Option Investor
Updates

NOW FOR OUR QUICKIES

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A BUSY THURSDAY -

The market continued down - much to the joy of those who were starting to get nervous about our short September 750 calls. At 706.47, we have our cushion back. Those of you who are still nervous can close out the spread for just $.20. If not, just hang on and enjoy the ride.

The market coming down was also nice because the volatility continued to climb. A little more premium started to appear. When more premium appears, magically so do some trading opportunities. We took advantage of the extra premium and put on what looks to be a pretty safe Iron Condor on the SPX.

First, I sent out a post suggesting the 1210/1195 bull put spread for $.80. Those who acted quickly got filled without a whole lot of trouble. There was a lot of volume on those strikes and I suspect we were responsible for a nice chunk of it.

Then, about 45 minutes later, the market had been slowly rising. I suggested a 1365/1380 bear call spread for a $.60 credit. Well, we got lucky - at least some traders did. No sooner than I sent out the post, but the SPX bounced up and stayed there for a while. Many alert CPTI traders took advantage of the opportunity to get the bear call spread filled at $.80. That's $.20 more than the suggested trade.

There are still a bunch of readers who blindly put in the trade at $.60, even after the market had risen - just because it was sent out that way. They invariably get filled at $.60 and pat themselves on the back. They figure they've accomplished something. That's the difference between a "trader" and a "skilled trader." Which are you? Wouldn't that extra $240 feel good in YOUR pocket? Where do you suppose you can learn some of these skills? Take a wild guess.

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READY FOR A FEW QUICKIES?
Remember, these trades are NOT official CPTI portfolio trades. They can be dangerous and should only be traded by experienced traders and skilled traders who can pay attention to the positions. Sometimes these work out and sometimes they don't. If you don't know what you're doing, it can cost you - and usually does. I don't trade these quickies.

September Quickie #1 - SPX Iron Condor
Sell 10 Sept. SPX 1275 puts - SZPUO
Buy 10 Sept. SPX 1265 puts - SZPUM
Credit of about $.75 ($750)

Sell 10 Sept. SPX 1315 calls - SXYIC
Buy 10 Sept. SPX 1325 calls - SXYIE
Credit of about $.75 ($750)

Total net credit and profit potential of $1.50 ($1,500). Maximum profit range is 1275 to 1315. Maintenance is $10,000 - IF you have the right broker.

September Quickie #2 - RUT Iron Condor
Sell 10 Sept. RUT 670 puts - RUYUN
Buy 10 Sept. RUT 660 puts - RUYUL
Credit of about $.75 ($750)

Sell 10 Sept. RUT 730 calls - RUTIF
Buy 10 Sept. RUT 740 calls - RUTIH
Credit of about $.80 ($800)

Total net credit and profit potential of $1.55 ($1,550). Maximum profit range is 670 to 730. Maintenance is $10,000 - IF you have the right broker.

There's always chaos when the market opens. Thursday's closing bids and asks of the strikes we're using are not really indicative of what you can anticipate in premium. Be flexible and creative. Adjust the number of contracts to your comfort level. And be careful. Remember, the money you save may be your own.

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FILLING UP NICELY - OUR Nov. 11/12 - Ft. Lauderdale CPTI SEMINAR
Don't procrastinate!! Adjust your schedules and plan to attend - only IF you want to improve your trading results. Contact me. I will personally call you to go over the details and answer all of your questions.

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SEPTEMBER CPTI PORTFOLIO POSITIONS
CPTI September Position #1 - SPX - Bull Put Spread - 1294.02
On Monday, August 7th, with the SPX at about 1280, we sold 12 SPX September 1190 puts and bought 12 SPX September 1175 puts for a credit of $.70 ($840). Maintenance is $18,000. I'll be looking for an opportunity to put on a bear call spread to complete the Iron Condor.

CPTI September Position #2 - RUT - Iron Condor - 706.47
On Thursday, August 10th, with the RUT at about 686, we sold 15 RUT September 590 puts and bought 15 RUT September 580 puts for a credit of $.55 ($825). Then we sold 15 September RUT 750 calls and bought 15 September 760 calls for a credit of $.50 ($750). Net credit and profit potential of $1.05 ($1,575). Maximum profit range is 590 to 750. Maintenance is $15,000.

CPTI September Position #3 - RUT - Iron Condor - 706.47
On Thursday, August 17th, with the RUT at about 708, we sold 15 September RUT 640 puts and bought 15 September RUT 630 puts for a credit of $.45 ($675). Then we sold 15 September RUT 760 calls and bought 15 September RUT calls for a credit limit of $.80 ($1,200). Net credit and profit potential of $1.25 ($1,875). Maximum profit range is 640 to 760. Maintenance is $15,000.

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CPTI October Position #1 - RUT - Iron Condor - 706.47
With the RUT at about 708, we sold 20 October RUT 610 puts and bought 20 October RUT 600 puts for a credit of about $.50 ($1,000). Then we sold 15 October RUT 790 calls and bought 15 October RUT 800 calls for a credit of about $.60 ($900). Our total net credit and profit potential is $1.10 ($1,900). Maximum profit range of 610 to 790 -- 180 points!! Maintenance is $20,000 -- IF you have the right broker.

CPTI October Position #2 - SPX - Iron Condor - 1294.02
On 9/7, with the SPX about 1295, we sold 12 October SPX 1210 puts and bought 12 October 1195 puts for a credit of $.80 ($960). Then we sold 12 October SPX 1365 calls and bought 12 October 1380 calls for a credit of $.60 ($720). Our total net credit and profit potential is $1.40 ($1,960). Maximum profit range of 1210 to 1365 - 150 points. Maintenance is $18,000 - 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 August RUT Iron Condor position expired worthless - according to plan. We can now officially add another $2,300 of premium to our cash stash. We have now generated $47,250 ($44,950 + $2,300).

October Zero Plus Position: RUT Iron Condor - 706.47
With the RUT at about 708, we sold 40 October RUT 610 puts and bought 40 October RUT 600 puts for a credit of about $.50 ($2,000). Then we sold 30 October RUT 790 calls and bought 30 October RUT 800 calls for a credit of about $.60 ($1,800). Our total net credit and profit potential is $1.10 ($3,800). Maximum profit range of 610 to 790 -- 180 points!! Maintenance is $40,000 -- IF you have the right broker.


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THE NEXT CPTI SEMINAR!
NOVEMBER 11/12 - FT. LAUDERDALE

Don't put off making your 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 Ft. Lauderdale. Contact me and I'll call you with all the details.

Are you a SERIOUS options trader? Do 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. Remember, if you attend one of my CPTI seminars, you are entitled to RETAKE the seminar a SECOND TIME at NO CHARGE!

42 OUT OF 45 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: 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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