knew he would. I am virtual trading for the next few weeks to
get my feet wet, then will start for real.

Thanks for the program I havent been a trader before ,but common sense
tells me it works.

-46-
p.s. Is there anyway i could get a list of your stocks

thanks again

Troy

Dear Troy;

Well, thanks for your email!! We really appreciate your comments about the
Atlanta Seminar and particularly Marks expert guidance. He is the best.
'
I have sent the list of stocks by another email. If you don't receive them,
please let me know.

You are just starting. When you have any questions or thoughts, just call or
email.

Thanks,

Joseph R. Hooper

Joseph,

Just a short note to say my sons and I enjoyed your seminar in Los Angeles
this weekend. It was informative, practical and chuck full of techniques that
we can apply right away. Thank you for your professionalism and skill in
taking heavy matters and making them easy to understand.

Do the kind words above make me eligible for your list of 250 top stocks?

Thank you in advance,

Chris

Dear Chris;

Thanks for your note. Yep, the words were nice and I have sent the list by
another email. If you don't receive it, please let us know.

We certainly appreciate your comments. It was great having you and your
sons attend our Seminar.

-47-
Hope to see you again in LA soon.

Thanks,

Joseph R. Hooper

Hi Joe,

I have a few simple questions.

First, when and where will the next LEAPS weekend be (after the first one on
the 17th and 18th)? I took the CC in October and am very much looking
forward to the LEAPS. I have mostly been trading LEAPS so far and it's going
well (except that I had almost 50% of my portfolio in Sandisk CC two days
before the BIG move in October and a couple LEAPS

I'm waiting for cycles after buying back the call on the .10 rule that then did
Sandisk-esque dives, SII, HAL, AEM). Despite that $14ish SNDK drop, my
account is now break even and I am TSS'ing SNDK at every opportunity I can
catch. I have spread my exposure out much more since that lesson and I'm
am climbing back sure and steady at almost a 9% clip per month.

Next, I am interested in receiving your list of 300 some odd stocks and getting
put on the "New Fund" list.

Also, I am enjoying this method of investing a lot. It also fits in with our current
lifestyle as my wife, three children and I are RV'ing around the country for the
better part of a year (finishing up around April) after selling a business and
some real estate. I can watch things all day if I want or I can just review and
adjust at night. Timing entries vary but hasn't affected overall performance.

Anyway, when we settle down, I could see doing this much more full time. Is
there any chance you would be willing to help me connect with Mark
Strickland as I have a few questions should I decide to pursue a similar path
as his once we land. We are moving to Colorado and I think he is in
California.

Lastly, I'm up to 184 pages in my manual. Can I get the rest of them sent to
me?

Thanks for your time and consideration...

Troy

-48-
Dear Troy;

Thanks for your email. I checked out the travel blog, you have a fine look
family and group of friends!!

Well, sounds as if you are just doing great. It always best to learn about the
value of diversification first hand. Bet you will stay well diversified in the
future. You are learning that the covered call technique can bring you back
from a bad stock in a rather short time and along the way, you have money to
spend..not just a brokers statement to look at...something you cannot spend
or compound.

You are right, there is no better investment technique on the face of the earth.
You don't speculate so you don't have to be peering at a screen all day which
means you can enjoy life as you are doing.

Regarding your comments about our activity, we certainly would consider

speaking to you when the time is right. We only consider folks that are clients
and that have been using our techniques. Let's talk when you get all settled
back to the "real" world....maybe you don't want to do that after this journey....

Again, thanks for your email. We appreciate your comments and we

appreciate you as a client.

Be safe on the road.

Thanks,

Joseph R. Hooper

Dear Troy;

Forgot, we will get the pages off to you also. We need an address to send
them.

Thanks,

Joseph R. Hooper

For a great learning experience in LA this past weekend.

I just love the way you both present -- it really is great to know this 'financial"

-49-
management and wealth creation plan is doable by yourself..(that me) . Very
exciting stuff

I am off the virtual trade for a bit, then join the coaching group ....what a way
to learn as you go!!

Please don't forget to send over the favorite stock list..

very best,

Richard

Dear Richard;

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

Thanks so much for your comments. Remember if you have any questions or
thoughts, just call or email.

Let us know when we can help you and we look forward to seeing you in LA
again soon.

Thanks,

Joseph R. Hooper

Mr Hooper,

my physician mentioned your website to me- he has just started with you- and
I obviously checked it out and listened to the introductory audio. It was very
fascinating. I have been trading for about 5 yrs, and have done covered calls.
As you say, it is extremely easy to make money when the stock rises and
your option is assigned. However, I have lost money when the stock plunged,
and really creates a mindset, where you do not want to trade again.

I am going to be 60 yrs old soon, am divorced, and putting 2 boys thru

college. My retirement account is obviously not large enough for me to retire
within 5-10 yrs (if I am lucky perhaps I can). How much money would one
need to start. How can one go about trading with his 401K? I am sorry, I am
trying not to be a windbag, but I am apprehensive about spending 3M on a
seminar, (money which I find hard to come by, due to many bills) but hearing

-50-
the potential makes me want to try. Is it time consuming? Or relatively easy
as you say.

I am not a genius, but far from a fool.

I would appreciate a response if possible. You sound like an honest, caring

man-so please can you give me an honest answer. I would certainly like to
earn3-5% per month-for the next 5-10 yrs. (or more)

My children would like that also I suppose.

Thank you for your time

Jeff

Dear Jeff;

Thanks for your email. We appreciate your doctor recommending our

technique. Please tell him thanks.

Let's just look at your questions:

Question #1: "How much money would one need to start."

Answer; We have clients start with $3,000.00 and up. The commissions have
become so small, you can compound small amounts into great sums over
relative short time periods. For example, $10,000 will grow into around
$3,000,000 in only ten years when averaging 4% to 5% per month.

Question #2: "How can one go about trading with his 401K?"

Answer: You can use all of our techniques IRA and 401K accounts. If you do
not have control of your 401K it is unlikely that you can direct the investments.
If you do have control of the 401K, no problem. If you are no longer working
for the company where you had the 401K, just convert it to an IRA and you in
business.

Question #3: "Is it time consuming?"

Answer: For traditional covered calls you might plan on spending about 2
hours a week at most.

I hope I have answered your questions, if not, let's try again.

-51-
Thanks,

Joseph R. Hooper

Dear Joseph;

Recently my wife was on Deal or No Deal and we have some money to work
with...currently everything is in E*Trade...can I do covered calls and the LEAP
system within my current E*Trade account.

Thanks,

Lantz

Dear Lantz;

Well congrats to your wife!! Sure, E-Trade is fine, they were one of my early
brokers and I still use them.

Hope this helps,

Joseph R. Hooper

Hi Joe,

My husband, Bill, and I enjoyed your LA seminar so much yesterday and the
day before. We had been to the January one in LA, but being on the wrong
side of the room to better hear your softer, Southern-accented voice, left us at
a slight loss for comprehension.

The past two days we were smart and changed sides, which made all the
difference in the world to our learning level and enjoyment.

Would you please email us your list of dependable stocks? Perhaps we'll
have a portfolio containing some of them up and running before we return for
another seminar. Our accounts are established, but we're only virtual trading
while our retirement accounts transfer.

Thanks for an enjoyable weekend.

Sharon

-52-
Dear Sharon;

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

Thanks so much for your nice comments. Aaron and I certainly enjoy the LA
Seminar. You folks are just great. I am glad that you were in a better place
with your seats this time. Remember, when you have any questions or
thoughts, please just call or email.

Thanks,

Joseph R. Hooper

Dear Joe,

I sent a previous email that went unresponded. I attended the 2 day Chicago
sem in Chicago in Nov. and have purchased your book.

I would appreciate your listing of 200 stocks.

Thank you.

Roland

Dear Roland;

Thanks for attending our Seminar in Chicago. Mark does a super job!!

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

Thanks,

Joseph R. Hooper

Hi Joe,

Bad weather did not deter the COW Girls Thursday night! We had 10 ladies
present and 3 others that expressed commitment but were unable to attend

-53-
our first meeting. We have agreed to meet monthly during the week of the
first Friday.

This will give us 2 weeks prior to the 3rd Friday expiration to explore
defensive moves needed for a problem position. The participants will rotate
hosting each meeting and the hostess will determine the time and date. This
gives us maximum flexibility and since we are scattered all over the Metroplex
this just seemed fair.

The meetings will be a combined book study/practical application session.

Members will bring their challenging positions to the group and we will look at
the chart and the data and try to apply the rules.

I heard you mention us on the radio this morning. I don't think the ladies in
this group would be willing to wear little ears. Now if you want to have a
special diamond studded lapel pin shaped like a cowgirl boot... we can talk!
The ladies are looking forward to your attending our next meeting. When we
get the time and date worked out.

I will let you know.

Clarenda

Dear Clarenda;

Thanks so much for your update email. I think you all have done an excellent
job of organizing the group. We really support what you are doing and will
help anytime you ask.

Aaron and I will most definitely attend you next meeting if you want.

We do not travel on Thursday so that will not be a problem for us.

No ears..huh.....well back to the drawing board....

Talk later,

Joseph R. Hooper

Mr. Hooper,

I'm entering my first TSS and would like to clarify a point. I understand the
rule regarding entering a TSS only if the price is in the top 75% of the

-54-
channel. As I recall from the Dallas seminar, it is also best if the price has
begun to "turn over". Is this correct?

You also pointed out in several examples that there were several buy and sell
points along the way. Where I'm not clear is once you have entered a TSS for
the first time, should you buy and sell the call each time the price makes a
definite turn in direction, or should you only sell after the price once again
reaches the top 75% of the channel?

Thanks for you patience in clearing this up for me.

Bill

Dear Bill;

Thanks for your excellent questions. It is the understanding of these two

questions that mean the difference between making the consistent 5% returns
and not making them.

Let's just look at your questions:

Question #1: "I understand the rule regarding entering a TSS only if the price
is in the top 75% of the channel."

Answer: That is the proper understanding and is important when establishing

a TSS position.

Question #2: "As I recall from the Dallas seminar, it is also best if the price
has begun to "turn over". Is this correct?"

Answer: That is correct. This assures the bias is for the stock to continue
down allowing for a profitable buy back of the call.

Question #3: "Where I'm not clear is once you have entered a TSS for the first
time, should you buy and sell the call each time the price makes a definite
turn in direction, or should you only sell after the price once again reaches the
top 75% of the channel."

Answer: Once you have entered the position, you then need to buy back
when the stock makes a "V" shape for now the bias is for the stock to go back
up. If you don't buy back at this point, it is possible that the stock will continue
up with the highs getting higher and the lows getting higher and you will never
buy back the call for a gain.

-55-
Ultimately you would have to make an "adjustment" buy back and then
recover that buy back cost with a "RJFC" (redemption Jay's Fast Cash)
execution.

It is not as important that you miss a "^" at the top for this will only result in
your earning your buy back returns slower, but will not run into the same
situation as missing a "V" buy back. Once you are into the TSS, you don't
need to apply the 75% rule anymore only on when entering a TSS.

Hope all this makes sense, if not, let's try again.

Thanks,

Joseph R. Hooper

Joseph;

The fog has lifted! Thanks!

But your reply brings another question. I remember JFC along with "stretch"
and double" from the seminar, but I missed "redempton JFC"

Is this new or was I sleeping? Can you elaborate?

Bill

Dear Bill;

Neither, we have not started teaching it as of this moment. You are a first on
this information.

Thanks,

Joseph R. Hooper

Joe:

I am in AMD at a basis of 21. This is some investment stock that I had before
starting the CSE. I have sold near term calls against it on the way down and
have received about $1.2 in premium, essentially doing a JFC. I should have
TSS'ed it! Do you think I should TSS it today? It is not in the top of its
channel but it is plummeting. It has dropped 2.6% today.

-56-
tks

Dennis

Dear Dennis;

Thanks for your note.

Well, If this were mine, I would TSS. As you suspect, that is what you should
have been doing all the time. If it turns around, we just use one of the other
techniques to continue our returns. Anytime a stock is trending down, you
can't mess up with a TSS even if you sell the call at all the wrong points.

The channel is rather narrow so I would take the buy backs in smaller
amounts.

Anyhow, that is what I would do.

Thanks,

Joseph R. Hooper

Hi Joseph,

My name is Ken and I attended the Atlanta seminar on CSE this past
weekend. The speaker, Mark, did an excellent job and the seminar was very
informative. I have decided to pursue this method of investing and have
already been in contact with Greg at Broker's Express to set up a virtual
account. I will be taking in a second seminar in several months after I have
some time doing the virtual trading.

Also, I understand that you will send to seminar graduates your personal
stock picks upon request. I would like to request this if I may. My email
address is: xxxxxxxxxxxxxxxxxxx

Again Joseph, thank you for giving me hope and confidence that I can yet
provide for my retirement through the CSE vehicle.

Sincerely,

Ken

-57-
Dear Ken;

Thanks for your email. Thanks also for attending the 2-Day Intensive in
Atlanta. Mark is such a great leader for that Seminar. He has been using our
techniques for almost seven years making consistent returns.

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

When you have a thought or question, please call or email. You are taking the
right approach with the virtual trading account at brokersXpress. You will find
Greg very helpful for he is an expert on our technique and knows all our
trades.

Again, thanks for being a client.

Joseph R. Hooper

Mr. Hooper,

On your example leaps account you show a position in BA stock itself. I

thought the idea of using leaps is to lower your cost of the stock ownership in
a covered call account. Did this account use a combination of stock
ownership and leaps? My understanding of the account is to buy a leap and
sell a near term call against it. Correct?

Bill

Dear Bill;

Thanks for your note. He had a couple of stocks in there. Actually, those
pulled his return down.

The vast majority of the positions are leaps.

Thanks,

Joseph R. Hooper

Joseph--

In last COW report, you mentioned a technique called SJFC.

I have learned JFC from the book and two seminars,

-58-
but have not heartd of SJFC.

In Boston, you described "Double Jays," but not SJFC.

Could you clarify?

Thanks

Steve

Dear Steve;

Yep, we add new things all the time. If you will listen to the next on-line 2-Day
Intensive from Dallas, you will learn all about it.

Also, you will be getting paper work for your Seminar Manual on the
technique. It is not ready to go out right now but will be soon.

Since you are going to be in Dallas at the LEAPS Seminar in a week or two,
just ask me, I will explain it.

Look forward to seeing you on the 17th.

Thanks,

Joseph R. Hooper

Joesph:

thanks. I will wait to see you in Dallas @ LEAPS

I am afraid I cant devote another whole 2 days to listen to the Dallas
intensive.

I wish i could.

Steve

Dear Joe;

Thank you for a great weekend. The information you and Aaron deliver is
terrific. We are very happy to have the opportunity to get it from the 'Master".
Your style is unique, informative and reassuring. Thank you for the help with
CMED. I would have "stopped lost" myself into a guaranteed loss of 8% with

-59-
my old trading rule. Now I will TSS for income until this position is positive.
Wow what a concept.

We look forward to the next time you are in town. The sunshine sure beat the
snow and ice of Cowtown. Please send your stock list. We are so impressed
with the repeat attendees. A wealth of trading experience. They all agreed
you fellas are the best. Amazing actually.

Until next time,

best regards,

Mike and Patty

Dear Mike and Patty;

Well, what a nice email!! Thanks so much. It was just great out there in LA
and out of the cold and rain here in Ft. Worth.

Aaron and I really enjoy doing the LA Seminar for you guys are great.

Your sure welcome on CMED. Yep, real green cash is better any time than a
loss due to a stop loss order!!

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

Again, thanks, Remember when you have any questions or thoughts, please
call or email.

Thanks,

Joseph R. Hooper

Joe,

I was at the recent seminar in Dallas and truly enjoyed the entire experience.
I look forward to many rewarding years compounding my stock earnings.

I have a question regarding the option market in the "after hours" trading
period. I understood you to say that most if not all options can be traded for
about 15 minutes after the market closes. Is that correct? I attempted to
place an option order with my broker at 3:08 CST, 8 minutes after the market

-60-
closed, and was only able to place a GTC order at a limit price which did not
execute.

Thanks for your help!

Paul

Dear Paul;

Thanks for your email and comments. We really appreciate your attending our
Seminar in Dallas and hope to see you back many times.

Regarding the question, that is 5 min not 15. Sorry for the misunderstanding.

Let me know when we can help you.

Thanks,

Joseph R. Hooper

Joseph;

Good Morning Joe-

I need a little advice if you don't mind.

1. After the last seminar, you said to JFC the stock IIG which we did on 1/29--
Feb 07 22.50 for $.90 (the stock was $19.84.) The stock is now $22.51 (our
cost is $25.21) but using the 20 cent rule it seems that we are in no danger of
being called out for a negative return. Is that correct even though the stock is
above the strike price?

2. We have another situation with CHB where we did a TSS

on 1/24 doing Apr 07 at $7.50 for $1.30. The stock now seems to be going
sideways and we have a BTC at $.80 but the stock is trading at $8.27(cost
$9.62)and and the 20 cent rule says we will not be called out since the
amount is $.58. Will this hold true even this close?

Regards,

Scott

-61-
Dear Scott;

Thanks for your email and questions.

Regarding IIG, just BTC the Feb 07 22.50 @.50 for a profit on the buy back of
.40. This prices were at 10:49 am cst. 1/7/07. Just following rules, it always
works.

Regarding CHB, the stock is at resistance and this not the time to BTC. Yes,
you have a profit in the buy back but it will be much greater when you BTC at
support. Just sell on the highs and buy back at support.

You have a basic misunderstanding of the .20 rule. It does not indicate if you
will be called out on the third Friday. If you are ITM you will be called out. The
.20 rule tells you if you should wait to the third Friday to BTC. If you do, you
get the best buyback price since there is no time value left. If the rule
indicates a value less than .20 you are in danger of immediate call out and
should buy back the call now using the TSS technique for defense. But if you
are in the money, you will be called out.

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

Thanks,

Joseph R. Hooper

Thanks for the info-

But...if you TSS lets say in Feb 07 with a Jan 08 strike which is lower than the
market price could you be called out in Feb or would the intrinsic value of the
stock with the high premium keep it from being called out. Would an 08 be
called out now or just in Jan 08. We have several TSS that we have not been
able to buy back yet.

Scott

Dear Scott;

Thanks for your reply. We don't waste time with "what if's". Sorry

Thanks,

Joseph R. Hooper

-62-
Hi Joseph, or Tiffany -

could you please let me know who won the latest (Jan) $5K scholarship? I
could not listen this past weekend to the radio shows, but had hoped I'd get
an email from you w/ the announcement.

I attended the January Boston 2-day intensive with my wife Linda & 18 year-
old son Jeremy, who registered for the scholarship draw.

Thanks & Regards,

Ancora Imparo.

Russ

Russ,

They actually announce it this weekend on the radio show, so try listening
then!

Thanks,

Tiffany

Dear Russ;

Thanks for your note. The new scholarship precipitant is Aaron Chouravong
from Austin , Texas . He is for January.

Thanks,

Joseph R. Hooper

Thanks Joseph for this heads up & especially thanks for investing in the
monthly scholarship award program. It is an inspiration to parents &
teenagers alike.

Ancora Imparo.

Russ

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Dear Russ;

Your sure welcome. We really appreciate you and you family for participating
in our Seminars.

The scholarship program is important for two reasons. First, these kids are
doing well and learning how to grow wealth and taking care of their financial
future. Second, their parents are seeing that old past things learned from the
street are just rubbish. These kids don't know that old stuff and they are
earning 5% per month, their parents do know all that old stuff and they have a
more difficult time. So the parents benefit for they see the light much quicker.

Again, thanks for being a client.

Joseph R. Hooper

Hi Joseph,

Just bought your book last Thursday, I can't seem to put it down! Fantastic
read.

I have a couple of simple query regarding some terminology in the book, hope
this is the right place to be asking this question, if not please redirect by
queries.

What is meant by ;

"..near month + 1 expiration.." - Page 106

"..second to last expiration.." - Page 78

Thank.

Siew - Malaysia

Dear Siew;

Thanks for your email and questions. First, thank you for buying our book. We
certainly appreciate your comments. When you have any question, please
just email or call.

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Regarding your question on "..near month + 1 expiration", this relates to a
CPR transaction it means that you look at the "present" call first if that does
not work you look at the next month out.

Regarding your question on "..second to last expiration" this relates to the

TSS technique...The second to last expiration means the call (be it a regular
call or a LEAP) before the last one listed on the call chart. For instance, the
call options available on the stock CAT are presently Feb 07, Mar 07, May 07,
Aug 07, Jan 08 and Jan 09. The Jan 08 is the "second" to last expiration. If
there were only three expiration's such as Feb 07, May 07 and Aug 07, then
May 07 would be the "second" to last expiration.

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

Thanks,

Joseph R. Hooper

Dear Joseph,

Thank you, now I'm cleared on that.

Another query;

When you said in Page 81, Point 5- "..move into the money three or four
contracts."

Did you meant moving down in strike price?

I registered for the 2 hour introduction show online, but it seems I have dial up
a toll-free line to hear the audio. Is that the only way I can get the audio?

Thank you in advance.

Regards

Siew

Dear Siew;

Good to hear from you.

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Yes, we mean to move down in strike price.

Regarding the dial up line, that is designed so you can dial in free from
anywhere in the world. You might write Aaron on that and he will tell you
exactly how to use it. That is the only way to get the audio.

Thanks,

Joseph R. Hooper

Joe,

I will be conducting a training class at work all day Tuesday and Thursday of
this week, so will have to cancel our 1:1 sessions. I hope we can resume on
Tuesday Feb 13.

I'm not sure if I will be able to join the live broadcast on Wednesday morning.
I have two stretch JFC's:

OVTI Feb 07 $22.50

IIT Feb 07 $12.50

If either one reaches the strike price this week, how likely is it that I would get
called out before next Friday?

Joan

Dear Joan;

Ok on the Seminar. You need to check the prices you gave for OVTI and IIT. I
think that you need to buy them back and TSS but can't tell from the
information you gave me.

Thanks,

Joseph R. Hooper

Hello Joe,

I have a situation with IIG, and I would like your advice. I bought IIG at 26.55
on Jan 9 and sold a CC, then bought it back Jan 17 for $195 profit.

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Then after two additional secondard sales netting $600 and $150 my total
premium so far is $945. IIG started back up but then rolled over and I sold an
Apr 07 17.5 TSS. Now the stock has turned back up, trading today at $21.75.
This leaves me with a loss position on the stock of -$1440 (partially offset by
the $950 premiums) and an additional loss position of $390 on the TSS. I
probably did the TSS wrong, but I'm not sure what to do next. I considered
SSR, but I'm not in a profitable position on the stock.

I took the 2-day intensive in Dec. and still pretty new at this.

However most of my positions have worked out well so far.

Appreciate your assistance.

Jerry

Dear Jerry;

How much did you sell April 07 17.50 for?

Thanks,

Joseph R. Hooper

Joseph;

I sold 3 April 07 17.50 calls for $1290 and I have 300 shares of IIG.

thanks,

Jerry

Dear Jerry;

Well, it seems that some where along the way you missed a buy back on the
new Apr. 07 17.50 call. It was not sold at the correct place on the chart or you
missed a buy back. The reason for this conclusion is that the stock has gone
almost straight up the last couple of days and you are only 1.90 behind in
buying back the stock.

I would look for the stock to move down at this point in it's upward trend. I
would buy back the call on the next low or "v" and if I don't have a profit in the
buy back the loss will be very small. I would just add that to the cost of the

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stock and get back on the right side of the chart to continue earning returns.

You are doing good and earnings good returns ($945.00) to date for a return
of 13.46% in just a little over a month. Not bad. Just need to clean up this one
and get back on the right end of the chart. Wait for the stock to come down,
make the buy back and you are in excellent shape.

Again, Jerry, this just goes go show how forgiving and profitable the covered
call technique really is. You don't have to do things perfect all the time, just
some of the time and you win. Lots better than selling for losses all the time.

Thanks for being a client.

Joseph R. Hooper

Good Morning Joe...

What is meant by an "A Position"?

Thank you.

Chuck

Dear Chuck:

An "A" position is a new position. Look a little lower in the email and you will
find the definition for various positions.

Thanks,

Joseph R. Hooper

Thanks Joe...

Chuck

Hi Joe,

I own OTEX at a cost basis of 21.92. In November I sold the Feb 12.5 at 5.6.
At this time the ask price for the Feb 12.5 is 6.6 and OTEX is trading at 18.76
so I'm okay on the 20 cent rule at the moment

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(12.5 + 6.6 - 18.76 = .34).

Since I know that I will have to roll this out in the next two weeks, should I do
this while OTEX is trading at the bottom of the current range, or just wait until
the 20 cent rule forces me to roll out?

Also, the only open interest on the Feb 12.5 calls are the 10 contracts that I
sold in November. Should I have any concern about manipulation of the ask
price - that is, a market maker dropping the ask by 30 cents and exercising
my 12.5 call?

Thanks,

Wayne

Dear Wayne;

What date in November did you sell the call?

Thanks,

Joseph R. Hooper

Hi Joe,

On 8-3-2006 I sold the Nov 06 12.5 at 2.00. On 10-31-2006, I was at 20

cents on the 20 cent rule so I bought back the Nov 06 12.5 at 5.6 and sold the
Feb 07 12.5 at 5.6.

Since there is no May 07 12.5, I was also wondering if after buying back the
Feb 07 12.5 I should wait until the stock is back to the top of the current
trading range to sell the next call - and which strike would be the best to
sell? My net option premiums prior to 8-3-2006 were 2.1.

Thank you for your help.

Wayne

Dear Wayne;

If this were mine, I would just go ahead and buy back the present call. You
buy back loss will be about $1.00. Add that to the price of the stock.

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Now, you have some excellent strikes in May and August. The stock has
been trending up for a long time now. It is presently on support. I would buy
back call now and then sell a new May call when the stock goes up to
resistance. You will then be on the correct side of the cycle and should start
increasing you returns. It won't be long before you will be closing out the
stock. You might also check our the CPR techniques on this one.

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

Thanks,

Joseph R. Hooper

Joe, I may have typed your email incorrectly the first time around.

If you received this twice, I apologize for the clutter.

I just need to know if what I'm saying below is correct.

The prices, of course, are different today than they were last week.

However, if the analysis is sound, then looking at today's numbers, while the
$80 call gives a strike plus premium of $96.10, the $85 call meets the $96.30
requirement at $96.60. It is out-of-the money though.

Recommendations?

Aaron, Tiffany suggested I copy you, so if you happen to get to this before
Joe responds, please advise.

Best Regards,

Rick.

Dear Rick;

Thanks for your note and sorry I did not get it but we have been out of town
etc.

Your thinking is correct and to prove it, today, you would be making a buy
back if not a few days ago.

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You would have to take the buy backs in smaller increments because of the
shallow depth of the cycle, but it still works just the same. If you did not sell
the call, don't do it now until the stock goes back up to resistance.

Hope this helps, if not, let look at it again.

Thanks,

Joseph R. Hooper

Thanks, Joe.

Best Regards,

Rick.

Dear Sirs,
I want to sign up for your Feb. 23-24 Online Seminar but I have a problem. I
wil not be able to watch the broadcast on Sunday. I have invested for a long
time and am quite knowledgeable about options.

Will I be able to learn much of the material on my own or will I miss too much
material to digest it all if I cannot see the Sunday presentation?

Thank you,

Don

Dear Don;

Thanks for your email. In all honesty, you need to attend both days.

Thanks,

Joseph R. Hooper

Hello,

I've been trying to get into the suggested SINA LEAPS trade this morning, so
far without success. I'm also concerned about getting into the LEAPS and

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then not being able to get the suggested price for the nearer Sept Call.

Is it appropriate to use a spread price as my criteria instead of legging in?

Thanks

Harold

Dear Harold;

Have you don any LEAPS before? It should not be a problem. The prices are
still within a dime of what we did.

Thanks,

Joseph R. Hooper

Hello Again,

Yes, but just a few. I might get in using a spread to get the $1.20, but so far
have not been filled on my attempt to buy the Jan09 35 for 8.30.

Harold

Dear Harold;

It is up to 8.50 now. It was 8.40 when I first got your email. I would put in to
BTO at 8.40, think you will get it. The call is still at 1.20.

Thanks,

Joseph R. Hooper

Morning Joseph ...

Have a position in Suncor, several hundred shares .. cost basis about 50% of
current value ...

Want to TSS for income and not get called out ..

This will be my first TSS trade for income .

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SU is in the upper 25% and satisfies selling high rule ..

Looking at Jan/08 ... YYUAL 18.30 with a delta of .82 ...

Object is to make 4 to 5% and re-purchase the contract ...

Am I on the right track?

Thanks;

Dick

Dick;

Thanks for your note.

SU is not at the proper place on the chart to TSS.

Your selection of the Jan 08 60 @ 17.70 is good but not now. When the stock
gets up to resistance you will even get a higher premium. You will not have
any problem earning 4 to 5% on this stock.

You need to look at a six month chart. You will see that the stock is on
support. When doing TSSing you look at a closed in chart for you are living
and breathing on contemporary ups and downs.

Thanks,

Joseph R. Hooper

Hi Joe,

I am working hard to master charts and I have been trying to work the AEM
chart to see the pattern where it is currently trading in the lower 25% of the 12
month price channel. The way I am looking at the 12 month chart is that AEM
is in the upper 50% channel currently. Am I missing something?

Thanks,

John

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Dear John;

Thanks for your question. You are trying to be a little to exact. If you look at
the 2 year chart, it is right on the line. The shorter range chart is more
obvious. Remember, you don't have to be exact when using our technique,
just there or about as Aaron says.

Hope this helps.

Thanks,

Joseph R. Hooper

Joe,

If I wanted to get into an ETF and hold on to it while selling covered calls
would QQQQ be a good choice? It looks like it is in a good position on the
chart. Or should I simply treat it like any other covered call and hope to get
called out at the end of the month?

Wondering if it is a good way to diversify.

thanks,

JIm

Dear Jim;

Thanks for your question on QQQQ.

First, it needs to come down to support before creating a new position that
would be around 43.60. I would just enter it and get out in the regular way at
this point. If you don't get called out,then you can continue to manage it for
the long term if you want.

To enter the position with the intent of managing it for the long term at this
time will delay your returns. Now, if you already owned the stock, you would
just start selling calls at the resistance point and buying them back when they
go down over and over etc.

In other words, if you enter it now, you have to wait for the stock to reach
resistance before selling a call. You would do that so the bias would be for the

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stock to go down and you could buy it back for a gain. This is counter to the
rules.

Hope this makes since, if not, let's try again.

Thanks,

Joseph R. Hooper

Dear Joseph;

Makes good sense thanks for the quick reply.

Jim

Joe:

Is the JFC technique applicable only to stock or positions currently in one's

portfolio, or can it be applied to new positions opened in the last two weeks of
the options month specifically to apply the JFC?

Regards,

Bob

Dear Bob;

Thanks for your note.

The intent of the JFC is to pick up "free" cash after you have done a BTC for
a good return on a TSS. Your returns will be lower than if you did a regular
call for the next month. We never look at the returns on a JFC for it is just free
money while waiting to TSS again.

You can do it but your returns will be very low.

Thanks,

Joseph R. Hooper

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Hi Joe,

Thanks for sending the Master Series DVDs - they should be here any day,
and I certainly need the help!

I had a couple of positions at the seminar a couple of weeks ago that you
suggested to JFC. One is now in the money (IIG) and another is very close
(AVR). Should I wait until next Friday to buy them back, or should I do
something now?

Thanks for your help,

Sabrina

Dear Sabrina;

Ok, we just talked on the phone. As I expressed it was quicker and easier to
discuss the two positions on the phone for I wanted to give a in dept
explanation of how to look at these positions.

Talk later,

Joseph R. Hooper

Joseph

Thanks for your awesome web site. I have signed up for the free month and
will be attending your seminar in Los angeles. I was looking at your
recommendation for today, ACTS. In drawing trend lines, if I draw from
August to February it is a sideways trend and now in the bottom 25%.
However if I draw from mid November to February it is a downward trend, in
which case we should not buy. What is the correct perspective?

Thanks for your help.

Wayne

Dear Wayne;

Thanks for your note. Super about your plans to attend the Seminar in LA.
That is a great Seminar with lots of new and experienced folks. Great
education from the others that have been using our techniques for some time.

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Always try to look at a year chart. I think the Aug to Feb is the correct view. I
agree with you.

Hope to see you soon in LA.

Thanks,

Joseph R. Hooper

Hi Joe,

By mistake, I went naked today at the closing bell 14 contracts for the IWM
Jan08 64 calls. I intended to buy back the 14 calls that I TSS'ed a week ago
and close out my stock position with a nice profit (my cost basis for the stock
is $72). But, instead of buying the calls, I sold 14 more calls.stupid me. Now
I have 28 calls and only 1400 shares. Since IWM looks to be at a high point
in the price channel, should I buy the 14 contracts that I went naked on today
immediately tomorrow morning regardless of price? Or should I just take a
deep breath and wait for the stock to come down. Any thoughts?

Thanks,

John

Dear John;

Well, can't tell because you did not list the prices you sold and bought for. The
stock is at resistance and the bias is for it to come down. If you will get me
those prices, I will give another thought.

Thanks,

Joseph R. Hooper

Joseph or Aaron,

11/21 bought CWTR for $30.41 sold $30 call at 1.95 6.41 % not called out.
Since then the stock seems to be bottoming out. We looked at CPR, however
it doesn't seem to make sense. Would like to earn money on the way down,
yet it hasn't cycled up for a TSS. Do we just wait this one out?

Thank you for sharing your thoughts on this one.

Marta

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Dear Marta;

Have you bought your call back for a gain? The stock has had two TSS
opportunities in the last week or so. However, if you have not BTC the call for
a gain, you can't do it.

Thanks,

Joseph R. Hooper

Joseph/Aaron,

I've been trying to understand the Managed CC Selections overview-

completed and open positions. Today VPHM was sold. But it has not been in
the open positions section. I also could not find that it was purchased on
060315. Should it have been in the Open Positions section of Managed CC
Positions overview?

Help me understand what happened, please.

GBTY,

Ed

Dear Ed;

The VPHM was a covered call/LEAP selection, not a managed trade.

Thanks,

Joseph R. Hooper

Sirs,

I have recently taken the 2-day intensive and am still learning all the rules. I
conducted a series of virtual trades the other day and wanted to know how I
faired. There are a few calls that I sold that are showing as a negative. I am
unsure of the implications of this as I used the CC selections and believe I
followed the rules. I am attaching the spread sheet I downloaded from
brokersexpress. Thank you for your critique.

Regards,

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Peter

Dear Pete;

Thanks for your note and thanks for attending the 2-Day Intensive.

When you sell a call it always shows up as a negative on the brokerage

statement. Really confusing but dates back to the old days of accounting for
uncovered calls. When you sold the call the cash went into you account. As
the stock goes up and down the red negative figure will also go up and down
but they don't add or take cash from your account.

It is not something to worry about. When you enter a position, just write down
what you paid for the stock/LEAP and what you received in premium when
you sold the call and then forget the brokerage statement.

Thanks,

Joseph R. Hooper

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