Option Investor
Updates

A GOOD NIGHT'S SLEEP AHEAD

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Peace of mind - can you put a price tag on it? When I sent out the posting that we had been filled at $.20 on unwinding the RUT 800/810 bear call spread, I breathed a sigh of relief. It accomplished two things. 1 - it locked in a $.90 profit ($1,800), and; 2 - it meant I didn't have to worry about Friday opening settlement.

As it turned out, later in the day just before the market close, we might have been able to save a nickel and close out the bear call spread for $.15. But, I'll take the fill at $.20 any time. Mid-afternoon, shortly after I was notified of the fill, RUT started to move up - reaching over 793. I was taking no chances and even closed out some clients 810/820 positions for a nickel.

Obviously, the market came back down and spent a few minutes below 790. But, when the market is moving fast, you don't want to take that chance. All kind of weirdness can take place in the last hour or two of trading - plus the Friday morning settlement. It was more than I wanted to risk or deal with.

Another Profitable Month
I'm looking forward to writing about our 45th profitable month (out of 48), bringing our fourth year to a close. We only had two positions this month, but both were winners. Nothing new.

December
I've been looking for more trade possibilities. With the VIX hitting a 52 week low (10.04) today, premium is hard to find. If there is a downward spike in the next few days, maybe some premium will show up. Something might turn up. I'll keep you posted. The market can't go up forever.

Quickies
Don't look now, but we have a fighting chance of both of our quickies working out this month. We have about a 10-point cushion on our SPX Iron Condor. The RUT Iron Condor is right at-the-money. So, tomorrow morning's settlement will tell the tale. Good luck to those aggressive souls who are holding and smoking that "hopium."

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Signs That You Are An Alcoholic
You lose arguments with inanimate objects.
Your doctor finds traces of blood in your alcohol stream.
The traffic cop finds traces of oxygen in your breath-a-lizer test.
The back of your head keeps getting hit by the toilet seat.
Sincerely believe alcohol to be the elusive 5th food group.
You can focus better with one eye closed.
The parking lot seems to have moved while you were in the bar.
Hey, 5 beers has just as many calories as a burger...who needs dinner?
The whole bar says 'Hi' when you come in...

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NOVEMBER CPTI PORTFOLIO POSITIONS
CPTI November Position #1 - RUT - Iron Condor - 790.75
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!! Unwound 800/810 bear call spread for $.20. Profit: $1,800.

CPTI November Position #2 - MID - Bull Put Spread - 806.75
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 - 790.75
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 have 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!
December 2/3 - Los Angeles

There are still spots left for my CPTI 2-day advanced seminar. 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 need 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 Los Angeles. Contact me and I'll personally 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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