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ANOTHER TRIP TO THE BANK

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- 50 OUT OF 53

Wow!! What a settlement! We'll go along for a few months and have relatively mild Friday settlement numbers for our European index positions and then -- BOOM! It lulled us into a false sense of security. This was one of those expirations where it paid to close our your short call positions at Thursday's close if you were anywhere close to the short strike price.

At Thursday's close the SPX was at 1470.73. Friday morning's settlement number came out at 1485.57 -- almost 15 points higher! The settlement number was actually higher than the Friday's SPX trading high of 1484.74. Is that possible? Hell yes. It's possible and happens more than we like to see.

Here, at the Washington DC seminar, we've spend a good deal of time going through April's settlement numbers and explaining how something like this can happen. Fortunately, most students had closed out their short SPX call positions, although a few did not -- and paid a steep price.

The same scenario played out for the RUT. The settlement number was outrageous at $831.41 -- over 12 points above Thursday's close of 819.32. The highest the RUT traded on Friday was 829.43 -- another instance of the settlement number being higher than Friday's trading high. Wierd, but possible.

The MID closed Thursday at 871.92 and settled Friday morning at 879.59 -- also a significant pop up.

So, even though we're celebrating our 50th profitable month out of 53, we certainly recognize that a large number of traders got caught in an outrageous settlement. It's a tough choice on Thursday -- whether or not to close out a short position. The little voices in your ear are having one hell-of-an argument. The emotional voice is saying, "we're only five points away from the short strike. I'll chance it. It'll be fine. Besides, I waited seven weeks to earn this $1.25 premium. I don't want to pay $2.00 and take a $.75 loss after all that time."

The logical voice is saying, "these Friday settlement numbers can be dangerous. I have a five point cushion, but it's not enough. I'll just pay the $2.00, cover my ass and live to trade another day. A $.75 loss is not the end of the world. It's just part of the business.

Who wins? It all depends how many expensive lessons someone has learned. Those seem to be the only lessons people remember. Well, this month some people learned a few lessons -- lessons that I hope they remember the next time there's a decision to be made.

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TRACKING CPTI PORTFOLIO RESULTS
We've just completed the fifth month (April) of CPTI tracking year number five. The market continued its up move. But, we were well positioned and still ended up with another nice profit even though we had one losing position. We've now been profitable for 50 OUT OF THE 53 months - a record we are VERY proud of. Our profit for the fifth month of our fifth year was $2,440. Thus far, in our fifth tracking year, we've accumulated a tidy profit of $14,780 ($17,220 + $2,440).

RECAP OF MARCH POSITIONS

(See Position Details in March Summary Below)

RUT Iron Condor - PROFIT: $1,900

SPX Iron Condor - LOSS: $2,760

OEX Bull Put Spread - PROFIT: $900

MID Iron Condor - PROFIT: $2,400

TOTAL APRIL PROFITS: $2.440

April Settlement Numbers:

S&P 500: $SET - 1485.57

Russell: $RLS - 831.41

S&P 100: OEX - 633.94

MID: MIV - 879.59

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ONLY 3 SPOTS LEFT FOR LAS VEGAS CPTI SEMINAR
There are only hree 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.

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SUMMARY OF APRIL CPTI PORTFOLIO POSITIONS
CPTI April Position #1 - RUT - Iron Condor - 828.86
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). Profit: $1,900.

CPTI April Position #2 - OEX - Bull Put Spread - 680.82

We sold 20 April OEX 630 puts and bought 20 April OEX 620 puts for a credit of $.45 ($900). Profit: $900.

CPTI April Position #3 - MID - Iron Condor - 880.20

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). Profit: $2,400.

CPTI April Position #4 - SPX - Iron Condor - 1484.35

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). Loss: $2,760.

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CURRENT MAY CPTI PORTFOLIO POSITIONS
CPTI May Position #1 - SPX - Iron Condor - 1484.35

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 - 828,86

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 - 680.82

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.

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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 - SPX Iron Condor - 1414.35

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.

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CPTI SEMINAR SCHEDULE!
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 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!

50 OUT OF 53 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?

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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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