I was first attracted to Compound Stock Earnings and listened to their radio program on KRLD, Dallas 7am to 8am saturdays. They constantly talked about their unconventional wisdom and how they were making 3% to 8% per month on covered calls. It sounded very attractive. The problem was that while you may make 3% to 8% on the premium you receive from selling the call, they conveniently downplay the losses you take when the stock goes down 25% or 40%.
Hooper said at his seminars " don't worry , I'll show you how to manage the fallen position, make 5% per month and get all your money back in two years. Well, that didn't work the way he described. In fact after 8 months I was down $15,000 in my account. He was very critical of brokers and others who only make 5% to 8% per year while he was making 3% to 8% per month. He is very insulting during his seminars and regularly criticized local financial writers and brokers. His web site advertised full support, but what one got was e-mails with no dialog which is not much help at all. I called his office but rarely was anyone there who could help. I guess I was lucky since I heard from a lady in California who according to her was personally coached by Hooper and lost over $200,000. Whenever I complained in e-mails or at the seminar he would say I wasn't following the rules.
In all fairness to Hooper, I did speak to several people in 2007 who said they made money with the system, but it seemed I spoke with more that didn't. However, I was never able to talk to these that said they made money on my problems as we weren't given access. One person was an ex-airline pilot who said he made money. He also became an instructor. Mr. Hooper also did not disclose that in 2005 he set up a $40,000 fund and bragged he would show everyone how to do it and would use his covered call method and expand the fund to 5 million in five years. According to a report I found in You Tube, after a year with Hooper managing the fund, it lost money and he quietly closed it.
Earlier this year I wrote a letter to Compound Stock Earnings asking them to refund my $5,000 that I had invested in his seminars. They refused but Aaron Zelewski offered to personally coach me and show how the method works. I told him it would be better if he would use his own money and show me how he does it. I never heard from him.
My advice for this company is to get a written 100% money-back guarantee if not satisfied from them before investing any money. Also ask them to show you that they are investing the same way they they advising
No covered calls