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3 MORE TRADING DAYS “ LET THE SWEATING BEGIN

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3 MORE TRADING DAYS - LET THE SWEATING BEGIN

Expiration approaches. Only three more trading days and things are looking good for our CPTI portfolio positions. Our SPX has over a 30 point cushion from the 1320/1330 bear call spread. Our RUT Iron Condor also has more than a 30 point cushion from the 740/750 bear call spread. And, our OEX position has almost a 40 point cushion from the 545/535 bull put spread.

When the market opens on Tuesday, unless there is a big gap up, you should be able to close the spreads in question for a nickel or a dime. For those of you who are type-A personalities, a nickel or dime is a small price to pay for peace of mind. Those of you who still use the primitive brokers who are holding maintenance on both sides, you could release additional trading capital by closing one or both sides for a few bucks.

In the meantime, I'll be looking for a potential fourth February trade - likely a bull put spread.

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JANUARY QUICKIE TRADE UPDATE
Last month we used a Siamese Condor for one of our Quickie trades and it worked out very nicely. Some CPTI students asked why I didn't use the Siamese Condor this month. For some reason, there seemed to be less premium available. Remember, just because we like a particular strategy, if the situation isn't appropriate, we should step back. Don't force trades -- and don't compromise your trading ranges for a few extra dollars. That's when you get into trouble - and trouble translates into losses (we don't like those).

CPTI January Quickie #1 - SPX - Iron Condor - 1286.06
10 contracts of a 1265/1255 Bull Put spread and a 1305/1315 Bear Call spread. Sold for a total net credit of about $1.65 ($1,650)

CPTI January Quickie #2 - RUT - Iron Condor - 708.44
10 contracts of a 680/690 Bull Put spread and the 720/730 Bear Call spread. Sold for a total net credit of about $1.55 ($1,550).

The market was pretty tame on Friday. So, our quickie positions still look good. We'll also benefit by the holiday on Monday. That's one more day for premium to erode away with no exposure to the market. We'll only be exposed for three trading days and the dreaded Friday morning open. This, being earnings season, may make for an interesting week.

Remember, these are not CPTI portfolio trades and should be traded by experienced traders.

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Food For Thought
"Circumstances may cause interruptions and delays, but never lose sight of your goal. Prepare yourself in every way you can by increasing your knowledge and adding to your experience, so that you can make the most of opportunity when it occurs." -- Mario Andretti

I can't believe such a profound thought came from the mouth of a race car driver. They must have caught him on a good day - a very good day.

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COUNTDOWN TO ATLANTA - ONLY 3 WEEKS
That Extra Bit Of Knowledge Can Make A Huge Difference!!
Want to learn how to get those extra nickels and dimes on your spread trades? They really add up. And that's just the tip of the iceberg. Come join me in Atlanta for two days of information and fun. It seems most people have signed up for Vegas. Therefore, I still have spots open in Atlanta and only a few left in Vegas. Don't put it off!! It's an investment in your future. They say that money can't buy love. Wouldn't you like to see for yourself?

It's the start of a new year. Time to turn over a new leaf. There are profits waiting for you out 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 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: Contact Support.

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CPTI CURRENT JANUARY POSITIONS
CPTI January Position #1 - RUT Iron Condor - 708.44
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 - 584.62
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 waited for an opportunity to put on a bear call spread to complete the Iron Condor, but nothing looked great. So, we are settling for just holding the bull put spread.

CPTI January Position #3 -- SPX Iron Condor - 1287.61
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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CPTI CURRENT FEBRUARY POSITIONS
CPTI February Position #1 - SPX "Sure Thing" Credit Spread - 1287.61
We originally sold 2 February SPX 1275 calls and bought 2 February 1300 calls for a net credit of about $7.40 ($1,480). The initial maintenance requirement was $5,000. Our profit potential was $1,480. When the market started back up, we reversed our position and put on four contracts of the 1280/1255 bull put spread. Our current adjusted profit potential is $1,420 and the new maintenance is $10,000. Now, w

CPTI February Position #2 - SPX Iron Condor - 1287.61
We sold 10 February SPX 1175 puts and bought 10 February SPX 1160 puts for a credit of $.80 ($800). Then we sold 10 February SPX 1325 calls and bought 10 February SPX 1340 calls for a credit of about $.65 ($650). Our total net credit and profit potential of about $1.45 ($1,450). Maximum profit range is 1175 to 1320 = 150 points. Maintenance requirement is $15,000 (IF you have the right broker).

CPTI February Position #3 - RUT Iron Condor - 708.44
We sold 15 February RUT 640 puts and bought 15 February RUT 630 puts for a credit of $.50 ($750). Then we sold 15 February RUT 750 calls and bought 15 February RUT 760 calls for a credit of $.50 ($750). Our total net credit and profit potential of $1.00 ($1,450). Maximum profit range is 640 to 750 = 110 points. Maintenance requirement is $15,000 (IF you have the right broker).

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ONGOING STRATEGIES
ZERO-PLUS Strategy - January RUT Iron Condor - 708.44
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 - $42.98
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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DATES FOR UPCOMING 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 - ONLY $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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