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SEMINAR ANALYSIS YIELDS A NEW POSITION

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I'm writing this from our seminar room in Las Vegas. We've spent hours going over, step by step, various Iron Condor possibilities and have narrowed down the good trades to a few.

With the S&P at a ridiculously high 1536, we calculated that, mathematically, there is an 86.5% chance that the S&P will not close past 1625 at July expiration. Plus, we also determined that there is an even smaller chance - 91.0% -- that the S&P will settle below 1440 at July expiration. That looks like a pretty good position to me.

Now, we're currently sitting with a July SPX 1400/1385 bull put spread. We seemed to have caught that spread right at the bottom. Within minutes of the trade being suggested on 5/30, the market moved up pretty far. As a result, many CPTI traders got filled while a number of others did not.

So, for those of you who already have the position, you might be satisfied to simply put on the 1625/1640 bear call spread to complete the condor. Those of you who were not filled now have an opportunity to put on both sides of a new suggested position. So, take what you need from the information below and use it for your account as you see fit.


On 6/4, with the SPX trading at 1536, let's:
Sell 12 July SPX 1625 calls - SPBGE
Buy 12 July SPX 1640 calls - SPBGH

Credit of about $.70 ($840). You can start asking at $.70, but you may have to come down to $.65 or $.60 to get filled - depending on where the market opens on Monday.

Sell 12 July SPX 1440 puts - SXZSH
Buy 12 July SPX 1425 puts - SXZSE

Credit of about $.70 ($840). Remember, you can also be flexible when putting on this trade too. The credit limits are not etched in stone. They are simply guidelines - a place to start.

Our net credit is about $1.40 ($1,680). We've established a seemingly comfortable 185-point maximum profit range. The maintenance required is $18,000. These prices are based on Friday's closing numbers. As you well know, they will likely be different on Monday. So, pay attention, be flexible, and don't be greedy.

We've had a larger maximum profit range recently (200-points) not work out. But, if we're going to be consistent, we have to go with the probabilities. Also, keep in mind that we will likely be sitting with this position for seven weeks. July is a five-week (ughh!) option cycle and we still have two weeks left in our June cycle. Get comfortable. This uptrend has to stop sometime.

As (if) we come up with some other good trades at the seminar, I'll send them along in another posting.

Good luck and trade smart!

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CURRENT JUNE CPTI PORTFOLIO POSITIONS

CPTI June Position #1 - RUT - Bull Put Spread - 853.41

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 - 1536.34

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. On 5/31 closed out bear call spread for a loss of $10,180.

CPTI June Position #3 - RUT - Iron Condor - 853.41

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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CURRENT JULY CPTI PORTFOLIO POSITIONS

CPTI July Position #1 - SPX - Bull Put Spread - 1536.34

On 5/30, we sold 15 July SPX 1400 puts and bought 15 July SPX 1385 puts for a credit of $.70 ($1,050). Maintenance is $22,500. We will watch for an opportunity to add a bear call spread to this position to complete our Iron Condor.

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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 - 853.41

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 - 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!

51 OUT OF 54 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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