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HOW’S YOUR PULSE? DO YOU STILL HAVE ONE?

HAVING TROUBLE PRINTING?
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HOW'S YOUR PULSE? DO YOU STILL HAVE ONE?

Wasn't that exciting? Today's market movement had an amazing effect on CPTI students. The defibrilators came out of the closet, TUMS came out of the cabinet and traders were fearing the worst and trying to figure out how they were going to tell their wives that they lost $5,000 today.

CPTI traders were holding their collective breaths and about to turn blue until, a little before noon, the Good Option Fairy waved her magic wand and said, "Enough!!!" The selling stopped and the buyers jumped back in. The SPX traded down to about 1235 and rallied back up to almost 1260 and even finished in positive territory by 1.78.

It was much the same for the Russell 2000. The RUT violated our 690 short strike price and hit 684.91 before it ran out of sellers. It rallied to 707.28, within .25 of a positive finish.

It looks like a capitulation (I didn't know you could do that in public). At the very least, today's action is buying us more time. We only need to survive five more trading days. Many CPTI followers bailed yesterday and today - and justifiably so. As I've said dozens of times before, you have to have your sleep threshold. If you're going to lose sleep as a result of holding an option position, it's time to GTFO of the position.

It just seemed like it was time. There is some pretty good support from last December at the 690 level. I felt like we had to give it a chance to work. And it did - fortunately. Where do we go from here? Take my advice - keep the TUMS handy.

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ARE YOU UP TO A QUICKIE?
Well, the aggressive CPTI traders are chomping at the bit for a quickie or two. Remember, these are for experienced and skilled traders who know what to do when good trades go bad and who can afford to take a loss. I don't trade these nor are they considered a part of our official CPTI portfolio. Also, don't forget to double check the symbols before you place any trade.

June Quickie #1 - SPX Iron Condor
With the SPX trading at about 1258, let's:

Sell 10 June SPX 1285 calls - SZPFQ
Buy 10 June SPX 1295 calls - SZPFS
Credit of about $.80 ($800)

Sell 10 June SPX 1225 puts - SZPRE
Buy 10 June SPX 1215 puts - SZPRC
Credit of about $.90 ($900)

Net credit and profit potential of $1.70 ($1,700). The maximum profit range is 1225 to 1285. Our maintenance is $10,000 - IF you have the right broker. Our out of pocket risk is $8,300.

June Quickie #2 - RUT Iron Condor
With the RUUT trading at about 706, let's:

Sell 10 June RUT 670 puts - RUYRN
Buy 10 June RUT 660 puts - RUYRL
Credit of about $.85 ($850)

Sell 10 June RUT 740 calls - RUTFH
Buy 10 June RUT 750 calls - RUTFJ
Credit of about $.55 ($550)

Net credit and profit potential of about $1.40 ($1,400). The maximum profit range is 670 to 740. Our maintenance is $10,000 - IF you have the right broker. Our out-of-pocket risk is $8,600.

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COUNTDOWN TO SAN FRANCISCO - JUNE 17/18

ONLY A FEW SPOTS LEFT!!!

TESTA-MONEY-ALS
Mike -- Just wanted to let you know that one of the things I got the most value out of from your class was how to negotiate with the market makers. Based on the extra premium I made on a couple condors this past month, I made almost enough to pay for the class. J.R.

Hey Mike -- I almost always laugh when I read your newsletters. I have learned a lot since I sat - so very green - in your class, and learned so much. I have been making a living these last 2 1/2 months trading. Thanks for your continued coaching. I plan to retake your class sometime this summer. Doug B.

DO YOU HAVE THE PROFIT-ABILITY?
There are a lot more where these came from. It's always a challenge for me when I have a roomful of bright people who are excited and have a passion for learning. We go over everything imaginable - from the non-directional strategies to the psychology of trading. We cover a lot more than the mechanics. Inquiring minds want to know the whens and the whys, not just the hows. That way, they're prepared for the best and the worst - and know the best way to handle either situation. There are still spots open for San Francisco. Contact me and I'll call you with all the details.

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CPTI CURRENT JUNE POSITIONS
CPTI June Position #1 - RUT Iron Condor - 706.53
On 5/1, we sold 15 June RUT 690 puts and bought 15 June RUT 680 puts for a credit of $.55 ($825). Then, we sold 15 June RUT 830 calls and bought 15 June RUT 840 calls for a credit of $.55 ($825). Our total credit and profit potential is $1.10 ($1,650). Maximum profit range is 690 to 830 (130 points!). We'll be exposed for about seven weeks. Maintenance is $15,000 - IF you have the right broker.

CPTI June Position #2 - SPX Bull Put Spread - 1257.93
On 5/3, we sold 12 June SPX 1230 puts and bought 15 June SPX 1215 puts for a credit of $.60 ($720). Maintenance is $18,000.

CPTI June Position #3 - SPX - Iron Condor - 1257.93
On 5/16 with the SPX trading at about 1295, we sold 12 June SPX 1220 puts and bought 12 June SPX 1205 puts for a credit of $.50 ($600). Then we sold 12 June SPX 1350 calls and bought 12 June SPX 1365 calls for a credit of $.70 ($840). Total net credit and profit potential of $1.20 ($1.440). Our maximum profit range is 1220 to 1350. The maintenance is $18,000 -- IF you have the right broker.

CPTI June Position #4 - RUT - Iron Condor - 706.53
On 5/22, we sold 15 June RUT 780 calls and bought 15 June RUT 790 calls for a credit of about $.45 ($675). Then we sold 15 June RUT 640 puts and bought 15 June RUT 630 puts for a credit of about $.50 ($750) for a total net credit and profit potential of about $.95 (1,425). Our maximum profit range is about 140 points - from 640 to 780. Maintenance is $15,000 - IF you have the right broker.

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CPTI July Position #1 - SPX - Bull Put Spread - 1257.93
On Friday, 5/26, we put on our first position for July - a bull put spread 1165/1150 for a credit of $.60. I watched as hundreds and hundreds of the 1165/1150 spreads were filled throughout the day at that credit limit.

CPTI July Position 2 - RUT - Iron Condor - 706.53
On Thursday, 6/1, with the RUT at about 730, we sold 15 RUT July 630 puts and bought 15 RUT July 620 puts for a credit of about $.55 ($825). Then we sold 12 RUT July 800 calls and bought 12 RUT July 810 calls for a credit of about $.55 ($660). Our maximum profit range is 630 to 800 -- that's 170 points!! Maintenance is 15,000 -- IF you have the right broker.

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ONGOING STRATEGIES
ZERO-PLUS Strategy -
In the past, 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 May RUT 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 $42,650 ($40,550 + $2,100).

Current Zero Plus Position: RUT Iron Condor - 706.53
On Monday we put on the identical, June RUT Iron Condor - consisting of 20 contracts of a bear/call spread of 780/790 and a bull put spread of 640/630 for a credit of about $.95. Our potential profit is $1,900. The maintenance is $20,000 -- IF you have the right broker. The profit range is 640 to 780.

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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 call you with all the pertinent information. The price is a bargain - 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 Newark CPTI Seminar was a great success (no surprise, they all are). There are now 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!

39 OUT OF 42 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 should 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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