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HOW ARE WE DOING?

HAVING TROUBLE PRINTING?
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Tomorrow the markets will be closed. That's good news - one more day of market erosion, more premium that stays in our pockets. Had the market not turned back up again, I was going to experiment with a Siamese Condor or Short Guts position. But, as you know, those strategies are for a non-trending environment -- and this ain't that.

January has been a five week option cycle - and it seems like a lot longer than five weeks. I'll be very glad when it's over. How is the CPTI portfolio positioned for the last three trading days of the January cycle? It looks like profitable month #47 out of 50 is imminent.

1. January 690/680 bull put spread. No problem. We only have over 100 points of cushion. Many traders have bought back the 690 put for a nickel to free up some cash.

2. January SPX 1300/1285 bull put spread and 1470/1485 bear call spread - making up an iron condor. We have a 130 point cushion on the bottom side and 50 on the topside. Anything to worry about? I wouldn't, but if you're concerned, you'll likely be able to buy the 1470 call for a nickel on Thesday.

3. January OEX 615/605 bull put spread. No problem here either. This is another instance where many traders have already closed the position for a nickel to release maintenance dollars.

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February Positions
We've already established positions for February - two bull put spreads and an Iron Condor. For a few days last week the VIX was as high as 12.83. We had some volatility. We had some (not that much) extra premium show up in the option chain. That was nice, but it was short lived. As the market moved up, the volatility disappeared - along with our premium. The VIX is back down to anemic levels - at 10.15. Unless something dramatic happens in the next few days, we're probably done for February as far as new positions are concerned.

Our two February bull put spreads are in great shape. In our February SPX Iron Condor, we still have a 45-point cushion on the bear call spread. The market looks like it wants to continue up. We'll keep an eye on it. At least February is only a four-week cycle.

March Positions
Not quite yet. But I'll be watching for opportunities. You never know . . .

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EARLY BIRD SPECIAL - ONLY 2 DAYS LEFT TO SAVE $100
For traders interested in attending either the Dallas seminar on March 10th & 11th or Washington, DC seminar, I offer you an "Early Bird Special." If you reserve your spot by 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 - 794.26
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 - 1430.73
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 - 665.67
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 - 794.26
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 - 1430.73
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 1490 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 - 665.67
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 - 794.26
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. My CPTI seminars are limited to ONLY 25 ATTENDEES. Remember, if you attend one CPTI seminar, 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. 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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