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TIS' THE SEASON TO BE JOLLY

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TIS THE SEASON TO BE JOLLY
One beautiful December evening Pedro and his girlfriend Rosita were sitting by the side of the ocean. It was a romantic full moon, when Pedro said, "Hey, mamacita, let's play Weeweechu."

"Oh no, not now, lets look at the moon" said Rosita.

"Oh, c'mon baby, let's you and I play Weeweechu. I love you and it's the perfect time," Pedro begged.

"But I wanna just hold your hand and watch the moon."

"Please, corazoncito, just once, play Weeweechu with me."

Rosita looked at Pedro and said, "OK, one time, we'll play Weeweechu." Pedro grabbed his guitar and they both sang.....

"Weeweechu a Merry Christmas, Weeweechu a Merry Christmas, Weeweechu a Merry Christmas, and a Happy New Year."

HAPPY HOLIDAYS TO ALL MY VALUED STUDENTS!!

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Light Volume - There's Christmas In The Air As the sun sets on another Christmas, the anticipated year-end rally may have pooped out prematurely. I'll be interested to see the retail numbers as they come out. In a column about a month ago, I mentioned that the stores didn't look as crowded as they should have been on the day after Thanksgiving and the weekend that followed. I personally didn't make the bet, but I know some CPTI students that did -- in various forms. Some bought straight puts, some used bear put spreads while others used bear call spreads -- all going out to February. Did they buy in-the-money options or out-of-the-money options? What would am experienced and conservative CPTI trader do? Do we like to take in premium or buy options? As you all must know by now, I'm a confirmed chicken when it comes to risk. Were I to have put on the position, I would have established a bear call spread -- and taken in as much as possible while still having a bit of a cushion. I'll be anxious to hear how (or if) they worked out.

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Shhhh . . . I Bet You Didn't Know That . . .
Early politicians required feedback from the public to determine what the people considered important. Since there were no telephones, TV's or radios the politicians sent their assistants to local taverns, pubs, and bars.

They were told to "go sip some ale" and listen to people's conversations and political concerns. Many assistants were dispatched at different times. "You go sip here" and "You go sip there." The two words "go sip" were eventually combined when referring to the local opinion and, thus we have the term "gossip."
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DO YOU HAVE WHAT IT TAKES TO PROFIT IN 2006?
That Extra Bit Of Knowledge Can Make A Huge Difference!!
TWO NEW CPTI 2-DAY ADVANCED SEMINAR DATES ANNOUNCED

Did you get a new shirt for Christmas? Was it a welcome gift because you've lost yours trading directionally? It's nothing to be embarassed about. All successful CPTI students once were directional traders -- traders who finally saw a much smaller brokerage account and the error of their ways. Now, using our non-directional strategies and the wisdom they acquired from our CPTI seminars, CPTI students now conservatively position themselves for profit -- EVERY MONTH.
It's the start of a new year. Time to turn over a new leaf. There are PROFITS waiting for you under there. But you have to make the effort. Give yourself the 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 daily. Don't wait too long! Vegas spots are going fast!
Email me for information -- but only if you're a SERIOUS trader and you want to learn. I'm here for you. I'll send you all the details and contact you personally to go over your questions. The seminars are both fun and informative. Contact me today: mparnos@optioninvestor.com.
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CPTI CURRENT JANUARY POSITIONS
CPTI January Position #1 - RUT Iron Condor - 686.45
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 - 579.41
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 - 1268.47
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 - 686.45
In a previous 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 - $41.40

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 December expiration, with the QQQQs, we rolled our short December $37 calls to the short January $37 calls.
The total of generated premium (through the January cycle) is still $5,950. We currently are short the January $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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