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QUICKIE TIME & ON TO DALLAS

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QUICKIE TIME & ON TO DALLAS

It was a busy few days here in CPTI-land. Today we found a nice trade on the OEX - a 615/605 bull put spread for $.40. I received emails claiming there wasn't any premium in the spread. Those people haven't read our past columns and they certainly haven't attended my CPTI seminar where we learn how to find premium where there seemingly isn't any. Well, the premium was there and now it's in our pocket.

We now have three January positions. The VIX was up today 1.34 - always nice to see for us option sellers. It's too late for safe December plays, but if it continues to increase, it will mean more premium in the near future.

Let's check out a few quickie trades for December. They're not for everyone. Only skilled traders should attempt these trades - and traders who can monitor the trades. I don't necessarily trade the quickies. They are for the stout of heart, stout of wallet and stout of risk tolerance. Be careful, very careful. Plus, always double check the option symbols before you place the trade.

The first quickie is a Siamese Condor. If you don't understand the strategy, go through the archives and read about it again. Never try a strategy that you don't understand.

December Quickie #1 - OEX Siamese Condor - 650.52
Sell 6 December OEX 650 puts - OEYXJ
Buy 6 December OEX 620 puts - OEYXD
Credit of about $3.20

Sell 6 December OEX 650 calls - OEYLJ
Buy 6 December OEX 680 calls - OEYLP
Credit of about $4.85

Total net credit and profit potential of $8.05. We've created a profit range of 641.95 to $658.05. The closer OEX finishes to 650, the more money we'll make. The exit parameters are well defined as 641.95 on the bottom and 658.05 on the top. Maintenance is $18,000 - IF you have the right broker.

December Quickie #2 - RUT Iron Condor - 792.29
Sell 15 December RUT 770 puts - RUTXN
Buy 15 December RUT 760 puts - RUTXL
Credit of about $.90

Sell 15 December RUT 810 calls - RUZLB
Buy 15 December RUT 820 calls - RUZLD
Credit of about $1.15

Total net credit and profit potential of $2.05 ($3,075). Max profit range is 770 to 810. Maintenance is $15,000 - IF you have the right broker.

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Dallas Here We Come
Today, I also finalized the details for our next 2-day advanced seminar. It will be in Dallas, TX on March 10 & 11. I look forward to another great turnout and meeting more great people.

Save $100
For those interested in the Dallas seminar on March 10th & 11th, if you reserve your spot before January 15th, you will save $100. Give yourself a Christmas present.

Where Next?
I've narrowed down the locations for the next seminar (after Dallas) to Boson, MA or Washington DC on April 7th & 8th. What is your preference? Let me know which seminar you'd like to attend.

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CURRENT DECEMBER CPTI PORTFOLIO POSITIONS
CPTI December Position #1 - RUT - Iron Condor - 792.29
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 - 792.29
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 - 792.21
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 - Iron Condor - 1407.29
We sold 12 January SPX 1300 puts and bought 12 January SPX 1285 puts for a credit of $.70 ($840). Our net credit is $.70 ($840). We also sold 12 SPX January 1470 calls and bought 12 SPX January 1485 calls for a credit of $.60 ($720). Total net credit and profit potential of $1.30 ($1,560). Maintenance is $18,000. Maximum profit range is 1300 to 1470.

CPTI January Position #3 - OEX - Bull Put Spread - 650.52
We sold 20 January OEX 615 puts and bought 20 January 605 puts for a credit of $.40 ($800). Maintenance is $20,000. We'll keep watch for an appropriate bear call spread to complete our potential 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!
Dallas, TX - March 10 & 11

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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