In Volume 1 of the Complete Encyclopedia for Covered Call Writing, I addressed the importance of compounding profits and discussed the Rule of 72 (the time it takes to double your money based on annualized return on investments). In this related article, I will highlight the difference between simple interest and compounded interest and therefore […]

Compounding our Covered Call Writing Profits
When studying investment basics, I’m reminded of a quote from none other than Albert Einstein who called compounding “the greatest mathematical discovery of all time”. Stated differently, a dollar received today is worth more than a dollar received tomorrow. This simple but powerful sentence sums up the concept of the time value of money (TVM). It is true because […]

Margin Accounts and Covered Call Writing
In real estate investing, the concept of leveraged investing is well known and documented in such best-sellers as Robert G. Allen’s Nothing Down for the 2000s and Michael A. Lechter’s OPM (Other People’s Money). The idea of generating profit while using little or none of your own money down is enticing and exciting. It actually […]
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