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34 OUT OF 37 PROFITABLE MONTHS “ IMPRESSIVE!!

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34 OUT OF 37 PROFITABLE MONTHS - IMPRESSIVE!!

OK, so it wasn't a blockbuster month, but it WAS PROFITABLE. Hey, $255 is nothing to sneeze at. That's an entire afternoon at a dollar store, a 2 1/2 hour Shiatsu massage, or 50 Little Caesars large pepperoni pizzas - each a memorable experience in its own right.

There are many CPTI students who held onto their SPX and RUT Iron Condors - and they made out just fine - this time - keeping the approximate $3,400 of premium we took in originally. Do I regret closing the positions early? No, not at all. I'd do it again, but you have to remember that I'm a big chickenbleep when it comes to risk. Remember, an ounce of prevention . . . and all that.

TRACKING CPTI PORTFOLIO RESULTS
We just completed the second month of CPTI tracking year number four. We had a profitable December, not by much, but a profit is a profit. We closed out our two positions early and still had a $255 profit. We protected our trading capital and live to trade another month. We've now been profitable for 34 OUT OF THE LAST 37 months -- something we can be VERY proud of. Our total profits for the first two months of our fourth year is $2,085 ($1,830 + $255).

RECAP OF DECEMBER POSITIONS
SPX Iron Condor - Loss: $420
RUT Iron Condor - Profit: $675
TOTAL DECEMBER PROFITS: $255

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DECEMBER QUICKIE RESULTS
This month both quickie positions worked out nicely. The market just seemed to churn for the last week - exactly what we want to happen. Here's how they played out.

1. SPX Iron Condor - finished comfortably in the 1230 to 1280 range. Everything expired worthless and the profit was 100% of the $1,200 premium taken in. Profit: $1,200.

2. MID Siamese Condor - MID settled at 746.78. We had taken in $11.25 in premium and the ten-contract position settled with a profit of $4,470.

Many skilled CPTI students exited the MID Siamese Condor early and locked in some very nice profits before the Friday morning settlement. Others held on and still recorded a healthy profit. Want to learn more about Siamese Condors? Come to one of my CPTI advanced seminars (see below).

Remember, the Quickies should only be traded by experienced traders. They can be tricky. Many months everything goes just fine. Other month, the manure hits the fan and you better know how to deal with a room full of manure -- or your money can disappear.

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DECEMBER SETTLEMENT NUMBERS

Write down these settlement symbols. Then, on expiration Friday, in the afternoon, you can look them up yourself. Or you can still call your broker.

S&P 500 (SPX) -- $SET = 1274.84
Russell 2000 (RUT) -- $RLS = 686.11
S&P 100 (OEX) - OEX = 579.08
S&P Midcap 400 (MID) -- $MIV = 746.78

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Things To Think About
- Even at a Mensa convention, someone is the dumbest person in the room.
- Heredity is something parents comfortably believe in, if they have a bright child.
- It's good to question authority, but not mine.
- Love doesn't really make the world go round, but it makes the ride worthwhile.
- Trust everybody . . . then cut the cards.
- A lot of pessimists get that way from financing optimists.
- When you have your head up your butt, 4 of the 5 senses do not work.

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DO YOU HAVE WHAT IT TAKES TO PROFIT IN 2006?

That Extra Bit Of Knowledge That Makes A Big Difference?

TWO NEW CPTI 2-DAY ADVANCED SEMINAR DATES ANNOUNCED

It's that time of year. Don't give yourself a wallet. Give yourself t. he gift that will teach you how to fill your wallet. It's a gift that will last a lifetime. Attend a CPTI seminar and learn strategies that work -- over and over and over again!! I'll teach you how making money can be boring -- and profitable. I'm booking reservations every day. Don't wait too long! Only 8 spots left for Las Vegas!

Email me for information -- but only if you're a SERIOUS trader who wants to learn. I'm here for you. I'll be glad to send you all the details and contact you to go over your questions. The seminars are both fun and informative. Contact me today: mparnos@optioninvestor.com.

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SUMMARY OF CPTI DECEMBER POSITIONS
CPTI December Position #1 - SPX Iron Condor - 1267.32
We sold 12 December SPX 1150 puts and bought 12 Dec. SPX 1135 puts for a credit of $.80 ($960). Then we sold 12 December SPX 1285 calls and bought 12 Dec. SPX 1300 calls for a credit of $.60 ($720). Total net credit and profit potential of about $1.40 ($1,680). Maximum profit range is 1150 to 1285. Maintenance is $18,000. Closed out at $1.75 ($2,100). Loss of $420

CPTI December Position #2 - RUT Iron Condor - 683.09
With the RUT trading at about 658, we sold 15 Dec. RUT 590 puts and bought 15 Dec. RUT 580 puts for a credit of $.60 ($900). Then we sold 15 Dec. RUT 720 calls and bought 15 Dec. RUT 730 calls for a credit of $.55 ($825). Our total credit and profit potential is $1.15 ($1,725). The maximum profit range is 590 to 720. Maintenance is $15,000. Closed out at $.70 (1,050). Profit of $675.

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CPTI CURRENT JANUARY POSITIONS
CPTI January Position #1 - RUT Iron Condor - 683.09
We sold 15 Jan. RUT 620 puts and bought 15 Jan. RUT 610 puts for a credit of $.65 ($900). Then we sold 15 January RUT 740 calls and bought 15 RUT January 750 calls for a credit of $.55 ($825). Total premium and profit potential is $1,725. Our maintenance is $15,000.

CPTI January Position #2 - OEX Bull Put Spread - 579.08
We sold 15 OEX January 545 puts and bought 15 OEX January 535 puts for a credit of $.50 ($750). Maintenance is $15,000.

We're going to be waiting for an opportunity to put on the bear call spread to complete the Iron Condor. If we get the opportunity, great! If not, we'll be satisfied with just holding the bull put spread.

CPTI January Position #3 -- SPX Iron Condor - 1267.32
We sold 15 SPX January 1200 puts and bought 15 SPX January 1190 puts for a credit of $.60 ($900). Then we sold 15 SPX January 1320 calls and bought 15 SPX January 1330 calls for $.65 ($975). Total premium and profit potential of $1,875. Maintenance is $15,000.

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ONGOING STRATEGIES
ZERO-PLUS Strategy - January RUT Iron Condor - 683.09
In my Feb. 8, 2004 column, I outlined a strategy based on an initial investment of $100,000. $74,000 was spent on zero coupon bonds maturing in about seven years at a value of $100,000. The principal $100,000 investment is guaranteed. We're trading the remaining $26,000 to generate a "risk free" return on the original investment.

As we did in our CPTI portfolio account, we closed our 1235/1245 Nov. bear call spreads for a loss of $1,350. We deduct the $1,350 from our previous cash position of $37,600 to establish our new cash position of $36,250.

Current Zero Plus Position:
With the RUT trading at about 685, we sold 20 Jan. RUT 620 puts and bought 20 Jan. RUT 610 puts for a credit of about $.65 ($1,300). Then we sold 20 Jan. RUT 750 calls and bought 20 of the Jan. RUT 760 calls for $.45 ($900). Our maintenance is $15,000. Our maximum profit range is 620 to 750. Our net credit and profit potential is $1.10 = $2,200.

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QQQ ITM Strangle - $41.58
We own 10 January 2007 $42 puts and 10 January 2007 $32 calls at a total cost of $14,600. Only $4,600 is at risk as the other $10,000 of intrinsic value will always be there.

Near October expiration, with the QQQQs trading near $38, we rolled our short October $37 puts and calls to the short November $37 puts and calls.

Based on these figures, the new total of generated premium (through the November cycle) is $5,950 ($5,350 plus the $600).

We currently are short the December $37 calls. We have no short put position at this time.

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NEW DATES FOR CPTI 2-DAY ADVANCED SEMINARS -
February 4 & 5 - Atlanta, GA
February 18 & 19 - Las Vegas, NV

Our next CPTI seminars will be on Saturday & Sunday, February 4th & 5th in Atlanta and Saturday & Sunday, February 18th & 19th in Las Vegas.

Our CPTI seminars are limited to ONLY 25 ATTENDEES. If you're a serious options trader and you want to learn the nuances of our advanced non-directional trading strategies and hone your trading skills, contact me ASAP at mparnos@optioninvestor.com. I'll send you all the pertinent information. The price is right -- $995.00 -- less than the profit from one Iron Condor trade -- and you'll have a two-day experience that you'll remember, and profit from, for a lifetime.

The recent Denver CPTI Seminar was a great success (no surprise, they all are). There are now 25 more enlightened minds, with smiles attached, ready to generate a healthy annual return using our CPTI strategies. Remember, if you attend one of my CPTI seminars, you are entitled to RETAKE the seminar a second time at NO CHARGE!

34 OUT OF 37 PROFITABLE MONTHS!
WANT TO ACHIEVE SUCCESS WITHOUT STRESS?
OF COURSE YOU DO!!
USE OUR CPTI WEALTH-BUILDING TECHNIQUES!

You should really try and make one of these seminars, if you can. With what you learn, you'll see a substantial increase in your trading results. Contact me at mparnos@optioninvestor.com. If you've already signed up, I'll see you there. If you haven't signed up, what are you waiting for?

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HAPPY TRADING!
Remember the CPTI credo: May our remote batteries and self-discipline last forever, but mierde happens. Be prepared! In trading, as in life, it's not the cards we're dealt. It's how we play them.
MIKE PARNOS, Your Options Therapist and CPTI Master Strategist

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Couch Potato Trading Institute Disclaimer
All results reported in this section are hypothetical. While the numbers represented here may have been achieved or beaten by our readers, we make no representation that any individual investor achieved these exact results. The tracking for the plays listed in this section uses closing prices for the day the newsletter is published and it is not meant to imply that any reader actually received those prices (though many often do) or participated in these recommendations (even though many do). The portfolio represented here is hypothetical and for investment education purposes only. It is only an illustration of what type of gains a knowledgeable trader might receive utilizing these strategies. If you don't get close to these results, guess what. It isn't the fault of the strategies.

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