Option Investor
Updates

ASK AND YE SHALL RECEIVE

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We were asking for a pullback - and that's what we got. - if you call 17 points on the RUT a pullback. It's a good start. It looks like the market wants to come down a bit further, but there seems to be buyers waiting in the weeds. All in all, we're in pretty good shape - but there are still over two weeks to go. Don't go spending the premium just yet.

The results of the upcoming elections are projected to have some affect on the markets. Personally, all politicians annoy me. Politicians are a lot like diapers - they should be change for the same reason. Think about it.

In the meantime, yesterday (Wednesday) I posted a CPTI portfolio RUT position for December. Despite the lack of volatility and premium, it looked like a position that has a high probability of success.

Some CPTI students astutely pointed out that there are still 6+ weeks until December expiration. Did you ever notice how some people have a talent for expressing the obvious? Well, if we want to get some premium, we have to make a compromise. We are exposing ourselves a little longer to the market in exchange for the decent premium and acceptable cushions.

In Wednesday's posting, I offered two choices for the bull put spread. The first choice (A) was for the conservative investor and the second choice (B) was for the slightly more aggressive investor.

Shortly after I posted the position, the market started down. Some CPTI students acted early and got filled on the 830/840 bear call spread, but many missed it. Hang in there, you may get another chance at the 830/840.

On the other hand, those who came late to the dance were able to get substantially more for the bull put spread due to the extra 10 points the RUT came down.

I wish more opportunities had presented themselves for November, but I can't justify putting suggested positions out in the newsletters that I wouldn't trade for myself or my clients.

We'll watch for more December positions. A pullback would be nice in that it would increase the volatility and increase our trading alternative.

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Ft. Lauderdale SOLD OUT!!

I'm proud to announce that Ft. Lauderdale is sold out. With two weeks left, you can put your name on a waiting list. Because life is unpredictable, there may be a cancellation. It happens.

What are you waiting for? Contact me and come experience a weekend you'll never forget. Then, go home with wisdom that will last you a lifetime. Spots are still available for our L.A. December seminar is La-La Land.

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NOVEMBER CPTI PORTFOLIO POSITIONS
CPTI November Position #1 - RUT - Iron Condor - 750.13
With the RUT at about 722, we sold 20 November RUT 620 puts and bought 20 November RUT 610 puts for a credit of about $.50 ($1,000). Then we sold 20 November RUT 800 calls and bought 20 November RUT 810 calls for a credit of about $.60 ($1,200). Our total net credit and profit potential is $1.10 ($2,200). Maximum profit range of 620 to 800 -- 180 points!! Maintenance is $20,000 -- IF you have the right broker.

CPTI November Position #2 - MID - Bull Put Spread - 775.04
With the MID at about 755, we sold 20 November MID 690 puts and bought 20 November 680 puts for a credit of $.75. Our potential profit is $1,500. Maintenance is $20,000. I'll keep on the lookout for a safe bear call spread to complete our Iron Condor. However, if I don't find an appropriate bear call spread, I'm perfectly content to sit with this bull put spread to expiration.

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DECEMBER CPTI PORTFOLIO POSITIONS
CPTI December Position #1 - RUT - Iron Condor - 750.13
With the RUT at about 760, we sold 20 December RUT 680 puts and bought 20 December RUT 670 puts for a credit of about $.45 ($900). Then we sold 20 December RUT 830 calls and bought 20 December RUT 840 calls for a credit of about $.60 ($1,200). Our total net credit and profit potential is $1.10 ($2,200). Maximum profit range of 680 to 830 -- 140 points!! Maintenance is only $20,000 -- IF you have the right broker.

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ONGOING STRATEGY - THE ZERO-PLUS Strategy
In the past, I outlined a strategy based on an initial investment of $100,000. At that time, $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 dramatically increased the number of contracts, even a little.

Our October RUT Iron Condor position expired worthless - according to plan. We can now officially add another $3,800 of premium to our cash stash. We have now generated $51,050 ($47,250 + $3,800).

October Zero Plus Position: RUT Iron Condor - PROFIT: $3,800
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 was 610 to 790 -- 180 points!!
Watch for a new Zero Plus position - COMING SOON!!

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CPTI SEMINAR SCHEDULE!
November 11/12 - Ft. Lauderdale -
SOLD OUT!
December 2/3 - Los Angeles

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.

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

44 OUT OF 47 PROFITABLE MONTHS!!
WANT TO ACHIEVE SUCCESS WITHOUT STRESS?
OF COURSE YOU DO!!
USE OUR CPTI WEALTH-BUILDING TECHNIQUES!

You should definitely attend 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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