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MANY CAUSES FOR CELEBRATION

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Two noteworthy events for this Sunday, July 23rd -- a day that will go down in infamy. They were predictable as far back as six months ago. The probability for the first event was 90%. The probability for the second was 100%. So, it's no big surprise. But, there's still a sense of accomplishment and fulfillment when concept becomes reality.

The events? Oh, 1 - that we would have another 100% profitable month for our CPTI portfolio; and 2 - that I would be getting married today. The Ripley people will be filming the wedding. I wouldn't have believed it either.

I'm a very lucky man. Some skeptics believe that about my trading, but 41 out of 44 profitable months don't lie. However, I'm talking about the new Mrs. Couch Potato. Who would have thought that, at this stage of my life, I could find someone to put up with me? She's amazing. She's kind, passionate, bright, funny, tolerant, and so much more. I know I'm going to learn a lot from her. I have already and this is just the beginning. That's what I mean when I say "lucky."

CPTI ANNIVERSARY
Time flies when you're having fun. This month (July) marks the four year anniversary of my writing for Option Investor. It's been interesting, to say the least. Many subscribers who have been around from the beginning (July, 2002) know the whole story. There were a few bumps in the road along the way. But, what long term relationship doesn't have a few?

Most important is that the Couch Potato Trader column is thriving. Subscribers and I have had fun and made impressive and consistent money along the way. I've met hundreds of CPTI students at my seminars - all of whom I consider friends. I continue to correspond with them, and mentor them, as they diligently work to achieve their goals. In the future, I hope to meet many more of you.

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TRACKING CPTI PORTFOLIO RESULTS
We just completed our ninth month (July) of CPTI tracking year number four. The market had some dramatic swings during the July cycle, but, it settled comfortably within our predetermined ranges - except for one position in which we had to take a loss. We've now been profitable for 41 OUT OF THE LAST 44 months - a record we can be VERY proud of. Our total profit for the first nine months of our fourth tracking year is $28,170 ($23,000 + $5,170).

RECAP OF JULY POSITIONS
(See Position Detail Summary Below)
SPX Bull Put Spread - PROFIT: $720
RUT Iron Condor - PROFIT: $1,485
SPX Iron Condor - PROFIT: $1,380
RUT Iron Condor - PROFIT: $1,575

TOTAL JUNE PROFITS: $5,170
Settlement Numbers:
SPX - $SET - 1251.72
RUT - $RLS - 681.80

NEW CPTI PORTFOLIO POSITION: RUT Iron Condor - 671.94
On Friday afternoon, 7/21, with the RUT at about 671, we sold 15 August 600 puts and bought 15 August RUT puts for a credit of about $.65 ($975). Then we sold 15 August RUT 740 calls and bought 15 August RUT 750 calls for a credit of about $.50 ($750).

EVEN OUR QUICKIES WERE WINNERS
When you're hot, you're hot. Both July "Quickie" positions were 100% profitable. The RUT Iron Condor (650/640 & 720/730) provided a nice $1,450 for ten contracts. The SPX Iron Condor (1270/1280 & 1215/1205) gave us a substantial profit. The Thursday night before we were going to put on the SPX Iron Condor the bid/ask prices were crazy. Whatever you were able to get, you got to keep.

Again, our quickies should typically be traded by more aggressive traders who can monitor the positions, have a higher risk tolerance, and have the self-discipline to get out when necessary.

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SUMMARY OF CPTI JULY POSITIONS
CPTI July Position #1 - SPX - Bull Put Spread - 1240.29
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. Profit: $720

CPTI July Position 2 - RUT - Iron Condor - 671.94
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. Profit: $1,485

CPTI July Position #3 - SPX Iron Condor - 1240.29
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. Profit: $1,380

CPTI July Position #4 - RUT Iron Condor - 671.94
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. Profit: $1,575

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CPTI CURRENT AUGUST POSITIONS
CPTI August Position #1 - SPX - Bull Put Spread - 1240.29
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 - 671.94
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 a credit of $.50 ($750). Total net credit of $1.15 ($1,725). Max profit range is 630 to 780. Maintenance is $15,000 - IF you have the right broker.

CPTI August Position #3 - SPX - Iron Condor - 1240.29
On 7/17, with the SPX at about 1235, we sold 12 August SPX 1125 puts and bought 12 August SPX 1110 puts for a credit of $.60 ($720). Then we sold 12 August SPX 1310 calls and bought 12 August SPX 1325 calls for a credit of about $.60 ($720). Total net credit and profit potential of $1.20 ($1,440). Max profit range is 1125 to 1310. Maintenance is $18,000.

CPTI August Position #4 - RUT Iron Condor - 671.94

On Friday afternoon, 7/21, with the RUT at about 671, we sold 15 August 600 puts and bought 15 August RUT puts for a credit of about $.65 ($975). Then we sold 15 August RUT 740 calls and bought 15 August RUT 750 calls for a credit of about $.50 ($750). Total net credit and profit potential is $1.15 ($1,720). Maximum profit range is 600 to 740. Maintenance is $15,000 - IF you have the right broker.

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ONGOING STRATEGY -- 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 July SPX Iron Condor position expired worthless - according to plan. We can now officially add the $2,300 of premium to our cash stash - to keep us well over the $40,000 mark. We have now generated $44,950 ($42,650 + $2,300).

NEW Zero Plus Position: RUT Iron Condor - 671.94
On Friday 7/21, with the RUT at about 671, we sold 20 August 600 puts and bought 20 August RUT puts for a credit of about $.65 ($1,300). Then we sold 20 August RUT 740 calls and bought 20 August RUT 750 calls for a credit of about $.50 ($1,000).

Total net credit and profit potential of $1.15 ($2,300). The maximum profit range is 600 to 740 - 140 points. Maintenance is $20,000 - IF you have the right broker.

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

CHICAGO SPOTS STILL AVAILABLE! DON'T WAIT!
Now you have two choices for which CPTI seminar you'd like to attend. Don't put off making the reservation. Airline tickets get more costly the closer you get to the event. If you really want to take your trading from a "hobby" to a potentially profitable "business," you'll want the information you'll learn at my CPTI seminar. You'll learn more than the "how to's" of trading our strategies. You'll learn a new lifestyle - and a nice lifestyle - one that can last a lifetime.

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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