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HAPPY MOTHER'S DAY

HAVING TROUBLE PRINTING?
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The market giveth and the market taketh away. On Thursday, we thought we could see a light at the end of the tunnel when the SPX tumbled over 21 points. Then, on Friday, Larry, Moe & Curly broke open their piggy banks and started buying again. Stocks were less, but they didn't seem like they were on sale. For whatever reason, the SPX moved back up over 14 points. We're still about seven points better off than we were at Wednesday's close.

May Positions
Since we rolled our troubled SPX position into June, the other two May positions look solid. The OEX 615/605 bull put spread has a 75-point cushion. Again, you might want to close out the spread for a nickel if you want to release maintenance dollars.

Our May RUT Iron Condor has a 40-point cushion to the call side and a whopping 120-point cushion on the put side. But, there's still a week to go and the market, although choppy, looks like it might want to continue up. So, be alert - just in case.

Tracking The Quickies
For those of you who put on Thursday's quickies, maybe now you know what I mean about "risky." One day after placing the trade, a 25-point cushion on the RUT is now less than 12. A 25 point cushion on the SPX has been reduced a little more than nine. As I said on Thursday, it's going to be an exciting week.

SPX Support & Resistance -- Closed at 1505.85
Resistance:
The upper trendline of the channel at 1518
1520 from the September 2000 peak
1528 close, 1553 intraday from March 2000 all-time index peak

Support:
1500 from April 2000 peak
1496 is a peak from July 2000
The 18 day EMA at 1490
1487 is the late November to February up trendline
1475 from peaks in December 1999 and January 2000
The 50 day EMA at 1463
1461.57 is the February 2007 high.
1440 is the mid-January high
1439 is the March high
1432 is the December 2006 high
1425 is an interim high from November 1999
1410 is the 'hump' high
1408 is the November high

A Smile To Start The Week
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!!! "We've never had a Democrat in the family before"!!!

(Before you Democrats out there get bent out of shape, feel free to send me some Republican jokes. I'll be glad to run them - if they're clever.)

One More Thing . . . GO PISTONS!!!

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NEW CPTI SEMINAR DATE - CHICAGO, July 28th & 29th
By special request, we're coming back to the Windy City. So, clear your schedule and contact me ASAP to reserve your spot. Take advantage of the EARLY BIRD SPECIAL. You'll SAVE $100, f your reservation is completed by June 15th.

I'm arranging a tour of the Chicago Board Of Options Exchange (CBOE) for attendees on the Friday prior to the seminar for those who can make it. 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 first hand.

There is still one spot 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. This spot will be gone soon.

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CURRENT MAY CPTI PORTFOLIO POSITIONS
CPTI May Position #1 - RUT - Iron Condor - 829.54

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 #2 - OEX - Bull Put Spread - 690.04

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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CURRENT JUNE CPTI PORTFOLIO POSITIONS

CPTI June Position #1 - RUT - Bull Put Spread - 829.54

On 5/1, we sold 20 May RUT 720 puts and bought 20 May RUT 710 puts for a credit of $.50 ($1,000). Maintenance is $20,000. We will watch for an opportunity to add a bear call spread to this position to complete our Iron Condor.


CPTI June Position #2 - SPX - Iron Condor - 1505.85

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 was $1.40 ($1,680). Our maximum profit range is 1300 to 1505. Our total maintenance was $18,000.

On 5/3, with the SPX at about 1501, we rolled out our May position into June by buying back both spreads and establishing the 1535/1550 bear call spread and the 1410/1395 bull put spread for an additional credit of $380. We now have a profit potential of $2,060. Our maintenance is now $27,000. Our max profit range is now 1410 to 1535.

CPTI June Position #3 - RUT - Iron Condor - 829.54

On 5/7, we sold 20 June RUT 760 puts and bought 20 June RUT 750 puts for a credit of $.60 ($1,200). Then we sold 14 June 890 calls and bought 14 June 900 calls for a credit of $.50 ($700). Total potential profit is $1,900. Maximum profit range is 760 to 890. 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. Our new cash total is $49,610 ($51,050 - $1,440).

RUT Iron Condor - 829.54

On 5/7, we sold 25 June RUT 760 puts and bought 25 June RUT 750 puts for a credit of $.60 ($1,500). Then we sold 20 June 890 calls and bought 20 June 900 calls for a credit of $.50 ($1,000). Total potential profit is $2,500. Maximum profit range is 760 to 890. Maintenance is $25,000.

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

Chicago, IL - July 28th & 29th

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 Trader 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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