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compounding covered call writing profits

Simple Interest And Compound Interest

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 […]

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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 […]

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