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IT'S QUICKIE TIME AGAIN

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QUICKIE TIME AGAIN

The market is moving in chunks now. The last three days, it's moved down significantly. It's like someone yelled "fire" in a theater and there is only one exit. It seems we were right about the pullback. It's just that our timing was off by about a week. Well, que sera sera. That's what makes this exciting - sometimes too exciting! We may have put on our SPX 1440/1425 a little prematurely. But, we'll deal with that in about 50 points.

I'm glad we took the opportunity on Monday to put on the 1625/1640 bear call spreads to top off our original 1400/1385 bull put spread as well as part of our new SPX Iron Condor.

It's quickie time again. This is the time of month when experienced traders throw caution to the wind and try a few risky one-week trades. The benefit is that, should things work out, you can realize a month's worth of profits in a week. The operative phrase hers is "should it work out." On a positive note, the VIX is over 17! Lots of premium out there. The question is - how do we get it into our pocket - and KEEP IT THERE?

These trades are risky and should not be tried by traders who cannot monitor them and who cannot afford to take the obvious risks. Again, these are not official CPTI portfolio trades. Have your exit strategies ready. You may very well need them.


June Quickie #1 - SPX Iron Condor - 1490.72
Sell 12 June SPX 1445 puts - SXZRI
Buy 12 June SPX 1430 puts - SXZRF
Credit of about $1.05 ($1,260)

Sell 12 June SPX 1530 calls - SXMFF
Buy 12 June SPX 1545 calls - SXMFI
Credit of about $.95 ($1,140)

Net credit and profit potential of $2.00 ($2,400). You have an 85-point maximum profit range (for one week) and the maintenance is $18,000.

June Quickie #2 - OEX Siamese Condor - 685.33
Sell 10 June OEX 685 puts - OEYRQ
Sell 10 June OEX 685 calls - OEYFQ
Net credit of about $13.10 ($13,100)

Buy 10 June OEX 655 puts - OEYRK
Buy 10 June OEX 715 calls - OEZFC

Net debit of about $1.30 ($1,300)

Total net credit of $11.80 ($11,800). The closer the OEX settles near 685, the more money you will make. The maintenance is $3,000 per contract ($30,000. The profit parameters are 673.20 to 696.80. These are also the exit points. If you're bearish, this same trade can be established with a lower mid-point. Instead of the 685s, perhaps sell the 675 puts and calls and buy the 645 puts and 705 calls.

A more conservative approach would be to put on one of the "Butterfly Net" positions (see the May 27th column). For a relatively small risk, you may be able to show a nice profit for only one week of exposure.

Good luck, be careful, and trade smart.

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CURRENT JUNE CPTI PORTFOLIO POSITIONS

CPTI June Position #1 - RUT - Bull Put Spread - 825.32

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 - 1490.72

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 - 825.32

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 - 1490.72

On 5/30, we sold 15 July SPX 1400 puts and bought 15 July SPX 1385 puts for a credit of $.70 ($1,050). On 6/4 we put on the bear call spread to complete our Iron Condor. We sold 15 July SPX 1625 calls and bought 15 July SPX 1640 calls for a credit of $.70 ($1,050). Our net credit and profit potential is $2,100. Our maintenance is still $22,500.

CPTI July Position #2 - SPX - Iron Condor - 1490.72

On 6/4, with the SPX at about 1536, we sold 12 July SPX 1440 puts and bought 12 July SPX 1425 puts for a credit of $.70. Then we sold 12 July 1625 calls and bought 12 July 1640 calls for a credit of $.70. The total net credit of $1.40 and profit potential is $1,680. Maintenance requirement is $18,000.

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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 - 825.32

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!

NEW DATES TO BE ANNOUNCED SOON
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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