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A LITTLE QUICKIE ACTION

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Yesterday (Wednesday), we added our third position for the February cycle. I received a call from CPTI seminar grad, Prem, who spotted this opportunity on the OEX. We put on 20 contracts of the 615/605 bull put spread and took in a credit of $.40. ($800).

You Don't Ask, You Don't Get
I received email asking how I could ask for a $.40 credit limit when there was seemingly little apparent premium available. Sometimes you have to know how to read between the lines, like Prem does.

He looked at the natural (posted value) on the 615/605 bull put spread. It was $.10. Then, he calculated the bid/ask spread on the two options to be about $.35 each. He figured that, if he could negotiate $.15 out of the bid/ask spread of each option, that would total $.30. Then add the $.10 natural and he would receive a $.40 credit (the minimum we accept on a 10-point spread).

It was a bit aggressive, but I tried it myself and got filled. That's when I knew it was possible and sent out the recommendation. Over 1,000 contracts were traded on both the 615 & 605, so, apparently, a bunch of people were able to get filled. There are two morals to this story. First, the obvious moral, is that if you don't ask, you don't get. The second moral is that, if you don't know what to ask for, you certainly don't get. Do you get it?

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QUICKIES - If You Have The Money & Cojones & SKILL!
OK, troops. Here we go again. Below are a few quickie ideas. These are not for the meek. I, personally, do not trade them and they are not official CPTI positions. Trade these at your own risk. I recommend that only seasoned traders, who have the time to keep an eye on these positions, roll the dice here. When they work out, it's a nice quick piece of change. When they don't work out, well, you better know what to do with the cow pies hit the fan.

QUICKIE #1 - RUT Iron Condor - 788.45
Sell 20 January RUT 770 puts - RUTMN
Buy 20 January RUT 760 puts - RUTML
Credit limit of about $.70 ($1,400)

Sell 20 January RUT 800 calls - RUTAS
Buy 20 January RUT 810 calls - RUZAB
Credit limit of about $1.30 ($2,600)

Total net credit and potential profit of $2.00 ($4,000). Trading range is 30 points - 770 to 800. Maintenance is $20,000.

QUICKIE #2 - SPX Iron Condor - 1423.82
Sell 20 January SPX 1405 puts - SXZMA
Buy 20 January SPX 1395 puts - SXYMS
Credit limit of about $.70 ($1,400)

Sell 20 January SPX 1440 calls - SXZAH
Buy 20 January SPX 1450 calls - SXZAJ
Credit limit of about $.85 ($1,700)

Total net credit and profit potential of $1.55 ($3,100). Trading range is 35 points - 1405 to 1440. Maintenance is $20,000.

Notice I used 10 point spreads on the SPX. There are a few other alternatives. You can use 5 point, 10 point, and/or 15 point spreads on the SPX and take in decent premium. Use your discretion. The smaller the spread, the less the risk.

Don't forget to double check the option symbols before you place the trade. I DON'T CARE if your broker doesn't show the symbols on the order placement sheet. Make the effort to check them. Hell, it's your money. Do what you want, but don't come crying to me if there's a mix-up or you lose money. I sometimes make mistakes. Here's another rule to live by. It works for carpenters. It will work for us. Measure twice, cut once. Check symbols twice, submit once.

Good luck and be careful. If you don't have skill and risk tolerance, you might virtual trade these positions to get a little experience. It's like chicken soup. It can't hurt.

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Need to Release Some Maintenance Funds?
If you need to release some maintenance dollars, here are a few choices.
a) You can buy back the OEX January 615 put for a nickel. I did it today in some accounts (not the CPTI portfolio).
b) You can also buy back the RUT January 690 put for a nickel. I also did that in some accounts.
If you have something better to do with those funds, it doesn't make sense to wait for more than a week for that nickel to expire. Put those maintenance dollars to work for you.

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EARLY BIRD SPECIAL -
ONLY 4 DAYS LEFT TO SAVE $100

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. There's nothing to compare to the one-on-one instruction, the passion, the camaraderie, and the entire experience of my seminars.

So far, over 24 CPTI students have taken advantage of the "Early Bird Special." There are still spots left in both seminars. Don't wait too long. Seminar grad, Ed, will be attending the Dallas seminar. It will be his fourth time. He already understands the strategies. He keeps coming back for the experience.

Note to former CPTI seminar graduates: There are NO free retake spots remaining for Dallas and only 2 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 - 788.45
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 - 1423.82
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 - 661.64
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 - 788.45
We sold 20 February RUT 690 puts and bought 20 February RUT 680 puts for a credit of $.55 ($1,100). 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 - Iron Condor - 1423.82

We sold 12 February SPX 1325 puts and bought 12 February SPX 1310 puts for a credit of $.70 ($840). On Jan. 8, we also sold 12 February SPX 1475 calls and bought 12 February SPX calls for a credit of $.75 ($900). Our net credit and profit potential is $1.45 ($1,740). Maintenance is $18,000.

CPTI February Position #3 - OEX - Bull Put Spread - 661.64
We sold 20 February OEX 615 puts and bought 20 February 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).

ZERO PLUS POSITION -
Zero Plus - February Position - RUT - Bull Put Spread - 788.45
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

Do 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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