Option Investor
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MARKET PULLBACK? STAY TUNED . . .

HAVING TROUBLE PRINTING?
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MARKET PULLBACK? STAY TUNED . . .

Friday's pullback was nice, but not enough. Hopefully, it's a preview of things to come. Those who profess to know (but should know better) are projecting a further test of the recent run-up. The SP500, Dow and NASDAQ are extended, but their trends are still intact. Therefore, if these guys are right, the pullbacks are just new buying opportunities.

I will look at a further pullback, and premium spike, to put on another position or two - likely in the SPX, MID, or RUT (gee, what a surprise). In the meantime, I would hesitate to put on bear call spreads. A while back it looked like the market was rolling over and the trend was finished. That's what prompted me to put on bear call spreads on top of some of our bull put spreads. I was wrong, and we may live to regret it.

A roughly 24 point cushion on the RUT is hardly comfortable. Our 40 point SPX cushion is a little better, but doesn't inspire confidence either. So, we will be closely watching these levels and I'll post my thoughts if positions are seriously threatened.

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Thanks For The Emails
Last week I wrote about my new diet. Apparently, many of you are faced with similar cholesterol and glucose issues. I received dozens of supportive emails. Thank you all for your good wishes - and the recipes. I'm being diligent in this "change of (eating) life" project. My progress is encouraging. I have shaved 125 points from my cholesterol level and 208 points off my glucose level (no needles for this guy). Hell, I'm almost normal now (at least in some ways). I will continue on this path. My clients and many subscribers are encouraging me to get healthy - partially so I can continue making money for them.

Many of you said how lucky I was to have Lydia in my life. I know and I count my blessings every day.

Being a couch potato isn't quite as much fun as it used to be - especially since I shouldn't have potatoes anymore. Generating profits never ceases to be a pleasure, but it doesn't take the place of Marinelli's fettuccini alfredo or a bag of ranch Doritos and onion dip. Well, we can't have everything.

So, I'll continue with the protein drinks, a fist-full of vitamins every day and my quest for good health. It's actually feels good to exercise self-discipline. It feels good to see positive results and, when my kids say, "Dad, I'm proud of you." The look in their eyes -- priceless.

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NEW SEMINAR DATE - VEGAS, HERE WE COME!!
A year ago I presented a seminar in Las Vegas and that was a huge success. I just completed arrangements for us to return to the same venue on Saturday & Sunday, June 2nd & 3rd.

By popular demand, I'll be offering a $100 early-bird discount for those who complete their reservation by April 10th. Join the family of nearly 300 traders who have attended my two-day advanced seminars and emerged with the knowledge and skills that can make the difference between occasional success and consistent success.

There will be five retake spots available for the Las Vegas seminar. Here's a chance for those of you who didn't contact me on time for retake spots in Dallas or Washington. It's first come, first served.

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Stuck In Traffic . . .
A driver is stuck in a traffic jam on US 95 South, just outside of Washington, D.C. Nothing is moving north or south. Suddenly a man knocks on his window.

The driver rolls down his window and asks, "What happened? What's the hold up?"

"Terrorists have kidnapped Hillary Clinton, Ted Kennedy, Jesse Jackson, Al Sharpton and John Kerry. They are asking for a $100 million ransom. Otherwise, they are going to douse them with gasoline and set them on fire. We are going from car to car, taking up a collection."

The driver asks, "On average how much is everyone giving?"

"About a gallon."

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CURRENT MARCH CPTI PORTFOLIO POSITIONS
CPTI March Position #1 - RUT - Iron Condor - 826.64
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 - 664.01

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 - 1451.19

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 - 826.64
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.

CPTI April Position #2 - OEX - Bull Put Spread - 664.01

We sold 20 April OEX 630 puts and bought 20 April OEX 620 puts for a credit of $.45 ($900). Our potential profit is $900. Maintenance is $20,000.

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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 - SOLD OUT!!

Las Vegas, NV - June 2 & 3

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!

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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