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FOOLS RUSH IN - IT'S QUICKIES TIME

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There's a lot to talk about tonight. We have some quickie plays for our experienced CPTI students and we have a new seminar date and location to announce.

Despite the wild swings in the market, our positions are still comfortably inside the ranges. With five more trading days until expiration, we seem (and I emphasize "seem") to be in pretty good shape for our July expiration. The chaos in the Middle East along with gas prices, etc. have made it hard for the market to gain any footing. We'll likely have some short covering tomorrow afternoon after a move lower in the morning. Things don't look good for the bulls right now.

Let's look at a few potential quickie plays. The closing prices tonight are a little screwy and out of whack. The market has had some wild swings lately. Today it was to the downside. The weird bid and ask prices probably have a lot to do with the fact that the VIX went up an amazing 3.30. How will the market open tomorrow morning? It's anybody's guess. But, let's throw some numbers out there and see what happens. Remember, trade these quickies at your own risk. Quickies are supposed to be used in a range-bound kind of market - and this market is not bound by anything right about now.

CPTI July Quickie #1
With the RUT at 687.29
Sell 10 RUT July 650 puts - RUYSJ
Buy 10 RUT July 640 puts - RUYSH
Credit of about $.90 ($900)

Sell 10 RUT July 720 calls - RUTGD
Buy 10 RUT July 730 calls - RUTGF
Credit of about $.55 ($550)

Net credit and profit potential of $1.45 ($1,450). Maximum profit range is 650 to 720. Maintenance is $10,000.

CPTI July Quickie #2
With the SPX at 1242.29
Sell 10 SPX July 1215 puts - SZPSC
Buy 10 SPX July 1205 puts - SZPSA
Credit of about $1.60 ($1,600)

Sell 10 SPX July 1270 calls - SZPGN
Buy 10 SPX July 1280 calls - SZPGP
Credit of about $.95 ($950)

Net credit and profit potential of about $2.55 ($2,550). Maximum profit range of 1215 to 1270. Maintenance is $10,000.

Let me repeat. The closing numbers are nuts. It's almost impossible to come up with a realistic credit limit - especially for the SPX spread above. These quickies can be dangerous and should be traded only by experienced traders who can babysit the position. I, personally, do NOT trade these quickies. If you dare, make sure you double check the symbols before you place your orders.

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PHOENIX HERE WE COME! - September 16th & 17th
The CPTI is coming to Phoenix. Based on requests from CPTI subscribers and others, we're going to travel to the southwest US for the first time - bringing the knowledge and strategies that have enabled us to be profitable 40 out of the last 43 months. See more info below. Don't forget -- there are still spots left for the Chicago seminar!!

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A Few Observations
- Experience is the thing you have left when everything else is gone.
- What if there were no hypothetical questions?
- One nice thing about egotists: They don't talk about other people.
- When the only tool you own is a hammer, every problem begins to look like a nail.

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CPTI CURRENT JULY POSITIONS
CPTI July Position #1 - SPX - Bull Put Spread - 1242.29
On Friday, 5/26, we put on our first position for July - 12 contracts of a bull put spread 1165/1150 for a credit of $.60 ($720). 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 - 687.29
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.

CPTI July Position #3 - SPX Iron Condor - 1242.29
On Friday 6/16, we sold 12 July SPX 1165 puts and bought 12 July SPX 1150 puts for a credit of about $.60 ($720). Then we sold 12 July SPX 1320 calls and bought 12 July SPX 1335 calls for a 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 - 687.29
On Friday 6/16, we sold 15 July RUT 610 puts and bought 15 July RUT 600 puts for a credit of about $.50 ($750). Then we sold 15 July RUT 770 calls and bought 15 July RUT 780 calls for a 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.

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CPTI CURRENT AUGUST POSITIONS
CPTI August Position #1 - SPX - Bull Put Spread - 1242.29
On Thursday morning, 7/6, with the SPX at about 1273, we put on our first position for August - 12 contracts of a bull put spread 1175/1160 for a credit of $.60 ($720). I watched as hundreds and hundreds of the 1165/1150 spreads were filled throughout the day at that credit limit. At this writing, we have a nice fat 90 point cushion.

CPTI August Position #2 - RUT - Iron Condor - 687.29
On 7/10, with the RUT trading at about 713 we sold 15 RUT August 780 calls and bought 15 RUT August 790 calls for a credit of $.65 ($975). Then we sold 15 RUT August 630 puts and bought 15 RUT August 620 puts for $.50 ($750). Maximum profit range is 630 to 780. Maintenance is $15,000.

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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 June 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).

New Zero Plus Position: SPX Iron Condor - 1242.29
On Friday 6/16, we sold 20 July SPX 1165 puts and bought 12 July SPX 1150 puts for a credit of about $.60 ($1,200). Then we sold 20 July SPX 1320 calls and bought 12 July SPX 1335 calls for a credit of about $.55 ($1,100).

Total net credit and profit potential of $1.15 ($2,300). The maximum profit range is 1165 to 1320 - 155 points. Maintenance is $30,000 - IF you have the right broker.

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CPTI SUMMER SEMINAR DATES!
AUGUST 12/13 - CHICAGO
SEPTEMBER 16/17 - PHOENIX

If you missed the CPTI Chicago seminar in April 2005, we're coming back - with more strategies and an even better track record than last year.

DO YOU HAVE PROFIT-ABILITY?
It's always a challenge (and a pleasure) for me when I have a roomful of bright people who have a passion for, and are excited about, 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 Chicago. Contact me and I'll call you with all the details.

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. Our CPTI seminars are limited to ONLY 25 ATTENDEES.

The San Francisco 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!

40 OUT OF 43 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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