Option Investor
Updates

AN EARLY QUICKIE

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I'll be traveling to Ft. Lauderdale tomorrow (Thursday) for this weekend's sold out CPTI seminar, so I'm sending out my Thursday column tonight instead.

The market did an about face after last week's short lived pullback and it looks like it's up up and away again. Cisco came out with good earnings and it's up about $1.80 in after market trading. So, the market will likely get a little excited for tomorrow morning's open.

We're still sitting with our 800/810 RUT November bear call spread and a 30-point cushion. In the past few days there were opportunities to unwind that position for as little as $.30. Based on Wednesday's closing prices, one can get out for $.55. I don't mean you necessarily should get out. It's a matter of personal preference.

While we wait for our November positions to hash themselves out, let's see what kind of quickies we can come up with for this month. Last month we got lucky and our quickie was completely profitable. Let's see if we can pick out a quickie or two for this month. Keep in mind that these quickies are risky trades. I, personally, don't trade them. Only experienced traders who have the time to monitor the trades - and who have the self discipline to exit the trade when necessary - should even consider these trades.

Note that, in searching for these trades, the VIX is 10.75. That means that in order to get some premium, our strikes will have to be even close than under other circumstances. Remember to adjust the contract size to your account size and risk tolerance.

NOVEMBER Quickie #1 - RUT Iron Condor - 769.84
Sell 15 November RUT 790 calls - RUTKR
Buy 15 November RUT 800 calls - RUTKS
Credit of about $1.00 ($1,500)

Sell 15 November RUT 750 puts - RUTWJ
Buy 15 November RUT 740 puts - RUTWH
Credit of about $1.10 ($1,650)

Total net credit of about $2.10 ($3,150). Maximum profit range of 750 to 790 (I wish it were a lot wider). Maintenance is $15,000.

NOVEMBER Quickie #2 - SPX Iron Condor - 1385.72
Sell 12 November SPX 1365 puts - SXYWM
Buy 12 November SPX 1350 puts - SXYWJ
Credit of about $.95 ($1,120)

Sell 12 November SPX 1410 calls - SXZKB
Buy 12 November SPX 1425 calls - SXZKE
Credit of about $.95 ($1,120)

Total net credit and profit potential of $2,240). Maximum profit range of 1365 to 1410. Maintenance is $18,000.

The prices will be a lot different tomorrow morning. Be careful. Don't get greedy and remember that these trades are not for everyone. You need skills, balls, and a large account. It's rare to find all three.

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More December Positions
I'm still looking for more December trades. They're tough to find - probably because I'm being conservative. The fact that there's very little premium doesn't help either.

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Ft. Lauderdale SOLD OUT! - L.A. Still Open
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 available for our L.A. December seminar in La-La Land.

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NOVEMBER CPTI PORTFOLIO POSITIONS
CPTI November Position #1 - RUT - Iron Condor - 769.84
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 - 791.61
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 POSITION
CPTI December Position #1 - RUT - Iron Condor - 769.84
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.

Our October RUT Iron Condor position expired worthless - according to plan. We've added 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!! (I hope)

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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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