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A WILD RIDE -- AND GUESS WHAT?

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A WILD RIDE - AND GUESS WHAT?

A funny thing happened on the way to the bank. Basically, the market went nuts. That might not be the correct technical term for what happened. The mierde hit the fan. And what was the result? It's kinda weird, actually. The Russell (RUT) started Monday at 701 - it ended tonight at 701. The S&P 500 (SPX) started Monday at 1252 - it ended tonight at 1256.

It was almost as though the last four days never happened, but we know better than that. Most of us got shaken out of the RUT 690/680 bull put spread - and took a hit. Many others also closed their SPX bull put spreads. Those were the prudent moves to make. It will take a while to make back the funds spent to cover those positions. But, overall, if you've been following the program, you should have plenty of those dead presidents in your pocket.

Tomorrow (Friday) morning will provide us with another European option settlement opening. This month, it may not be an issue. Our June S&P 500 Bull put spread is short at 1230. Due to today's crazy up day, we now have a 26 point cushion for tomorrow's opening. It should be fine.

Our CPTI portfolio for June has an excellent chance of winding up profitable - not by much, though. I'll be the first to admit that luck had a bit more to do with it than skill. But it's often good trading skills that put us in a position to get lucky.

Below, check out two more CPTI portfolio positions for July. We'll try to get these filled at or close to the suggested premiums. The market might pop up in the morning. Be careful!

Tomorrow morning, we leave for San Francisco to prepare for this weekend's seminar. I can tell by conversations I've had with the folks who signed up that it's going to be another good group.

I'm happy to announce that I've scheduled a return trip to Chicago where I'll be hosting another CPTI seminar on August 12th & 13th. I hope you can join me there. See below for my contact information.

Don't Forget
Are you planning on trading tomorrow? Remember that a good broker will release your maintenance dollars as soon as the settlement numbers are released. The benefit for using your dollars on a new Friday trade is that you will be able to take in a little extra premium - rather than waiting until Monday and watching premium erode away for over two days.

Settlement Symbols
S&P 500 - $SET
Russell 2000 - $RLS

The S&P 500 settlement number often is released about noon. The RUT is normally released later in the afternoon. Your broker should know. If he doesn't, you can always call 1-888-OPTIONS. The Option Industry Council is always there to answer questions and provide data if you need it.

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NEW CPTI JULY POSITIONS
CPTI July Position #3 - SPX Iron Condor
The positions below are based on Thursday's closing prices. The market was trading up after hours, so the prices might be a bit different. Use some common sense in making strike price and/or credit limit adjustments.

Sell 12 July SPX 1165 puts - SPTSM
Buy 12 July SPX 1150 puts - SPTSJ
Credit of about $.60 ($720)

Sell 12 July SPX 1320 calls - SXYGD
Buy 12 July SPX 1335 calls - SXYGG
Credit of about $.55 ($660)

Total net credit and profit potential of $1.15 ($1,380). The maximum profit range is 1165 to 1320 - 155 points. Maintenance is $18,000 - IF you have the right broker.

CPTI July Position #4 - RUT Iron Condor
Sell 15 July RUT 610 puts - RUYSB
Buy 15 July RUT 600 puts - RUWST
Credit of about $.50 ($750)

Sell 15 July RUT 770 calls - RUTGN
Buy 15 July RUT 780 calls - RUTGP
Credit of about $.55 ($825)

Total net credit and profit potential of $1.15 ($1,575). The maximum profit range is 610 to 770 - 160 points. Maintenance is $15,000 - IF you have the right broker.

Always double check the symbols before placing your order. Be flexible, but not greedy. These are suggestions. You may have to adjust your credit limits up or down based on how the market is moving on Friday. Should be another exciting day. Good luck and trade smart!

We're also going to consider one of the above new positions for our Zero Plus strategy.

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NEW SUMMER CPTI SEMINAR DATE!!
AUGUST 12/13 - CHICAGO, ILLINOIS

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 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 - 701.05
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. Closed for $3,000 loss.

CPTI June Position #2 - SPX Bull Put Spread - 1256.16
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 - 1256.16
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 - 701.05
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 CURRENT JULY POSITIONS
CPTI July Position #1 - SPX - Bull Put Spread - 1256.16
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 - 701.05
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 - 701.05
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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NEW CPTI SUMMER SEMINAR DATE!!
AUGUST 12/13 - CHICAGO

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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