Option Investor
Updates

FOLLOW ME TO THE BANK

HAVING TROUBLE PRINTING?
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- AGAIN!

Monday the markets are closed. That will give us a chance to pull up our brokerage account on our trusty computer and see that all of our February CPTI portfolio positions expired worthless (but we already knew that, didn't we?). We can look at the new account balance and remind ourselves that we really know what the hell we're doing (at least most of the time). You must admit, though, adding up profits never gets boring. 48 profitable months out of 51 sure has a nice ring to it. We generated $3,640 for the February option cycle. That ain't chopped liver.

I'm finding a good use for the profits these days. I had a blood test about a month ago and the results were off the charts. According to the numbers, this couch potato was one milkshake away from a coma. That's not good. It's hard to trade when you're in a coma - among other things. My clients and subscribers would be upset - and likely my family too. The golden goose was almost cooked. Now I can't even eat goose (not that I would anyway).

Rumors of my potential demise were grossly exaggerated and premature. For the past month I've been on a strict diet of things that have no taste whatsoever. Fortunately, Lydia is a supremely talented cook. She knows how to combine ingredients to make some exceptionally tasty sauces (within the dietary guidelines) that have made this stuff palatable - and in some cases pretty good. I never knew there were so many kinds of tasteless fish in the world. I'm starting to think they should feed these farm raised fish a little barbeque sauce. That would save a lot of effort and make it a lot more tasty. I have self-discipline in my trading. I suppose I can do it with my food consumption.

Hell, I was impressed with the guy who came up with the idea of putting peanut butter and jelly in the same jar (Goobers). I love creative thinkers.

I'm actually getting used to it. But, I'm finding that eating healthy is a lot more expensive than $1 double cheeseburgers and $5 large pepperoni pizzas. Apparently, it's a lot more difficult to take carbohydrates, sugar and sodium out of things than it is to put them into things. So, I have to keep generating profits or die. I've actually lost about 12 pounds in the last month. They're around here somewhere, but I can't seem to locate them.

They now want me to exercise, too. That may be pushing the envelope. I made a commitment to power walk from the couch to the refrigerator to get my 10-calorie sugar free Jello. Hey, it's a start.

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Quickies Yield Nice Profits

February was the second month in a row in which our Quickie trades were also 100% profitable. Those who played the Quickies and held on made an impressive $4,575 for a week's work - including a few sleepless nights early in the week.

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Daring To Enter April
We took our first step into the April cycle when we put on the RUT April 720/710 bull put spread. A number of CPTIers missed the trade on Friday because, shortly after I posted the trade, the market moved up and away. It took with it much of our premium. We're do for a serious pull back so there may be other opportunities to enter the trade. At this point, the 730/720 April RUT bull put spread looks reasonable for those of you who are impatient. Based on Friday's closing prices, the 730/720 bull put spread would have an 88 point cushion.

If you look at the April RUT option chain, you'll see that there was some action in the April 880/890 bear call spreads. Some of our team may have been completing their Iron Condors. How safe is it? Well, there's a 62-point cushion. Is that enough for nine weeks of market exposure? In the face of an uptrending market? A pullback will be coming, but when? Hopefully, it will happen sooner rather than later so it can do us some good.

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TRACKING CPTI PORTFOLIO RESULTS
We've just completed the third month (February) of CPTI tracking year number five. The market continued its up move, but, we were cautious, we ended up with a nice profit. We've now been profitable for 48 OUT OF THE LAST 51 months - a record we are be VERY proud of. Our profit for the third month of our fifth year was $3,640. Thus far, in our fifth tracking year, we've accumulated $10,100. ($6,460 + $3,640)

RECAP OF FEBRUARY POSITIONS
(See Position Details in February Summary Below)

RUT Bull Put Spread - PROFIT: $1,100
SPX Iron Condor - PROFIT: $1,740
OEX Bull Put Spread - PROFIT: $800

TOTAL FEBRUARY PROFITS: $3,640

February Settlement Numbers:
S&P 500: $SET - 1452.26
Russell: $RLS - 815.99
S&P 100: OEX - 668.84
MID: MIV - 857.05

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SUMMARY OF FEBRUARY CPTI PORTFOLIO POSITIONS
CPTI February Position #1 - RUT - Bull Put Spread - 818.15
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. Profit: $1,100.

CPTI February Position #1 - SPX - Iron Condor - 1455.54

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. Profit: $1,740.

CPTI February Position #3 - OEX - Bull Put Spread - 668.84

We sold 20 February OEX 615 puts and bought 20 February 605 puts for a credit of $.40 ($800). Maintenance is $20,000. Profit: $800.

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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 - 818.15
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 - 668.84

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 - 1455.54

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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CURRENT APRIL CPTI PORTFOLIO POSITIONS
CPTI April Position #1 - RUT - Bull Put Spread - 818.15
We sold 20 April RUT 720 puts and bought 20 April RUT 710 puts for a credit of $.45 ($900). Our potential profit is $900. Maintenance is $20,000. We'll be watching for an opportunity to complete the 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 $52,425 ($51,050 + $1,375).

ZERO PLUS POSITION -

Our February RUT bull put spread expired 100% worthless. We pocketed $1,375. I'll be looking for an April position and announce it in the near future.

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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. Send your phone number. 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!

48 OUT OF 51 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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