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OVER $4,000 IN PROFITS!! “ ANOTHER DYNOMITE MONTH!!

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OVER $4,000 IN PROFITS!! - ANOTHER DYNOMITE MONTH!!

The months go by and our profits just keep coming. We had a moment of concern when the SPX moved higher and threatened our 1320 position. However, it cooled off and settled almost 10 points below. The RUT Iron Condor was never threatened.

Here are the final Friday morning settlement numbers for the two indexes:
SPX: 1310.16 (symbol $SET)
RUT: 746.76 (symbol $RLS)

A Word Of Warning
Don't be greedy!! I heard about some CPTI students who placed bear call spreads much too low, didn't get out, and paid a hefty price as a result. Many CPTI students don't realize that it's OK to just have a bull put spread if no good bear call spread is available. You're under no obligation to put on the topside (bear call spread) to complete the Iron Condor. Granted, it's not the most efficient use of your trading capital, but it's better than compromising your range for the sake of some additional premium and putting yourself in harm's way.

As we know, the amount of premium on the call side is often substantially less than is available on the put side. That's why our cushion on the put side is often a lot larger than the call side. As much as we would like to have the entire condor, it's not worth the risk of narrowing the maximum profit range to do it.

Please be careful. You likely worked hard for those dollars. They deserve your respect. Take care of your money and your money will take care of you.

Do You Ever Wonder . . .?
How many of you ever wonder if the people who provide you with trade recommendations actually make the trades themselves? At my CPTI advanced seminars, I show my trading accounts to back up our success rate and to prove that I am "walking the walk" and not just "talking the talk." I put on many of the trades I post in this column. I don't trade a lot of contracts per position - usually 10 to 15, but I'm out there with you.

A Personal Note
I may have some excellent personal news this week. As many of you know, my frequent trips to the Philippines are to be with a wonderful woman. Image that, a woman who can actually tolerate me.

We have plans for her to become Mrs. Couch Potato when the US Embassy in Manila finishes processing the paperwork for her visa. Yes, I guess I may have to share the remote control. But, then again, I have four TVs, so she and I and my two cats can each watch whatever we want.

This week I'm supposed to find out the actual time schedule for her arrival in the US. I was told the process usually takes about 7-8 months. It's been five months since we filed the application. What the hell they do for 7-8 months, God only knows. Stay tuned to this station . . .

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TRACKING CPTI PORTFOLIO RESULTS
We just completed the fifth month of CPTI tracking year number four. The market was a little volatile in the March 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 April. We've now been profitable for 37 OUT OF THE LAST 40 months -- something we can be VERY proud of. Our total profit for the first four months of our fourth tracking year is $14,035 ($9,385 + $4,650).

RECAP OF MARCH POSITIONS
SPX Iron Condor - PROFIT: $1,750
RUT Iron Condor - PROFIT: $1,350
SPX Iron Condor - PROFIT: $1,550
TOTAL MARCH PROFITS: $4,650

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SUMMARY OF CPTI MARCH POSITIONS
CPTI March Position #1 - SPX Iron Condor - 1307.25
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). Profit: $1,750

CPTI March Position #2 - RUT Iron Condor - 746.09
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. Profit: $1,350

CPTI March Position #3 - SPX Iron Condor - 1307.25
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). Profit: $1,550.

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CPTI CURRENT APRIL POSITIONS
CPTI April Position #1 - RUT Iron Condor - 746.09
With the RUT trading at 732.45: We sold 10 April RUT 650 puts and bought 10 April RUT 640 puts for a net credit of $.50 ($500). Then we sold 10 April RUT 800 calls and bought 10 April RUT 810 calls for a credit of about $.45 ($450). Our total net credit and profit potential of $.95 ($950). Maximum profit range 650 to 800. Maintenance is $10,000 (IF you have the right broker).

CPTI April CPTI Position #2 - SPX Bull Put Spread - 1307.25
With the SPX trading at 1287.79, we put on one half of a possible Iron Condor. We sold 10 April SPX 1195 puts and bought 10 April SPX 1180 puts for a credit of $.60 ($600). Our credit and profit potential is $.60 ($600). We have an 82 point cushion. That's a good sleeping cushion. We'll wait on the bear call spread to see if the market is going to break out to the upside. Then we'll make a decision about what strikes to use for the bear call spread, if any.

CPTI April Position #3 - RUT Iron Condor - 7446.09
On Friday, March 3rd, with the RUT trading at about 740, we put on our second RUT Iron Condor for April. We sold 12 April RUT 670 puts and bought 12 April RUT 660 puts for a credit of about $.55 ($660). Then we sold 12 April RUT 800 calls and bought 12 April RUT 810 calls for a credit of about $.55 ($660). Our total net credit and profit potential is $1.10 ($1,320). Our maximum profit range is 670 to 800 and our maintenance is $12,000.

CPTI April Position #3 (Formerly March Position) - SPX "Sure Thing" Credit Spread - 1307.25
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.

"Sure Thing" Adjustment
On Wednesday, when I was traveling, I returned to find that my order was filled to shift gears and roll out our 7 contracts of the March 1280/1305 bear call spread to 14 contracts of the April 1295/1270 bull put spread for a net debit of $.10 ($140). Our new profit potential is $1,460. Our new maintenance is now $35,000 ($2,500 x 14). Let's hope this is the last adjustment.

That's one of the benefits of having the right broker who understands your strategies and what you're trying to accomplish.

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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. We are not compounding our profits by dramatically increasing the number of contracts we trade. Just think of how well we would be doing if we had increased the number of contracts, even a little.

Our March SPX Iron Condor position expired worthless - according to plan. We can now officially add the $2,100 of premium to our cash stash - to take us well over the $40,000 mark. We have now generated $40,550 ($38,450 + $2,100).

Current Zero Plus Position: We will be putting on a new trade very soon!

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QQQ ITM Strangle - Closed Out QQQ ITM Strangle Position
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 29 & 30 - NEWARK, NEW JERSEY
MAY 13 & 14 - SAN FRANCISCO, CA


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 Las Vegas CPTI Seminar was sold out and 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!

37 OUT OF 40 PROFITABLE MONTHS -- & PROFITS KEEP COMING!!
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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