Option Investor
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A LITTLE FEBRUARY PORTFOLIO ACTION

HAVING TROUBLE PRINTING?
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Why wait till the last minute? Well, it's not as though we have a lot of choices. I found an interesting trade this afternoon for the February expiration cycle. We'll have to wait about eight weeks, but we have cable TV. Time will go by fast.

With the RUT at about 782, we sold 20 February RUT 690 puts and bought 20 February 680 puts for a credit of $.55 and a total potential profit of $1,100. That's a nice 92-point cushion, but it has to hold for a long time - eight weeks. I like our chances. That means it can withstand over a 10% correction and still be safely above our short strike price. About 600-700 contracts of the 690/680 bull put spread were filled today. A few shrewd CPTI students even managed to get $.40 for the 680/670 February bull put spread.

I get the feeling that the RUT may be topping out. It's a feeling - not based on any indicator. No science involved. Hell, it might be something I had for dinner. I don't know. But I'm going to watch for possible bear call spreads to complete our Iron Condor if the market behaves itself. For you aggressive traders, I'd be looking for something around the 860 level for the short strike in the bear call spread. There's nothing there now - based on Thursday's closing numbers. But, a volatility pop could provide an opportunity.

We're going to try to enter this position again tomorrow (Friday) with a 25-contract position for our ongoing Zero Plus strategy.

Another New February CPTI Position
A big "thank you" goes out to seminar grad Randy who emailed me this potential February SPX bull-put spread position late this afternoon. It looked pretty good. I checked it out and gave it a try. I got filled at $.70 at the end of the day, but was too late to broadcast the position to subscribers. However, Thursday's closing numbers indicate that the trade may very well be there in the morning. So, with the SPX at about 1418, lets try to:

Sell 12 February SPX 1325 puts - SXYNE
Buy 12 February SPX 1310 puts - SXYNB
Credit of about $.70 ($840)

The maintenance is $18,000 and we would have about a 93-point seminar. That's a lot of room for error. Hopefully, we won't need it all. Will it stand the test of time? We'll see. In the meantime, I'll watch for SPX February bear call spread opportunities. A lot can happen in eight weeks. Some of it may even be good.

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Early Bird Special A Big Hit
For traders interested in attending both the Dallas seminar on March 10th & 11th or Washington, DC seminar, I offer you an "Early Bird Special." If you reserve your spot prior to January 15th, you will SAVE $100. Give yourself a Christmas present. You deserve it. If you don't deserve it, give it to someone who does.

So far, 18 CPTI students have taken advantage of the "Early Bird Special." There are still spots left in both seminars. Don't wait too long. Note to former CPTI seminar graduates: There are only two free retake spots remaining for Dallas and three free retake spots remaining for Washington, DC. He who hesitates . . .

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CURRENT JANUARY CPTI PORTFOLIO POSITIONS
CPTI January Position #1 - RUT - Bull Put Spread - 782.90
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 - 1418.30
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 - 660.01

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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CURRENT FEBRUARY CPTI PORTFOLIO POSITIONS
CPTI February Position #1 - RUT - Bull Put Spread - 782.90
We sold 20 February RUT 690 puts and bought 20 February RUT 680 puts for a credit of $.55 ($1,000). Our net credit and profit potential is $.55 ($1,100). Maintenance is $20,000. If the market stops trending, 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).

See article above. We're trying for a 25 contract position on the Feb. RUT 690/680 bull put spread.

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CPTI SEMINAR SCHEDULE!
Dallas, TX - March 10 & 11

Washington, DC - April 21 & 22

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 - 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!

46 OUT OF 49 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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