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BACK IN THE GREEN & NEW SEMINAR DATE

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BACK IN THE GREEN & NEW SEMINAR DATE

The market continued its wild ride, but on Friday morning, when the numbers were tallied, our positions were 100% profitable - unharmed and unthreatened during the five week cycle. After a one-month hiccup, we're back in the green and we made up over 70% of last month's misfortune. It was a productive, low stress month - our 52nd profitable month out of 56.

Now, we can focus on August. There was a lot of trading activity on Friday. My broker released the maintenance dollars early on Friday (as any good broker will) and we put them to work. I'm still a bit hesitant to put on bear call spreads - at least for the moment. We've seen the market rebound in large chunks. Remember, it was only a little over a week ago that the SPX spiked up an unheard of 29 points. It's a little unnerving and makes you think.

If the market continues down, we will look to put some bear call spreads on our August RUT bull put spreads to bring in some more premium.

Our ongoing Zero-Plus strategy position was also 100% profitable. We'll be looking for a new position.

Meanwhile, on Friday, the VIX popped up to 18.53 at one point and eventually settled at 16.95 - an increase of 1.72. That means that there is premium out there. With the volatility at this higher level, it allows us to put on positions with only four or five weeks to expiration instead of positions with seven to eight weeks to expiration. We would like to avoid that additional time exposure if at all possible. It's nice to have choices.

Anniversary
This July marks a milestone. I have now been writing for OptionInvestor for five years. Whoda thunk? It's actually quite remarkable. To put it into perspective, the likelihood of me lasting for five years with OI was the equivalent of buying an SPX option 100 points out of the money with 30 days to expiration with a 10-point IV. The delta was about five.

Those of you who have attended my seminars know the whole story of the turbulence. That's old news. The good news is that there has been a changing of the guard. The new folks in charge seem to be open-minded and have the best of intentions. I've heard about aggressive plans to improve the appearance, quality, and content of the site. If these plans become reality, it's something we can all look forward to.

Plus, tomorrow, July 23rd, is Lydia & my first wedding anniversary. It's been an incredible year in many respects. I give Lydia much of the credit for my health and happiness. She's incredible. And also, many thanks to you, the spuds -- my Couch Potato family.

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TRACKING CPTI PORTFOLIO RESULTS
We've just completed the eighth month (July) of CPTI tracking year number five. The market continued its upward move, but we were well positioned and our plays were never really threatened. We ended up with our 52nd profitable month out of 56. Our profit for the eighth month of our fifth year was $5,680. Thus far, in our fifth tracking year, we've still accumulated a tidy profit of $18,070 ($12,390 $5,680).

RECAP OF JULY POSITIONS
(See Position Details in JULY Summary Below)

SPX Iron Condor - PROFIT: $2,100
SPX Iron Condor - PROFIT: $1,680
RUT Iron Condor - PROFIT: $1,900

TOTAL JULY PROFITS: $5,680

July Settlement Numbers:
S&P 500: $SET - 1551.46
Russell: $RLS - 849.97
S&P 100: OEX - 709.92
MID: $MIV - 922.42
S&P 100: OEX & XEO - 709.92

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SECOND CPTI FALL SEMINAR DATE: OCT 20TH & 21ST - SEATTLE

Seattle
As a result of many emails I received, we will venture to Seattle, WA this fall. The dates are Saturday & Sunday, October 20th & 21st. We've been to San Francisco and the L.A. area a few times in the last few years, but never the Pacific Northwest - and Seattle is supposed to be a great place to visit.

I've had a lot of seminar attendees from Seattle and Vancouver in the past - and I know there are a lot of traders in and around the Seattle metro area. I look forward to seeing some old friends and making a roomful of new friends. I plan to produce a bunch of skilled, profit-hungry couch potatoes who will be able to use the new skills to enhance their trading to become lean, mean trading machines (at least during the commercials) - and maybe not so lean, now that I think about it.

The early bird special for the Seattle seminar is in effect until September 1st. Take advantage and save $100. It's a hell-of-a-deal.

There are five "retake" spots available for the Seattle seminar. These retake spots are free for those who have paid for attending one of my previous seminars and who want to retake the seminar a second time. They're reserved on a first come first serve basis. These spots go fast.

Charlotte (Sept. 22nd & 23rd)
Don't wait to make your reservation. The seats go quickly and you'll also want to take advantage of the $100 early bird savings if you complete your reservation before August 15th.

There are three "retake" spots remaining for the Charlotte seminar. These retake spots are free for those who have paid for attending one of my previous seminars and who want to retake the seminar a second time. They're reserved on a first come first serve basis. These spots go fast.

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Quickie Results
When you're hot, you're hot. Not only did our CPTI portfolio positions all expire comfortably, but both of our quickie positions expired completely profitable.

We had the 830/820 & 870/880 RUT Iron Condor. The RUT settled at 849.97. The profit, for those who held to settlement, was a healthy $4,000.

We also had the SPX 1520/1505 & 1575/1590 Iron Condor. The SPX settled at 1524.09. The profit, for those who held to settlement, was a healthy $3,825.

As I've said countless times before, these quickie trades are dangerous, but when they work out, they put a nice piece of change in our pocket. And, surprisingly enough, they seem to work out more often than not. Like any other style of trading, it's limiting your losses when there's a problem.

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SUMMARY OF JULY CPTI PORTFOLIO POSITIONS

CPTI July Position #1 - SPX - Iron Condor - 1534.10

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 - 1534.10

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 - 836.44
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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CURRENT AUGUST CPTI PORTFOLIO POSITIONS

CPTI August Position #1 - RUT - Bull Put Spread - 836.44
On 6/29, with the RUT at 844, we sold 20 August RUT 740 puts and then bought 20 August RUT 730 puts for a credit of $.45 ($900). Total net credit and profit potential of about $.45 ($900). Our maintenance is $20,000. We'll look for opportunities to complete our Iron Condor if/when the market pops up.

CPTI August Position #2 - SPX - Iron Condor - 1534.10

On 7/3, with the SPX at about 1524.50, we sold 12 August SPX 1400 puts and bought 12 August SPX 1385 puts for a credit of $.65 ($780). Then we sold 12 August 1615 calls and bought 12 August 1630 calls for a credit of $.80 (960). The total net credit of $1.45 and profit potential is $1,740. Maintenance requirement is $18,000.

CPTI August Position #2 - RUT - Bull Put Spread - 836.44

On 7/19, with the RUT at about 851, we sold 20 August RUT 770 puts and bought 20 August RUT 760 puts for a credit of $.45. The credit so far is $.45 ($900). Our maintenance is $20,000. We'll see if it's prudent to put a bear call spread on the topside 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. With the July profits, our new cash total is $55,060 ($52,210 $2,850).

ZERO PLUS POSITION -

RUT - Iron Condor - 836.44 - 100% PROFITABLE

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 were 100% profitable and pocketed $2,850.

We'll be looking to put on a new Zero Plus position soon.

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CPTI SEMINAR SCHEDULE!

SEPTEMBER 22nd & 23rd - CHARLOTTE, NC

OCTOBER 20TH & 21ST - SEATTLE, WA


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 personally call you with all the pertinent information. The price is a bargain - ONLY $995.00 -- less than the profit from one Iron Condor trade. Take advantage of the "early bird special" and save $100. You'll have a two-day experience that you'll remember, and profit from, for a lifetime. I limit my 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!

52 OUT OF 56 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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