Option Investor
Updates

HAPPY THANKSGIVING!!

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I have much to be thankful for - my wife (Lydia), my kids (Jill & Brian), my health - and the hundreds of CPTI seminar graduates and Option Investor subscribers.

One thing I've noticed and often question. Why do people wait for holidays for family to get together? It seems to me that, if you really care about someone, you'll find a way to get together (one way or another) on days other than holidays. There's no excuse any more - especially with the technology we have. If you don't see or interact with people between the holidays, it's because you don't want to. Think about it.

I'm also thankful that the market was closed today - one more day for premium to erode and one more day the market doesn't go up.

For What It's Worth
Life is good, but life is what you make it. Our trading discipline, in many ways, correlates to a large degree with the way you live your life. Those who put in the time and effort to learn how to trade are typically successful - because they know what it takes and are willing to do what is necessary.

I just watched Donald Trump and Robert Kiyosaki (interviewed on CNBC) tell people that to be truly successful you have to love what you do. Life is a challenge. It's more difficult to navigate through life for some than for others. But, you'll notice that those who take responsibility and are proactive are happier and more successful than those who are reactive.

Don't go through life with one lobe tied behind your back. If you do, life will feel like one long root canal (without drugs) - and you'll spend most of your time trying to blame someone (anyone) else for why things aren't working. Life is DIY, so don't FUBAR.

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The Bottom Line Stays The Same
Below is a new list of the statistics for our fourth tracking year of the CPTI portfolio with a few corrections. I, in error, was using the net profit figure as the gross profit. The bottom line is the same - NO LOSING MONTHS and MUCHO PROFIT!!

Tracking Year: December 2005 to November 2006
Number of trades: 36
Iron Condors: 27
Bull Put Spreads: 9
Average Trades / Month: 3
Profitable Trades: 33
Losing Trades: 3
Average Profitable Trade: $1,470.61
Average Losing Trade: $2,206.67
Profitable Months: 12
Losing Months: 0
Smallest Monthly Profit: $255
Largest Monthly Profit: $5,610
Average Monthly Net Profit: $3,492.50

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DECEMBER CPTI PORTFOLIO POSITION
CPTI December Position #1 - RUT - Iron Condor - 792.91
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).

New Zero Plus Position: To Be Announced
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!
December 2/3 - Los Angeles - Spots Available

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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