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WILL SUCCESS SPOIL THE CPTI? NEVER!!

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WILL SUCCESS SPOIL THE CPTI? NEVER!!

This is the column where, almost every month, I say, "Gee, our positions look good. We're only a Friday morning settlement number away from being 100% profitable - AGAIN!! Well, I won't say that this month. You can just assume that it's the case. You can also assume it will be profitable month number 38 out of 41.

As long as we're assuming, let's also assume that, when the settlement numbers are released, it will become obvious that your spread positions will expire worthless. If that's the case, your maintenance dollars will be sitting there useless Friday, Saturday and Sunday. With many brokers, your dollars will only be available for you to use on the Monday following expiration.

So, I will use this space to remind CPTI students that, IF they have the right broker, they should be able to have those maintenance dollars released Friday afternoon. What difference does it make to have the funds available on Friday as opposed to Monday? If you find a trading opportunity on Friday, you would be able to make the trade and take in more premium. By Monday, all other things being equal, the premium available would be less because of the three additional days of time erosion. Might be a nickel or a dime, depending on the index and your trading skills. But those nickels and dimes really add up - and they're there for you. They're free - IF you make good decisions.

Settlement Symbols
Here are the settlement symbols for the indexes in our portfolio.
$SET - for the S&P 500 (SPX)
$RLS - for the Russell 2000 (RUT)

The numbers are typically available early afternoon on Friday - sometimes a little earlier or later. You can type those symbols into your data provider, call your broker, or call 1-888-OPTIONS.

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I Hereby Empower You To Make Your Own Decisions
For those who may have missed it, a few days ago we put on another May position - a bull put spread on the SPX. On the 1215/1200 bull put spread we initially asked for a credit of $.65. It looked reasonable at the time. But, the market leveled out and some of the premium disappeared. So, we reduced our credit limit to $.55. It took a little while, but we got filled. A number of contracts for those two options traded and I know many CPTI students got filled at $.55.

The point here is that if you're order isn't being filled, and the market hasn't moved dramatically in one direction or the other, you should adjust your order. Remember, the positions I suggest are just that - suggestions. I hereby empower you to change a suggested credit limit - whenever you want! You won't have to go to confession, go to the principal's office, or won't be struck by lightning (possible, but not likely).

Advanced CPTI students, who really understand what they're doing, use my suggested positions as a guideline. They can read a chart and understand the risks. They often get more premium, sometimes a bit less. They may even adjust the strikes and/or spreads to their own risk tolerance. Many are more conservative than I am, and a few are more aggressive.

Learn the "whys and hows." Don't settle for just the "whats and wheres."

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Countdown To Newark
A little more than a week remains to the 2-day CPTI advanced seminar (April 29th & 30th) in Newark, N.J.. There are still spots left for a few SERIOUS east coast option traders. Come and learn to hone your trading skills and pick up that extra premium on your trades. Contact me. (Contact Support). I'll call you to go over all your questions and all the details. Don't put it off!! Procrastination, especially in our business, is a bad habit. If you wait too long to pull the trigger on a trade, often the opportunity disappears.

Spots still remain for my CPTI San Francisco seminar. See below for details.

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CPTI CURRENT APRIL POSITIONS
CPTI April Position #1 - RUT Iron Condor - 774.67
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 - 1311.46
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 - 774.67
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 - 1311.46
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 $1,460 with new maintenance of $35,000 ($2,500 x 14). Our current position is the 14 contracts of the April 1295/1270 bull put spread.

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CPTI CURRENT MAY POSITIONS
CPTI May Position #1 - RUT Iron Condor - 774.67
On 3/22, with the RUT trading from 733 to 745, we sold 15 May RUT 650 puts and bought 15 May 640 puts for a credit of $.55 ($825). Then, RUT moved up and we sold 15 May RUT 810 calls and bought 15 May RUT 820 calls for a credit of $.55 ($825). Total net credit and profit potential of $1.10 ($1,650). Maximum profit range is 650 to 810. Maintenance is $15,000 (IF you have the right broker).

CPTI May Position #2 - SPX Iron Condor - 1311.46
On 3/23, with the SPX trading from 1298 to 1304, we sold 12 May SPX 1225 puts and bought 12 May SPX 1210 puts for a credit of $.70 ($840). Then we sold 12 May SPX 1375 calls and bough 12 May SPX 1390 calls for a credit of $.75 ($900). Our total net credit is $1.45 ($1,740). Our maximum profit range is 1225 to 1375 - 150 points!! Maintenance is $18,000 (IF you have the right broker).

CPTI May Position #3 - SPX Bull Put Spread - 1311.46
On 4/17, with the SPX trading at about 1290, we sold 12 SPX May 1215 puts and bought 12 SPX May 1200 puts for a credit of about $.55 ($660). Maintenance is $18,000.

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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: RUT Iron Condor - 774.67
When we put on the RUT Iron Condor as a CPTI position a few days ago (see May CPTI Position #1), we put on the same position for our Zero Plus Strategy, with one exception. Instead of 15 contracts, we put on 20 contracts. Our total net credit was $1.10 and our potential profit is $2,100.

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QQQ ITM Strangle - Closed Out Previous 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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CPTI SPRING SEMINAR DATES:
APRIL 29 & 30 - NEWARK, NEW JERSEY
JUNE 17 & 18 - 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!!
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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