Option Investor
Updates

HOW ARE WE DOING?

HAVING TROUBLE PRINTING?
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So far, so good. On cue, the last few days the market bounced up to where we are now in a safe range - at least for the March cycle. Let's enjoy our March profits. We'll deal with April if and when the time comes.

The only March position that was ever threatened by the downdraft was our OEX 620/610 bull put spread. The OEX broke 625 on Wednesday, but we stood firm and got the bounce we were looking for. We still have Friday's trading left to be concerned about. However, with the OEX at 636.74, there's a decent cushion and it's highly likely it'll finish above 620.

Tomorrow morning's settlement numbers will tell the tale for our Russell and S&P 500 Iron Condor positions. The RUT Iron Condor consists of the 700/690 bull put spread and the 850/860 bear call spread. The RUT closed at 1392.28 (up 7.93 today), giving us a 58-point cushion from the short call and a 92-point cushion to the short put. No problems there.

Our SPX Iron Condor consists of the 1335/1320 bull put spread and the 1490/1505 bear call spread. The SPX closed at 1392.28 (up 5.11 today), giving us a 98-point cushion to the short call and a 57-point cushion to the short put. No problems there either.

We apparently positioned ourselves pretty well for this March cycle. We were just waiting for the market to roll over. As a matter of fact, we had a few false alarms when it looked like the market had topped, but it reversed and went up to new highs. The volatility remained low for the most part and we had to expose ourselves to the market for a long time to get a reasonable amount of premium. But, it seems to be working out.

When the market spiked down last week and back down again earlier this week, it brought back fond memories of when we could put on our trades only about a month out. This week's April SPX Iron Condor was a perfect example. It was nice to have a choice of strikes and some decent money available. I put the trade out there over the weekend. Some traders put on the spreads separately and others as a whole. Both had degrees of success getting filled. One new subscriber was so totally confused on how we can suggest a position that showed a debit and recommend a credit. He's got a lot to learn, and, if he is willing to do his due diligence, he will learn. Hopefully, he will learn the strategy before putting on trades. As the police sergeant said every week on Hill Street Blues, "Be careful out there." It worked for awhile. But, even that show was cancelled. We don't want our traders, or their brokerage accounts, to be cancelled.

The dramatic market movement gave many traders the opportunity to take in some exceptional premium and go further down on the put side. I received emails talking about 1300/1285 trades that were filled for over $1.00. Some lowered the bear call spread a couple of strikes from 1470/14785 to 1460/1475. In this case, it's acceptable. If you look at the chart, you'll see the 52-week high is about 1460. Also, it was done out of necessity. When the market spiked, there was little, or no, premium left in the 1470/1485.

We can put on our Sunday's finest (clean sweats and socks - hey, it's not a wedding or a funeral) and prepare for this month's walk to the bank to deposit our profits. We'll go over the details on Sunday, but things look like our streak will continue with another 100% profitable month.

Keep the faith. April may be a challenge - but it's a challenge we'll be prepared for. I know I'm using more maintenance than usual, but adjust your contract size accordingly. Remember, money management is important. Keep some powder dry.

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After All This Time . . .
An elderly man suffered a massive heart attack. The family drove wildly to get him to the emergency room.

After what seemed like a very long wait, the E.R. Doctor appeared, wearing his scrubs and a long face. Sadly, he said, "I'm afraid he is brain-dead, but his heart is still beating."

"Oh, Dear God," cried his wife, her hands clasped against her cheeks with shock!!! "After all these years he's become a directional trader."

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VEGAS, HERE WE COME!!
My new June Vegas two-day advanced seminar is filling up fast. Traders are taking advantage of the $100 early-bird special and signing up two and three at a time. Washington is sold out. Las Vegas will likely follow suit. Don't be left out. Reserve your spot for the Las Vegas June 2nd & 3rd seminar today!

Join the family of nearly 300 traders who have attended my two-day advanced seminars and left with the knowledge and skills that can make the difference between occasional success and consistent success.

Sorry, there are no more retake spots remaining for the Las Vegas seminar.

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CURRENT MARCH CPTI PORTFOLIO POSITIONS
CPTI March Position #1 - RUT - Iron Condor - 783.61
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 - 636.71

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 - 1392.28

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 - Iron Condor - 783.61
We sold 20 April RUT 720 puts and bought 20 April RUT 710 puts for a credit of $.45 ($900). Then, we sold 20 April RUT 870 calls and bought 20 April 880 calls for a credit of $.50 ($1,000). Our potential profit is $1,900. Maintenance is $20,000 - IF you have the right broker.

CPTI April Position #2 - OEX - Bull Put Spread - 636.71

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.

CPTI April Position #3 - MID - Iron Condor - 828.44

We sold 20 April MID 800 puts and bought 20 April MID 790 puts for a credit of $.55 ($1,100). Then, we sold 20 April MID 900 calls and bought 20 April MID 910 calls and were filled at $.65 ($1,300). Our maximum profit range is 800 to 900. Maintenance is $20,000. Our potential profit is now $2,400. It will be great if this one works out.

CPTI April Position #4 - SPX - Iron Condor - 1392.28

We sold 12 April SPX 1315 puts and bought 12 April SPX 1300 puts for a credit of $.65. Then se sold 12 April SPX 1470 calls and bought 12 April SPX 1485 calls for a credit of $.65. Our net credit and profit potential is $1.30 ($1,560). Our total maintenance is $18,000.

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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).

NEW ZERO PLUS POSITION -

See above for a description of a new April Zero-Plus position. The only difference is that we're going to trade 18 contracts instead of the 12 contracts in the CPTI Portfolio position. That changes our maintenance requirement to $27,000. Our potential profit is about $2,340.

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CPTI SEMINAR SCHEDULE!
Dallas, TX - March 10 & 11 - SOLD OUT!!

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. Send me 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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