Option Investor
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Los Angeles is bright and sunny and I've made a roomful of new friends here at the CPTI seminar. Today we will go further in depth on the CPTI strategies, the psychological aspects of trading and exit strategies. It's going to be a good day.

On Friday, we got another spike-down. At one point, the SPX was actually down as much a 14 points. It didn't stay there long, but it was long enough to get a fill on the potential SPX January positions we discussed in Thursday night's newsletter.

Before the market opened, I put out an order for the 1300/1285 bull put spread for a credit of $.70. I wasn't going to be available to babysit the order because on Friday we were on our way to our seminar in Los Angeles. There was no real indication that the market would act as it did, but the market does a lot of surprising things.

As it turned out, if I had been available to work the order, I probably could have been able to get more credit than the $.70 -- but I'm not complaining. The SPX bounced back to finish down only 3. points. Notice that it didn't matter how long the SPX was 14 points down -- two minutes or two hours.

The other position discussed in Thursday's column was the SPX 1290/1275 bull put spread. Students at the Los Angeles seminar told me yesterday that they were able to get that spread filled at $.60. Excellent job -- and 10 points safer than my 1300/1285.

So, with another January position under our belt, the SPX option chain (Friday's closing numbers) shows us there may be an opportunity to put on a January bear call spread to complete our Iron Condor. With two more days of time erosion, there is certainly no guarantee this opportunity will be available on Monday, but it's worth a shot.

Sell 12 SPX January 1470 calls - SXZAN
Buy 12 SPX January 1485 calls - SXZAQ
Net credit of about $.65

Remember, you have to be flexible - keep an open mind With the two days of time erosions, you can also look at the 1465/1480 bear call spread for perhaps $.85. I would hesitate to go lower than 1465, because this upward trend may not be over yet and this time of year is traditionally somewhat bullish. If either of these positions become available, jump on it.

I'll also be looking to see if there is anything worthwhile available for our RUT January position. No official suggestions as yet.

From Thursday's Column:
"If we get another pullback, like the one on Monday, I'd be looking at the January SPX 1290/1275 bull put spread or even the 1300/1285. Try to get at least $.60. Remember, on a 15-point spread, we like to get about $.60. On a ten-point credit spread, our minimum acceptable premium credit is about $.40. Do a number of contracts that will make the trade worthwhile."

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CURRENT DECEMBER CPTI PORTFOLIO POSITION
CPTI December Position #1 - RUT - Iron Condor - 781.17
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 $1.05 ($2,100). Maximum profit range of 680 to 830 -- 140 points!! Maintenance is only $20,000 -- IF you have the right broker.

CPTI December Position #2 - RUT - Bull Put Spread - 781.17
We sold 20 December RUT 730 puts and bought 20 December RUT 720 puts for a credit of $.50 ($1,000). Our net credit and profit potential is $.50 ($1,000). Maintenance is $20,000. We'll look for a bear call spread, but don't hold your breath. With the market trending up, we're probably going to be satisfied with the bull put spread.

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CURRENT JANUARY CPTI PORTFOLIO POSITION
CPTI January Position #1 - RUT - Bull Put Spread - 781.17
We sold 20 January RUT 690 puts and bought 20 January RUT 680 puts for a credit of $.50 ($1,000). Our net credit and profit potential is $.50 ($1,000). Maintenance is $20,000. If the market stops trending, we'll look for a bear call spread to complete our Iron Condor.

CPTI January Position #2 - SPX - Bull Put Spread - 1396.71
We sold 12 January SPX 1300 puts and bought 12 January SPX puts for a credit of $.70 ($840). Our net credit and profit potential is $.70 ($840). Maintenance is $18,000. We'll look for a bear call spread to complete our Iron Condor.

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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!
New Date To Be Announced Soon

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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