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A LITTLE RESEARCH AND LOOK WHAT I FOUND

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Earlier today, at the Newark seminar, we went through the indexes researching possible positions. We came up with an Iron Condor on the Russell that looks appealing. So, we will place an order for our first June position. Then, after that, we may try an experiment.

CPTI June Position #1 - RUT Iron Condor - 764.54
Sell 15 June RUT 690 puts - RUYRR!
Buy 15 June RUT 680 puts - RUYRP
Credit of about $.60 ($900)

Sell 15 June RUT 830 calls - RUZFF
Buy 15 June RUT 840 calls - RUZFH
Credit of about $.60 ($900)

Total credit and profit potential of $1.20 ($1,800). Maximum profit range is 690 to 840 (140 points!). We're exposed for about seven weeks. Let's hope the market doesn't get too excited -- in either direction. Maintenance is $15,000 - IF you have the right broker.

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Ready To Try An Experiment?
When teaching the Siamese Condor this weekend, we were using the SPX and noticed that some good strike prices were available on the Weekly options. In the past, we've used the Siamese Condor on short-term trades - usually the last week prior to expiration. But, when doing our research, the following trade popped up.

When the weeklies came out, I looked at them as potential quickie plays. The problem was the lack of availability of strike prices. Most of them were near and at the money. In order to do a Siamese Condor properly, you need to have strikes available about 30 points away.

Before I go on, I want to remind you that the quickie style plays require your attention. Also, you have to know the strategy and have the self-discipline to get out when necessary. I don't trade them. This is not an official suggested trade for the CPTI Portfolio, but it could be fun.

So, here's what I found.
Sell 10 May SPX 1310 weekly puts @ about $4.70 - JXAQB
Sell 10 May SPX 1310 weekly calls @ about $9.70 - JXAEB
Buy 10 May SPX 1280 weekly puts @ about $.75 - JXAQP
Buy 10 May SPX 1340 weekly calls @ about $.35 - JXAEH

We will have taken in $14.40 in premium and then spent $1.10 for our long options. Our net credit is about $13.30. Our exit points will be 1343.30 on top and 1296.70 on the bottom. That's a 46.60 profit range. We will make some profit if the SPX settles anywhere in between those parameters. The closer it finishes to 1310, the more we will make. There are only four trading days left for this position and, of course, the Friday morning settlement.

A Word Of Warning
When I was looking at the option chain (based on Friday's closing prices), it looked as though the market makers had narrowed the bid/ask spreads to about $.20 on all the options. That's not realistic. We know that bid/ask spreads will vary from $.20 on options far out of the money to as much as $1.60 on at the money options. So, the above Siamese Condor may not be able to be filled.

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An Email Request
By the way, I love answering your questions. I really do. But, I really appreciate it when you sign your emails. I like to know whom I'm talking to. Are you keeping a low profile? Are you in the witness protection program? If not, I expect to see your name on your questions. Thanks.

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Countdown To San Francisco
Today we wrapped up the two-day CPTI seminar in Newark. It's always a challenge for me when I have a roomful of bright people who are excited about learning and who have a great sense of humor. We go over everything imaginable - from the non-directional strategies to the psychology of trading. We cover a lot more than the mechanics of putting on a trade. Inquiring minds want to know the whens and the whys. That way, they're prepared for the best and the worst - and know how to handle either situation.

There are still spots open for San Francisco. Don't be shy. Contact me and I'll call you with all the details.

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CPTI CURRENT MAY POSITIONS
CPTI May Position #1 - RUT Iron Condor - 764.54
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 - 1310.61
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 - 1310.61
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 - 764.54
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 DATE:
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 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!

38 OUT OF 41 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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