Option Investor
Updates

A ONE DAY REPRIEVE

HAVING TROUBLE PRINTING?
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For what it's worth, it was nice to have at least a one-day reprieve from those 15-point up days. Our SPX position is precarious, to say the least. We have about a 10-point cushion between where the SPX is trading (1494.25) and our short 1505 May call - and that's the good news. The bad news is that there are still three weeks left to May expiration.

A number of traders have already closed their positions - a prudent thing to do. Today, the SPX bounced from positive to negative territory, giving traders plenty of opportunity to get out. Most exits reported to me were at about $6.50 with a few being as low as $6.00. Again, we took in $1.30 on the original Iron Condor position. A $6.50 exit would have translated into a $5.20 loss ($520 per contract) or $6,240.

Some traders have rolled into a June 1515/1530 bear call spread for break even (about $6.50) to give the SPX a chance to run its course and then retreat back down into our maximum profit range.

A few of these same traders also put on the 1430/1415 bull put spread, taking in a credit of $1.30. For those of you who are interested, based on Thursday's closing numbers, you could put on a more conservative June 1400/1385 bull put spread for about $.70.

Another Tact
Here's another choice to consider. Roll your May bear call spread into the 1535/1550 bear call spread for about $4.00 and increase the number of contracts from 12 to 18. Then, put on the June 1400/1385 bull put spread for $.70 on 18 contracts. That would even provide some about $400 of additional premium. Dare the SPX to get up that high and buy some time.

Tomorrow morning the GDP number will be announced. That's always good for a market reaction. It'll go a long way towards telling those of us who are still in the 1505/1520 bear call spread what we should do. Just bear in mind that my risk tolerance is likely greater than yours. If you need to close your position, do it!! What's your account size? Can it tolerate a $7-8 point loss if necessary - and still leave you plenty of capital to trade? How are you sleeping these days? Are you up at 3 a.m. watching Carleton Sheets and Bow-Flex infomercials because you can't get to sleep? These are difficult times and difficult choices.

NEW CPTI SEMINAR DATE - CHICAGO, July 27th & 28th
By special request, the largest number of CPTI students responded and want us to come back to the Windy City. So, check your schedules and contact me to reserve your spots. Take advantage of the EARLY BIRD SPECIAL. You'll SAVE $100, f your reservation is completed by June 15th.

I'm working on arranging a tour of the Chicago Board Of Exchange (CBOE) for attendees on the Friday prior to the seminar. Have you ever wondered how our orders are processed? Where do they go? How does the system work? Here's your chance to find out.

There are still two spots remaining for my June 2nd & 3rd Las Vegas seminar. It's always a great time in Vegas and a great learning experience. Don't wait too long. These spots will be gone soon.

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CURRENT MAY CPTI PORTFOLIO POSITIONS
CPTI May Position #1 - SPX - Iron Condor - 1494.25

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 - 833.80

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 - 683.66

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).

ZERO PLUS POSITION -

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

Closed out the Zero plus position this morning (Thursday) for $2.10. We had taken in $1.30, so we had a loss of $80 per contract (x 18 = $1,440).


Watch for new position coming soon.

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

Chicago, IL - July 27th & 28th

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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