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ONLY THE SETTLEMENT REMAINS

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ONLY THE SETTLEMENT REMAINS

Today the markets pulled back a bit. That's nice. Our positions are in very good shape. With the memory of August fresh in our mind, it's nice to have a month where the stress level is back to normal - very little.

If you have the positions in our CPTI portfolio, and if you have a quality broker, about $70,000 of maintenance will become available early Friday. That's one of the benefits of using a good broker. You can use those funds, if you choose, for the bull put spread suggestion I sent out this afternoon. It went out about 3 p.m., sort of late in the day, so not too many traders were able to enter the trade. Originally, it appeared that we'd be able to get a credit of $.70. Wouldn't you know that, no sooner did I send out the trade, but the market moved up, making our $.70 credit unlikely.

I then sent out another posting suggesting a reduction of the credit limit to $.60. About 145 contracts made it through at $.60. That was about it. Normally, when I suggest a trade, well over 1,000 contracts trade in a relatively short period of time. I suspect that tomorrow may bring a few more fills. As I write this, the futures are down about 1.50 and there are no major numbers to be announced tomorrow. So, there may be some downside opportunities tomorrow.

Though the VIX took a big hit on Wednesday and Thursday, it's still at 20.45 - a respectable level. There's a bit of premium out there.

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Siamese Progress
Here's an update on the hypothetical Siamese Condor I discussed back on 9/2. Those of you who locked in the $2,200 in profit when it made sense to do so are smiling all the way to the bank. However, after the Fed announcement, the OEX flew past the 709 exit parameter. Those who were greedy and held the position beyond Tuesday afternoon may live to regret it.

Since the XEO options are based on using the OEX, there is still one day of trading left. The OEX is hovering right above 709. There's a chance that the OEX may pull back below the 709 exit parameter. Those who are still holding on (and I hope there aren't many) may just luck out. But, that's not how to play the game. We're in the percentage business. When the percentages are on our side, we have to take advantage of them.

Straddle Progress
This is another instance of a trade that looked pretty good - for a minute or two. Then, shortly thereafter, when the Fed surprised us with a positive announcement, it was obvious that we weren't going to get the size move we were looking for - nor the direction. Those who reacted when I sent out the posting, took a small hit ($1,000). Right now there's a value of about $9.85 in the MNX October 200 puts and calls. Unfortunately, it cost $16.10 to enter the trade. There are still 30 days left, but there's no indication of a large move in the near future. There's no point in risking the last $9.85. So, those of you who are still holding the positions, suck it up and take your loss - and pay more attention to the alerts I send out. You either froze or got greedy - neither of which is going to keep you trading for long.

The September Quickies
They haven't worked out particularly well so far. The market has been too volatile. That's why I said these weren't a good idea to begin with. If you were in the SPX 1450 - 1520 Iron Condor, you should have bailed a long time ago.

If you were in the RUT 740 - 820, you may still be holding on. There's a reasonable chance you will be profitable, although it might have been more prudent to GTFO when the getting was good.

The XEO 695 short strangle was violated days ago. Once it broke 713.50, it was time smart traders to depart.

All of these may end up being profitable if the Friday morning settlement is down, but that's not something you can rely on. You have to be prudent or you run the risk of losing the family jewels. If you value them, protect them.

This Weekend
Friday morning Lydia and I are on our way to Charlotte. It's nice to put on a seminar in the same time zone (Eastern). When I go to the west coast - where they lead a three hour tape delayed existence -- my body never seems to adjust to the time difference.

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SEMINAR DATE - Charlotte This Weekend
Charlotte (Sept. 22nd & 23rd)

There are still a few spots remaining for the upcoming Charlotte seminar.

There is one "retake" spot remaining for the Charlotte seminar. These retake spots are free for those who have paid to attend 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.

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CURRENT SEPTEMBER CPTI PORTFOLIO POSITIONS
CPTI September Position #1 - RUT - Bull Put Spread - 809.76

On 7/24, with the RUT at 822.70, we sold 20 September RUT 700 puts and bought 20 September RUT 690 puts for a credit of $.70 ($1,400). Total net credit and profit potential (so far) of about $.70 ($1.40). Our maintenance is $20,000.

CPTI September Position #2 - SPX - Bull Put Spread - 1518.75
On 8/3, with the SPX at about 1463, we sold 20 September SPX 1260 puts and bought 20 September 1250 puts for a credit of $.50 ($1,000). Our maintenance is $20,000.

CPTI September Position #3 - RUT - Iron Condor - 809.76
(Formerly August Position) 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).

Adjustment: On 7/26, we closed the original 20-contract bull put spread position and established a 30-contract Iron Condor consisting of the 670/660 bull put spread and the 840/850 bear call spread. Maintenance is now $30,000 and the new maximum profit range is 670 to 840. The profit potential of $900 remains the same.

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CURRENT OCTOBER CPTI PORTFOLIO POSITION

CPTI October Position #1 - RUT - Bull Put Spread - 809.76

On 9/7, with the RUT at 775.53, we sold 20 October RUT 630 puts and bought 20 October RUT 620 puts for a credit of $.70 ($1,400). Total net credit and profit potential (so far) of about $.70 ($1,400). Our maintenance is $20,000. We'll look for opportunities to complete our Iron Condor if/when the market pops up.

CPTI October Position #1 - RUT - Bull Put Spread - 809.76
On 9/20, with the SPX at 1518, we sold 20 October SPX 1395 puts and bought 20 RUT 1385 puts for a credit of $.60 ($1,200). Total net credit and profit potential (so far) of about $1,400. Our maintenance is $20,000. We'll look for opportunities to complete our Iron Condor if/when the market pops up.

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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 -

Watch for a New Position To Be Announced Soon

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CPTI SEMINAR SCHEDULE!

SEPTEMBER 22nd & 23rd - CHARLOTTE, NC


Take your trading from a "hobby" to a 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 57 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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