Option Investor
Updates

IT’S QUICKIE TIME - AGAIN

HAVING TROUBLE PRINTING?
Printer friendly version

IT'S QUICKIE TIME - AGAIN

It's that time of the month again - when I toss out some short term trade ideas and try to bring in some profit in about a one-week time frame. That's why I call them "quickies." If it works out, it's like getting the same reward without all the conversation and hand-holding.

The only problem is that the quickies are risky. You have a higher probability of getting caught - and the punishment can be costly. That's why I don't recommend that inexperienced traders try the quickies. You should have a high risk tolerance, the skill to exit the trades if necessary and the flexibility to monitor the trades. Our quickie trades have worked out pretty well the last few months. But the quickies are always tricky and dangerous. That being said, let's explore some possibilities.

April Quickie #1 - SPX Iron Condor - 1447.80

Sell 12 April SPX 1420 puts - SXZPD
Buy 12 April SPX 1405 puts - SXZPA
Credit of about $.80 ($960)

Sell 12 April SPX 1465 calls - SXZDM
Buy 12 April SPX 1480 calls - SXZDP
Credit of about $.60 ($720)



Total net credit of about $1.40 ($1,680). Maximum profit range is 1420 to 1465. Maintenance is $18,000.


April Quickie #1 - RUT Iron Condor - 815.05
Sell 20 April RUT 800 puts - RUTPS
Buy 20 April RUT 790 puts - RUTPR
Credit of about $.90 ($1,800)

Sell 20 April RUT 830 calls - RUZDF
Buy 20 April RUT 840 calls - RUZDH
Credit of about $.60 ($1,200)



Total net credit of about $1.50 ($3,000). Maximum profit range is 800 to 830. Maintenance is $20,000. This is a particularly aggressive trade. The max profit range is only 30 points. Be very careful and recognize that the market is moving in big chunks lately.

As always, the quickies are not official CPTI trades. Make sure that you double check your option symbols before you place any trades.

Siamese Condor Trade Update
After four days of market churning, the XEO is at 662.38 - a pretty good spot, at least for the moment. Remember, we took in about $9.40 per contract. Let's check and see how much it would cost us to close our position - based on Thursday's closing prices.

We could likely buy back the 660 call for about $5.10 and buy back the 660 put for about $2.80 - a total of $7.90. If we were able to do that, we could lock in a profit of $1.50 per contract. We would also still own the long 625 put and 695 call which, at the moment, don't have any real value. But, it the market moves big in either direction, we might get an additional $.15 or $.20. Think of them as lottery tickets.

Is $1.50 per contract enough for you? It's your decision. We'll keep watching. Hopefully, the market won't go nuts and we'll get a bigger chunk of time erosion over the weekend. Now you know how to calculate the bottom line. Have fun and good luck.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

ONLY 4 SPOTS LEFT FOR LAS VEGAS CPTI SEMINAR
The June 2 & 3 Las Vegas two-day advanced seminar is filling up fast. There are only four spots remaining. Las Vegas will likely sell out soon. Don't be left out. Reserve your spot for the Las Vegas June 2nd & 3rd seminar today!

Join the family of over 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.

Due to a cancellation, one spot has become available for the Washington DC seminar on April 21st & 22nd. If you're interested, let me know as soon as possible.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

CURRENT APRIL CPTI PORTFOLIO POSITIONS
CPTI April Position #1 - RUT - Iron Condor - 815.05
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 - 662.38

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 - 866.10

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.

CPTI April Position #4 - SPX - Iron Condor - 1447.80

We sold 12 April SPX 1315 puts and bought 12 April SPX 1300 puts for a credit of $.65. Then we 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.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

CURRENT MAY CPTI PORTFOLIO POSITIONS
CPTI May Position #1 - SPX - Iron Condor - 1447.80

On 3/28, with the SPX at about 1419, we sold 12 May SPX 1300 puts and bought 12 May SPX 1285 puts for a credit of $.70. Then we sold 12 May SPX 1505 calls and bought 12 May SPX 1520 calls for a credit of $.70. Our net credit and profit potential is $1.40 ($1,680). Our maximum profit range is 1300 to 1505. Our total maintenance is $18,000.

CPTI May Position #2 - RUT - Iron Condor - 815.05

We sold 20 May RUT 710 puts and bought 20 May RUT 700 puts for a credit of $.45 ($900). Then, we sold 20 May RUT 870 calls and bought 20 May 880 calls for a credit of $.60 ($1,200). Our potential profit is $2,100. Maintenance is $20,000.

CPTI May Position #3 - OEX - Bull Put Spread - 662.38

We sold 20 May OEX 615 puts and bought 20 May OEX 605 puts for a credit of $.45 ($900). Our potential profit is $900. Maintenance is $20,000.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

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 - SPX Iron Condor - 1447.80

We sold 12 April SPX 1315 puts and bought 12 April SPX 1300 puts for a credit of $.65. Then se sold 18 April SPX 1470 calls and bought 18 April SPX 1485 calls for a credit of $.65. Our net credit and profit potential is $1.30 ($2,340). Our total maintenance is $27,000.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

CPTI SEMINAR SCHEDULE!
Las Vegas, NV - June 2 & 3

Washington, DC - April 21 & 22 - SOLD OUT!!

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 to 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, 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. You'll have a two-day experience that you'll remember, and profit from, for a lifetime. I limit our CPTI seminars to ONLY 25 ATTENDEES. And, as a bonus, if you attend one of my CPTI seminars, you are entitled to RETAKE the seminar a SECOND TIME at NO CHARGE!

49 OUT OF 52 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. 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?

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

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

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

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.



Orders to purchase or sell securities through your account with OptionsHouse, Inc., an independent registered broker-dealer ("OptionsHouse"), shall be accepted and executed solely by OptionsHouse, subject to the terms and conditions of your individual account agreement with OptionsHouse. OptionsHouse makes no investment recommendations and does not provide financial, tax or legal advice. All inquiries regarding your OptionsHouse account, including any disputes or trading errors, should be directed to OptionsHouse. Option Investor, Inc is not a registered broker-dealer and is not in the business of transacting trades. Furthermore, Option Investor, Inc is not a registered investment adviser, does not provide financial, tax or legal advice, and is not recommending that you buy or sell any particular security. OptionsHouse has made its services available to you via Option Investor, Inc as a courtesy. OptionsHouse and Option Investor, Inc are separate and unrelated entities. OptionsHouse is not affiliated with and does not endorse or warrant the products or services of Option Investor, Inc.

Couch Potato Trader Updates Archives