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FINALLY!! 47 OUT OF 50 PROFITABLE MONTHS . . . AND COUNTING

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FINALLY!! 47 OUT OF 50 PROFITABLE MONTHS . . . AND COUNTING

Piece of cake. We didn't even break a sweat this month - although the five week January cycle seemed to drag on and on and on. We have $3,360 George Washingtons to show for our patience. That's a nice piece of change to pocket for essentially being a spectator for five weeks. Another 100% profitable month for our Couch Potato Trading Institute portfolio, another notch on our gun. That's 47 out of 50 profitable months . . . and the beat goes on.

Before we get too carried away, let's keep in mind that, one of these days, we're going to get nailed. But, since we have learned to control our risk (when to GTFO), we're ready for anything. Remember, we need to take the macro view of our trading results.

There weren't any huge surprise moves in the Friday settlement numbers. The SPX and RUT actually settled within a few points of Thursday's close - not that it would have made any difference this month. We were about as safe as you can get.

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A Time For Celebration
So, how will you celebrate this month's profits? What does a couch potato do for a good time (without getting arrested)? What gets us up off our beloved couch and motivates us to spend a few of those dollars.

Here, in metro-Detroit's 19-degree temperatures, Lydia and I hopped into the car (well, maybe not "hopped." Couch potatoes don't hop - they shuffle) and went to a concert. Who did we see? Do you remember the British invasion? No, it wasn't the Beatles. They broke up a while back. No, it wasn't the Rolling Stones. I'll give you a hint: "Mrs. Brown You've Got A Lovely Daughter." Another hint: Peter Noone. Give up? OK, it was Hermit's Hermits.

Yes, that's the name of a real group - and they had a boatload of hits back in the 1960s - all catchy as hell. In another life, I was an oldies DJ. So yes, I'm prejudiced toward the old music - back in the days when you could understand all the words - when the songs were rated PG and you could sing along. No crotch grabbing (except maybe after the concert) or four letter words - just sweet lyrics, a catchy tune you'd be humming hours later.

How do you celebrate? Food? Entertainment? A new plasma TV? A new couch? A new sweatshirt? A new car? Let me know. You can tell me. You know your secrets are safe with me.

You might even treat yourself to a CPTI seminar. The knowledge you get will help provide for many future celebrations. Contact me for details.

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Beginning The March Into March
On Friday, we started dipping our toes into the March expiration cycle (only a four week cycle, whew!). It may seem like a bit early, but we can't necessarily wait for the premium to come to us. There's only a little out there. We have a choice of being exposed for an extra week or two, or doing nothing - and you good folks aren't paying your $75 per month to do nothing.

We started with 20 contracts of the 700/690 March RUT 700/690 bull put spread for $.65. Over 1,300 contracts were traded on both options, so I know many CPTIers were filled. We weren't responsible for all 1,300 contracts traded, but a big chunk of them were ours.

I'll be watching for more opportunities for us in March. I still have a feeling the market is going to roll over, but it's taking its time making up its mind. I hesitate to play my cards until the market reveals its hand.

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Congratulations, You Got The Bear
For the record, this month our daredevil Quickie players are all smiles. Both Quickie positions expired worthless and traders got to keep about $7,100 (based on the number of contracts in the January 11th posting). When you go into dangerous areas hunting for big Quickie premium, sometimes you get the bear -- and sometimes the bear gets you. This month, you got the bear.

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TRACKING CPTI PORTFOLIO RESULTS
We've just completed the second month (January) of CPTI tracking year number five. Once again, the market continued its up move, but, we were cautious, we ended up with a nice profit. We've now been profitable for 47 OUT OF THE LAST 50 months - a record we are be VERY proud of. Our profit for the second month of our fifth year was $3,360. Thus far, in our fifth tracking year, we've accumulated $6,460.

RECAP OF JANUARY POSITIONS
(See Position Details in January Summary Below)
RUT Bull Put Spread - PROFIT: $1,000
SPX Iron Condor - PROFIT: $1,560
OEX Bull Put Spread - PROFIT: $800
TOTAL JANUARY PROFITS: $3,360

January Settlement Numbers:
S&P 500: $SET - 1427.59
Russell: $RLS - 777.77
S&P 100: OEX - 665.38
MID: MIV - 810.04

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SUMMARY OF JANUARY CPTI POSITIONS
CPTI January Position #1 - RUT - Bull Put Spread - 785.16
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). PROFIT: $1,000

CPTI January Position #2 - SPX - Iron Condor - 1430.50
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. PROFIT: $1,560

CPTI January Position #3 - OEX - Bull Put Spread - 665.38
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. PROFIT: $800

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CURRENT FEBRUARY CPTI PORTFOLIO POSITIONS
CPTI February Position #1 - RUT - Bull Put Spread - 785.16
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 - 1430.50
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 - 665.38
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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CURRENT MARCH CPTI PORTFOLIO POSITIONS
CPTI March Position #1 - RUT - Bull Put Spread - 785.16
We sold 20 March RUT 700 puts and bought 20 March RUT 690 puts for a credit of $.65 ($1,300). Our net credit and profit potential is $.65 ($1,300). 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.

ZERO PLUS POSITION -
Zero Plus - February Position - RUT - Bull Put Spread - 785.16
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

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!

47 OUT OF 50 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?

Note to the hundreds of former CPTI seminar graduates: There are no free retake spots remaining for Dallas and only 1 free retake spots remaining for Washington, DC. He who hesitates . . .

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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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