Title: Ignores several problems...
Product review: The ideas in this book are interesting, but the actuality is highly flawed. The idea that you can write a 1 month call for 10% of the value of the stock is erroneous. Then, since he advises investing with borrowed money, he claims this is a return of 20% per month. He extends this to 40% just because nobody minds optimism. Writing covered calls is fine, but you do have to realize that this will limit your upside, but not your downside. He neglects to mention this!Mr. Cook uses margin buying for every example, yet never gives a single calculation for what happens when a stock goes down, for example showing how you can lose 100% of your investment by a price drop of 50%. Really, the only three ideas in here are 1. Covered call writing (with exaggerated numbers) 2. Buying rolling stocks (which are not supported by his own graphs) and 3. Buying on the stock split (which is not such a guarantee of success as he claims).Overall, the returns of these strategies are not credible.
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