The caller seemed surprised that I had never heard about Compound Stock Earnings Programs, or CSEs. “People are earning three to six percent per month with little or no risk”, she continued, “I’m thinking of attending a seminar”. A wise man once said: “If it sounds too good to be true, it probably is”, but this sure is a creative euphemism for what has to be a rather complicated options strategy.

The buyer of a “call” option obtains the right to purchase a specified quantity of a security from the seller of the option, at a stated “strike price”, and at any time on or before the contract expiration date. When the option seller owns the security, it is called a “covered” call. The CSE hucksters don’t deny that their magic cash flow system is based on selling “covered” call options, but the “come

…