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A FAMILIAR SCENARIO

HAVING TROUBLE PRINTING?
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Here we are again. It's familiar territory - the night before the Friday morning settlement number. The only difference is that, this month, we're out of harm's way - at least for our remaining May positions.

Our OEX bull put spread has an 80 point cushion. However, as you should know, the OEX has American style options. So, the OEX won't settle until Friday's close. Our RUT Iron Condor has a nice cushion on both sides - 105 points on the put side and 55 on the call side.

Last month we had one of those outrageous Friday morning settlements - where the settlement number was higher than the index high of the day. It doesn't happen that often, but often enough to make grown men cry - especially grown men who hold close short strikes into the settlement.

I know there are some CPTIers who rolled up from the May 1505 bear call spread to the May 1525. You may have come out of this mess ahead of the game. Good luck. I probably would have taken the opportunity to get out at $.40. Good luck, one and all - to those who need it and to those who don't.

With the SPX at 1512, we're still in a precarious position with our rolled out June SPX Iron Condor. Our 1535/1550 bear call spread feels like we're laying on the tracks and the train is coming. About 23 points and a full four weeks remain till June expiration. It's going to be a long four weeks.

In the meantime, just another reminder that, if you're holding the May RUT Iron Condor, your broker should be releasing your maintenance dollars early on Friday. The RUT is sufficiently far from 815 that progressive brokers will release those bucks to you. The VIX is at 13.51 - sufficiently high to still offer trading opportunities for June. There are still 750/740 June RUT bull put spreads to be had if one so desires. Also, you can check out the SPX 1420/1405 bull put spreads for a little premium. I'm still too chicken to put on any more bear call spreads at this point in time.

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A Smile
A 2006 study found that the average American walks about 900 miles a year.
Another study found that Americans drink an average of 22 gallons of beer a year.
That means, on average, Americans get about 41 miles per gallon.
Not Bad...

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PISTONS ADVANCE TO EASTERN CONFERENCE FINALS. GO PISTONS!!

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ONE LAS VEGAS SEMINAR SPOT LEFT!!
There is still one spot remaining for my upcoming 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 - 815.64

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 - 695.16

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 - 815.64

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 - 1512.75

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 - 815.64

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 - 815.64

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!

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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