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PROFITS KEEP MOUNTING

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Hi CPTIers. I'm reporting to you from our 2-day seminar in Las Vegas. And I'm happy to report that our CPTI Portfolio was again profitable. But we're sort of used to that, aren't we? It never gets old, though. And we should never become complacent or take it for granted. That's 36 out of 39 months. We took in almost $3,000 for a relatively uneventful option cycle.

When I look around the room, I see 25 smiling faces. CPTI students really enjoy expiration weekend. More profits in our pockets. And, now, here in Vegas, they're learning how to hone their trading skills to potentially add to their profits in the future. These folks have traveled to Las Vegas from all over the country, from Canada and even Australia!

During our Trader's Anonymous segment yesterday we heard horror stories about people losing anywhere from a few thousand dollars to a few million dollars. And you'll never guess what they were doing - OK, you guessed it. They had been trading directionally. Now, as a result of those expensive lessons, they have seen the errors of their ways and are dedicating themselves to learning CPTI non-directional strategies.

We don't make money in big chunks, but we make it consistently. Many of the comments here at the seminar about our CPTI strategies include less stress and less time spent monitoring trades, and no huge losses. You'll notice that life doesn't have to be complicated. Most of life's complications are our own doing.

NOTE: Check out the two NEW spring seminar dates -- San Francisco and New Jersey. (see below)

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APRIL OPPORTUNITIES
As you know, the market is closed Monday - in honor of some dead presidents. Well, we Couch Potatoes can appreciate that. Every month we celebrate the passing of dead presidents - from the market into our pockets. Sweet.

Now that some maintenance dollars have been released, I'm going to start looking for some interesting April positions. As a preview, in the seminar we've explored the 12051195 bull put spread for $.50. On Tuesday, the numbers will be different, but that may be an interesting place for us to start.

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TRACKING CPTI PORTFOLIO RESULTS
We just completed the fourth month of CPTI tracking year number four. The market was a little volatile in the February cycle, but it's just the way we like it. The market ended up higher, but still comfortably in our ranges. We started out with three positions, but rolled our "sure thing" credit spread position to March. We've now been profitable for 36 OUT OF THE LAST 39 months -- something we can be VERY proud of. Our total profit for the first four months of our fourth tracking year is $9,385 ($6,435 + $2,950).

RECAP OF FEBRUARY POSITIONS
SPX Iron Condor - PROFIT: $1,450
RUT Iron Condor - PROFIT: $1,500
TOTAL JANUARY PROFITS: $2,950.00

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SUMMARY OF CPTI CURRENT POSITIONS
CPTI February Position #1 - SPX Iron Condor - 1287.24
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). Profit: $1,450

CPTI February Position #2 - RUT Iron Condor - 730.94
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 ($1,500). Maximum profit range is 640 to 750 = 110 points. Maintenance requirement is $15,000 (IF you have the right broker). Profit: $1,500

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CPTI CURRENT MARCH POSITIONS
CPTI March Position #1 - SPX Iron Condor - 1287.24
We sold 10 SPX March 1340 calls and bought 10 SPX March 1355 calls for a credit of $.85 ($850). Then we sold 10 contracts of SPX March 1190 puts and bought 10 contracts of SPX March 1175 puts for a credit of $.90 ($900)

Our total net credit and profit potential is $1.75 ($1,750). Our maximum profit range is 1190 all the way up to 1340 (150 Points!!). The maintenance is $15,000 (IF you have the right broker).

CPTI March Position #2 - RUT Iron Condor - 730.94
On Wednesday 2/1, we sold 15 March RUT 660 puts and bought 15 March RUT 650 puts for a credit of about: $.40 ($600). Then we sold 15 March RUT 790 calls and bought 15 March RUT 800 calls for a credit of about: $.50 ($750).

Total net credit and profit potential of $.90 ($1,350). Maintenance is $15,000 (IF you have the right broker). Maximum profit range is 660 to 790.

CPTI March Position #3 - SPX Iron Condor - 1287.24
With the SPX at about 1265 we sold 10 March SPX 1190 puts and bought 10 March SPX 1175 puts for a credit of $.75 ($750). Then, a few days later on a bounce, we sold 10 SPX March 1320 calls and bought 10 March SPX 1335 calls for a credit of $.80 ($800).

Our total net credit is $1.55 ($1,550). Our maximum profit range is 1190 to 1320 - a 140 point range. The maintenance is $15,000 (IF you have the right broker).

CPTI March Position #4 (Formerly Feb. Position) - SPX "Sure Thing" Credit Spread - 1287.24
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. We reversed our position and put on four contracts of the 1280/1255 bull put spread. Our current adjusted profit potential is $1,420 with new maintenance of $10,000. We had to reverse again. Our new position is a 1280/1305 bear call spread with a profit potential of $1,600. We now want the SPX to close below 1280.

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ONGOING STRATEGIES
ZERO-PLUS Strategy -
A few years ago$, 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.

With the successful RUT position generating $2,200, our new cash position is $38,450 ($36,250 + $2,200).

Current Zero Plus Position: March SPX Iron Condor - 1287.24
On Friday, we entered the same SPX Iron Condor for our Zero Plus position that we put on in our first CPTI March portfolio position. However, we did an extra few contracts.

We sold 12 SPX March 1340 calls and bought 12 SPX March 1355 calls for a credit of $.85 ($1,020). Then we sold 12 contracts of SPX March 1190 puts and bought 12 contracts of SPX March 1175 puts for a credit of $.90 ($1,080)

Our total net credit and profit potential is $1.75 ($2,100). The maintenance is $18,000.

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QQQ ITM Strangle - Goodbye For Now
We owned 10 January 2007 $42 puts and 10 January 2007 $32 calls at a total cost of $14,600. Only $4,600 was at risk as the other $10,000 of intrinsic value would always be there.

ADJUSTMENT: Closed Out QQQ ITM Strangle Position
This week, with the QQQQs trading at about $40.55, we bought back the short February $37 call for $3.60 ($3,600). Then we sold the Jan. 2007 $32 calls for $10.20 ($10,200). We also sold our Jan. 2007 $42 puts for $2.90 ($2,900). Our net credit for these transactions was $9,500.

It originally cost us $14,600 to initiate the position. We collected, over the life of the trade, $5,950 in premium. We had $9,500 plus the $5,950 premium for a total of $15,450. Subtracting our initial cost of $14,600 leaves us with a profit of $850. It's not that much considering all the effort we put forth, but a profit is still a profit. Now, the funds that were tied up are free for use in a better opportunity. Our return on the $4,600 risk was about 18.5%.

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NEW CPTI SEMINAR DATES:
APRIL 29TH/30TH - NEWARK, NJ
MAY 13TH /14TH - SAN FRANCISCO

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 Atlanta CPTI Seminar was a great success (no surprise, they all are). There are now many 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!

36 OUT OF 39 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 my 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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