Option Investor
Updates

ANOTHER MARKET VACATION DAY ANNOUNCED

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When the market went down a bit last week, it apparently gave us a little head fake. The first part of the week, on really low volume, it moved back up. So much for my "feeling." Well, we're still in fine shape on all of our opening positions (both January & February).

In case you haven't heard, the Nasdaq announced they will close next Tuesday to mark the funeral of President Ford. The New York Stock Exchange is expected to follow suit. Apparently, Georgie W proclaimed Tuesday as a day of national mourning. We're in for a long weekend. Well, at least Tuesday will be another day the market doesn't go up.

That means we should pay close attention and watch for trading opportunities on Friday - before the little premium that is out there finds its way to the premium burial ground. You know it's OK to get creative and pick your own positions. It's allowed. You don't always have to wait for me to suggest something. Most of you have been reading this column for quite some time. Our trades are not that unusual. We use basically the same indicies month after month. The objective is to develop the skills of finding trades, executing trades, and knowing how to deal with things when they go wrong.

Some CPTI students have naturally good trading instincts. Others use trial and error while still others shorten the learning curve by attending a seminar. One way or the other, the objective is to learn so you can all do this all on your own.

The concept is basically simple. Go as far away from the underlying index as possible where you can take in a reasonable amount of premium - a minimum of $.40 on a ten-point spread and a minimum of $.60 on a 15-point spread. Don't fight the trend and don't get greedy.

It's about now that it would behoove us to take a look at possibly closing January positions to free up maintenance dollars for use elsewhere. Those with limited funds will want to make the most efficient use of your trading dollars.

Consider throwing out an order to unwind our January OEX 615/605 bull put spread for a nickel - IF you want to release funds. Why wait three more weeks for a nickel? You just might get filled.

Also, the January RUT 690/680 bull put spread may be ripe for closing for only a nickel. You might make them GTC (Good Till Cancel) orders - and review them daily. I

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EARLY BIRD SPECIAL A BIG HIT - Only Two Weeks Left
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, over 20 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 - 794.48
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 - 1424.73
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 - 663.64
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 - 794.48
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.

CPTI February Position #1 - SPX - Bull Put Spread - 1424.73
We sold 12 February SPX 1325 puts and bought 12 February SPX 1310 puts for a credit of $.70 ($840). Our net credit and profit potential is $.70 ($840). Maintenance is $18,000. 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).

NEW ZERO PLUS POSITION -
Zero Plus - February Position - RUT - Bull Put Spread - 794.48
We sold 25 February RUT 690 puts and bought 20 February RUT 680 puts for a credit of $.55 ($1,375). Our net credit and profit potential is $.55 ($1,375). Maintenance is $25,000. If the market stops trending, we'll look for a bear call spread to complete our Iron Condor.

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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. 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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