Option Investor
Updates

DECEMBER "WHAT IF" PORTFOLIO TRADES

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I hope you all had a great Thanksgiving. Ours was excellent - especially with the new addition to our family (Lydia) who fits in so well. It reinforces everything I believe about awareness and opportunities -- having the ability to recognize them and the cajones to act upon them.

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Presented For Your Consideration . . .
Friday was a half day of market activity, but it was a welcome drop of over 5 points on the S&P 500. The RUT was down less than a point, but at least it didn't go up. Maybe it was a preview of things to come.

Possible New CPTI December Position
Positions have been hard to come by, for a variety of reasons. With three weeks left in the December cycle, we only have one official position. Let's look at a few possible scenarios for Monday - IF the market starts down. Keep in mind that these are "what if . . . " situations. We may or may not be able to get filled, but it doesn't cost anything to throw an order out there. One thing you can count on is that the RUT is going to be stingy about negotiations. Friday's closing price shows a $.30 natural. If we get lucky and get filled, these will be considered official CPTI Portfolio positions.

With the RUT consolidating around 790 for the past seven sessions, let's look for a chance to get into a Dec. 740/730 bull put spread. That would still leave us almost a 50 point cushion with less than three weeks to go.

Sell 20 December RUT 740 puts - RUTXH
Buy 20 December RUT 730 puts - RUTXF
Credit of about $.50 ($1,000)

Net credit and profit potential of about $.50 and $1,000. Maintenance will be $20,000. Remember to double check the option symbols before you place the order.

Let's see if we can find a "what if . . ." for the SPX. Check out the following. Will is happen? Who knows? It will take a pullback and a spike up in the VIX, so let's see what happens.

Sell 20 December SPX 1340 puts - SXYXH
Buy 20 December SPX 1330 puts - SXYSF
Credit of about $.50 ($1,000)

Net credit and profit potential of about $.50 and $1,000. Maintenance will be $20,000. Remember to double check the option symbols before you place the order.

The above potential trades are just guides. The planets would have to align just right for one or both of these to get filled - but stranger things have happened.

A Little About January
I'm tempted to start looking into January trades. January is one of those five week cycles, so it looks like there's a little premium there, but part of it is that extra week of market exposure.

On the RUT, you might check out the 700/690 bull put spread - and possibly even lower if we get a pullback.

On the SPX, you might check out the 1290/1275 bull put spread if we get a pullback. All kinds of things are possible. Keep an open mind. Be flexible, but be careful too!

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Remember Cowboys? They had rules to live by.
1. Don't squat with your spurs on.
2. Don't interfere with something that ain't bothering you none.
3. If you find yourself in a hole, the first thing to do is stop digging.
4. Always drink upstream from the herd.
5. Telling a man to git and making him do it are two entirely different propositions.
6. When you give a personal lesson in meanness to a critter or to a person don't be surprised if they learn their lesson.
7. If you're riding ahead of the herd, take a look back every now and then to make sure it's still back there.
8. The quickest way to double your money is to fold it over and put it back in your pocket.
9. If you get to thinking you're a person of some influence, try ordering somebody else's dog around.
10. And never, ever, miss a good opportunity to shut up.

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CURRENT DECEMBER CPTI PORTFOLIO POSITION
CPTI December Position #1 - RUT - Iron Condor - 792.28
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

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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.

Are you a SERIOUS options trader? Do 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!!
SUCCESS WITHOUT STRESS!
IT'S HERE FOR THE LEARNING -- USING 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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