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UNCOMFORTABLE WITH OUR STRATEGIES?

HAVING TROUBLE PRINTING?
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Today's Fed decision? No big deal - at least not so far. It popped momentarily when the announcement came out, but drifted back down and the market ended up basically even for the day. Occasionally, the market takes a day to absorb the info and then moves. We'll have to wait and see.

On Wednesday (6/26), the VIX spiked to, and closed at, 18.89. Impressive. There was premium everywhere. On Thursday, three-plus VIX points disappeared, and along with it went the premium. There's still some out there, but I half regret not putting on an August position when the premium was abundant. I suspect, however, that we'll get another chance or two as this market has more moves than Trixie on a fireman's pole.

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Hi Mike -- I sit on the sidelines watching as I have no confidence in myself visa vi trading your CPTI trades. Would it be better to switch to a different newsletter like the simpler covered call one or such. What do you think? - Luke

Hi Luke -- I, personally, prefer not to trade those strategies. I don't like the probabilities of success. If you "must" trade, you could trade the covered calls, but to do it with less risk, you should turn the covered calls into "collars." If I believed in them as a consistent profitable strategy, I'd include covered calls in the Couch Potato Trader portfolio - but I don't. The main thing trading covered calls has going for it is that it's relatively easy to understand. But, there's more to trading covered calls than meets the eye. Go to the Option 101 column on the OptionInvestor site. I have written four separate columns on covered calls. It's an education right there on a silver platter.

I admire the fact that, since you are unsure of your knowledge and trading skill levels, you are waiting to trade. Too many traders dive into the water not knowing how to swim only to find their brokerage account floating face down.

Regardless of the newsletter you choose, if you don't fully understand the strategies, you are at risk of losing a great deal of money. I get the impression that you are relatively new to options, etc. If you decide to trade anything, I suggest you start with very small quantities -- until you are very comfortable with the process and the strategy itself
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I suggest you spend some time studying. In the case of our Couch Potato Trader column, as a subscriber, you have access to our archives going all the way back to January 2005. I suggest you go back and read the postings. There is valuable educational material throughout the archives. You'll get a good feel for the strategies, how they work, their risk/reward, the negotiation process, entry and exit methods, etc.

Newer traders have a tendency to click first and ask questions later. As long as the positions aren't threatened, they look like geniuses. No problemo. Life is good. But, when the manure hits the fan, it's panic time - and it can get expensive, very expensive.

The other alternative for learning our Iron Condor, and other non-directional strategies, is to attend one of my two-day advanced seminars. You can absorb six months of learning and experience into a single weekend - a memorable experience in many respects. The seminar is ever-evolving. I'm always adding new strategies, topics and trading methodologies. If you're serious about increasing your probabilities of success, the seminar may very well be the most direct route. New fall dates will be announced soon.

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S&P 500: Support & Resistance - Closed at 1506.34
The 50 day SMA at 1508
1524 is the late November to February up trendline
1528 is the March 2000 closing high
1541 is the June high.
The upper trend-line of the channel at 1551
1553 intraday high from March 2000 is the all-time index peak

Support:
The 50 day EMA at 1501
1490.72 is the early June closing low
1475 from peaks in December 1999 and January 2000
1461.57 is the February 2007 high.
1440 is the mid-January high

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CURRENT JULY CPTI PORTFOLIO POSITIONS

CPTI July Position #1 - SPX - Iron Condor - 1505.71

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 - 1505.71

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.

CPTI July Position #3 - RUT - Iron Condor - 839.03
On 6/21, with the RUT at 839.81, we sold 20 July RUT 770 puts and then bought 20 July RUT 760 puts for a credit of $.55 ($1,100). Then we sold 20 July RUT 900 calls and bought 20 July RUT 910 calls for a credit of about $.40 ($800). Total net credit and profit potential of about $.95 ($1,900). We have a 130-point maximum profit range- from 770 to 900. Our 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 $52,210 ($49.610 - $2,500).

NEW ZERO PLUS POSITION -

RUT - Iron Condor - 839.03

On 6/21, with the RUT at 839.81, we sold 30 July RUT 770 puts and then bought 20 July RUT 760 puts for a credit of $.55 ($1,650). Then we sold 20 July RUT 900 calls and bought 20 July RUT 910 calls for a credit of about $.40 ($1,200). Total net credit and profit potential of about $.95 ($2,850). We have a 130-point maximum profit range- from 770 to 900. Our maintenance is $20,000.

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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 55 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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