Joseph Hooper, the man who started Compound Stock Earnings, has found financial success with the covered call method. Hooper is no neophyte to the world of stocks and investments. Before he started the training company, he worked as a broker and even owned a bank. His two decade experience in the financial industry, plus the success he found with covered calls, gave him the ability to start the company.

Just because one financial technique worked for one person doesn’t mean it will work for you, right? That is not necessarily the case. Most people who learn the covered call method from Hooper report earnings of at least 3 percent each month from their portfolio.

All About Covered Calls

Covered calls differ considerably from standard investor behavior. Some investors like to buy and sell stocks rapidly. They purchase a stock, and then they sell it off when the price rises.

With covered calls, you do not sell or buy stocks. Instead you have stocks that you think will keep a relatively consistent price. You hold onto the stocks and write call options on them. A call option means you agree to sell the stock to another investor only if it reaches a certain price within a time frame. If it does not, you keep the stock.

The benefit of covered calls, according to Compound Stock Earnings, is that you get a premium for each option you write. Usually, the premium is less than 6 percent of the stock’s price. It can go up to 10 percent, depending on circumstances.

Benefits

Covered calls give you many benefits and relatively little risk. The biggest risk is that the stock’s price will skyrocket, and you will be left selling it at the strike price. But if the stock price drops, you still have the money from the premium to cover it.

Compound Stock Earnings: When To Use Covered Calls

You can write covered calls for stocks you own in a regular account. Since the method is considered low risk, you can also write calls for IRA or 401k stocks. Doing this gives you the chance to maximize your retirement account. Use the money from the premiums to invest in your account more, for example.

The Compound Stock Earnings investment professionals can show you how to write covered calls today. You have the option of attending a free seminar hosted by Compound Stock Earnings. You can also purchase Hooper’s book and learn all about the Compound Stock Earnings method.