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I’M SEEING GREEN AGAIN

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I'M SEEING GREEN AGAIN

Amidst the market chaos, it looks like we're going to be 100% profitable again. We are even positioned so that the Friday morning settlement numbers should not affect us at all. It sure is nice to have a cushion - and peace of mind. 48 out of 51 is only a settlement away.

The market seems to be taking one step back and two steps forward. We escaped this month, but next month (March) will be challenging, to say the least, if this trend continues.

Our positions are likely to expire worthless - which is our objective. I know, however, that some CPTI students and many seminar grads, closed out some positions a week or two ago for about a nickel to release maintenance dollars to use for our March positions.

Remember, we don't want to use the entire brokerage account for maintenance purposes. We need to keep some powder dry in case we have to close Iron Condor positions - or in case an irresistible opportunity presents itselves.

The "right" brokers have adjusted their maintenance release policies. They now release RUT and SPX maintenance in the morning if a trader's short strike prices are sufficiently far from the index's opening prices. Remember, brokers have different policies. Are you with the right broker?

Friday is typically one of my favorite trading days. Since I will have maintenance dollars to use, I'm going to be looking for positions. Though we're nine weeks away from April expiration, the anemic volatility has not left us a lot of choices. The market will be closed on Monday for President's Day. For our

The areas I will be looking are the RUT 720 puts and the SPX 1350 puts. That's just a starting point. These may be adjusted down or up, depending on what the market does. I'm hoping for a morning spike-down. That may provide us with a little more premium to work with.

If I find something I like, you'll be the first to know. Well, maybe the second. My "right broker" will be the first.

Quickie Update

For those daring souls who ventured into the land of the Quickies, things are looking pretty good. With the RUT at 815, it's right in the middle of the maximum profit range of 800 to 830. The SPX closed today at 1456 - only about nine points away from the top of the maximum profit range of 1435 to 1465. There probably won't be a problem, but stranger things have happened.

Skilled traders who don't like to leave the results in the hands of the option gods could have bought back the short SPX puts and calls for about $.30 and locked in about $1.45 of the $1.75 profit and a good night's sleep. But then, quickie traders are no stranger to risk - or they wouldn't be trading the quickies.

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CURRENT FEBRUARY CPTI PORTFOLIO POSITIONS
CPTI February Position #1 - RUT - Bull Put Spread - 815.43
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 - 1456.81

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 - 669.73

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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Only One Spot Open For Washington, Three Open Spots For Dallas

Currently, only one spot remains for Washington and five for Dallas. It's an experience you'll not forget and the knowledge will last a lifetime. What are you waiting for?

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CURRENT MARCH CPTI PORTFOLIO POSITIONS
CPTI March Position #1 - RUT - Iron Condor - 815.43
We sold 20 March RUT 700 puts and bought 20 March RUT 690 puts for a credit of $.65 ($1,300). Then, on 1/25, we sold 20 March RUT 850 calls and bought 20 RUT 860 calls for a net credit of $.45 ($900). Our net credit and profit potential is $1.10 ($2,200).

CPTI March Position #2 - OEX - Bull Put Spread - 669.73

We sold 20 March OEX 620 puts and bought 20 March 610 puts for a credit of $.45 ($900). Maintenance is $20,000. We'll keep watch for an appropriate bear call spread to complete our potential Iron Condor.

CPTI March Position #3 - SPX - Iron Condor - 1456.81

We sold 12 March SPX 1335 puts and bought 12 March 1320 puts for a credit of $.65 ($780). Then we sold 10 March 1490 calls and bought 10 March 1505 calls for a credit of $.80 ($800). Total net credit is $1,580. Maintenance is $18,000 - IF you have the right broker.

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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 - 815.43
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 or for Washington, DC. He who hesitates . . . is SOL.

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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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