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TWO FOR TWO - 45 OUT OF 48!!

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Another month of 100% profitable trades and the beautiful "ka-ching-ing" of the cash register. It's getting tougher and tougher. Premiums are getting smaller and smaller. Good trades are getting more and more difficult to find. But, we still pocketed $3,300 on only two trades.

The limited opportunities are reflected in our returns. A lot more trades this past year consisted of only one credit spread - not putting on the opposite side of the iron condor. Why? Because the market has been trending up, and I've been reluctant to put bear call spreads on top of all of our bull put spreads.

There are some old time CPTI traders as well as newbies who love statistics. I like them too, but I'm not anal about it. Well, I brought out my trusty calculator and came up with some stats for this past year that you might find interesting.

Tracking Year: December 2005 to November 2006
Number of trades: 36
Iron Condors: 27
Bull Put Spreads: 9
Average Trades Per Month: 3
Profitable Trades: 33
Losing Trades: 3
Average Profitable Trade: $1,069.40
Average Losing Trade: $2,206.67
Profitable Months: 12
Losing Months: 0
Smallest Monthly Profit: $255
Largest Monthly Profit: $5,610
Average Monthly Profit: $3,492.50

At last week's Ft. Lauderdale seminar, one student said he had calculated my standard deviation at 1.3. I'm not sure what that means, but I have to admit to the deviate part.

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TRACKING CPTI PORTFOLIO RESULTS
We just completed the final month (November) of CPTI tracking year number four. Once again the market had an up move, but, after all was said and done, we ended up with a profit. We've now been profitable for 45 OUT OF THE LAST 48 months - a record we can be VERY proud of. Our total profit for the 12 months of our fourth tracking year is $41,910 ($38,610 + $3,300).

RECAP OF NOVEMBER POSITIONS
(See Position Details in November Summary Below)
RUT Iron Condor - PROFIT: $1,800
MID Bull Put Spread - LOSS: $1,500
TOTAL NOVEMBER PROFITS: $3,300

November Settlement Numbers:
MID - $MIV - 805.59 (Note MID settlement symbol for future reference)
RUT - $RLS - 790.37
SPX - $SET - 1394.31

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More December Trades?
I'm still looking for other December positions. Keep your eyes open. I may just come up with something. It ain't easy, out there.

In the meantime, we'll keep our eye on the December RUT 830/840 bear call spread. If the market keeps moving up, we may have to do a little tap dancing.

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Quickie Results
The SPX Iron Condor had a maximum profit range of 1365 to 1410. The SPX settled at 1394.31 making the trade 100% profitable, keeping the entire $2,240 in profit.

The hopium smoking traders who held onto the RUT Iron Condor were rewarded. The maximum profit range was 750 to 790. The RUT settled at 790.37 -- $.37 in the money. The potential profit was a healthy $3,150. Traders would have to give back $555, leaving a nice profit of $2,595.

I have mixed emotions about announcing the profit on the RUT quickie trade. There was just as good a chance that the RUT would have closed up 8 points and we'd be looking at a $12,000 loss instead of a $2,595 profit. The quickies are risky. Those who held on got lucky. They had a 50/50 chance of being profitable. As the saying goes, "sometimes you get the bear, sometimes the bear gets you."

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SUMMARY OF NOVEMBER CPTI PORTFOLIO POSITIONS
CPTI November Position #1 - RUT - Iron Condor - 788.47
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 - 805.73
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 $20,000Profit: $1,500.

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DECEMBER CPTI PORTFOLIO POSITION
CPTI December Position #1 - RUT - Iron Condor - 788.47

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. 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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YOU CAN'T ARGUE WITH SUCCESS -- RESERVE TODAY!

CPTI SEMINAR SCHEDULE!

December 2/3 - Los Angeles

There are still spots left for my Los Angeles 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!

45 OUT OF 48 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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