Option Investor
Updates

THERE'S NO PLACE LIKE HOME

HAVING TROUBLE PRINTING?
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Home -- finally. Vacations can be great, but . After our Charlotte seminar, Lydia and I went to Savannah and Hilton Head. I had been there briefly once before, but Lydia had not. Lydia had never swam in the ocean before and the water was just right. She loved it.

As a life long couch potato, I can tell you that it's great to be home - back on your own turf - more importantly, your own couch. As you well know, not all couches are created equal. It can take months to break in a new couch - just like it takes a long time to break in a new trader.

Every couch has a different style, a different pattern, a different firmness. There are also likely a few lumps and indentations that are specific to the contour of the couch's owner. Our own couch is our comfort zone.

We're all resistant to change. It's tough to get someone up off their own couch and to have them make a commitment to break in a new couch. Just like it's tough to get people to change their trading style. That's why I'm consistently impressed with the turnout I get at my seminars. Here is a roomful of people who are willing to do what's necessary -- get their butt off their comfy couch and make the effort to change, and/or improve, what they've been doing. It's amazing what happens when you open your mind. More comes in than falls out (hopefully!).

I know what you're thinking. My analogy sucks. I know, but you have to admit that it makes sense. We get mired in doing things a certain way. It takes an earthquake, an epiphany and hell freezing over to move people to change. When it happens, it's beautiful thing.

Our New Portfolio Position
On Monday we had some fun. We put on another bull put spread - this one on the OEX. We sold 20 of the October MID 810 puts and bought 20 of the October MID 800 puts for a credit of $.60. I understand that some traders weren't able to get fills on Monday, but they were rewarded on Tuesday when the market pulled back. I received emails from traders who took in $.75 for the same trade. Good for you!!

Other more conservative traders took advantage of the same pullback to put on the 800/790 spread for $.50. I love it! You can never be too careful.

Our Hypothetical Siamese
On Monday I also discussed another hypothetical Siamese Condor - on the OEX, using XEO options. There have been plenty of opportunities to put on the trade. As late as yesterday, the Siamese Condor was available for the same $21.00 net credit.

Now, with the market moving up, the volatility (VIX) is steadily moving down. Tonight it closed at 17.00 - and the OEX is at 716.46. It hasn't been this low since late July. This one may work out quite well. We'll monitor it.

I also received emails from traders who put on the condor with 710 as the midpoint with a similar net credit. There's nothing wrong with having a bit of a bias. Just make sure you adhere to the exit parameters. You have to limit the risk. If the market runs too fast, and you're concerned about it hitting the exit parameter, there's nothing wrong with exiting a few points early and further reducing your risk. We all have to adhere to our own risk tolerance.

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A Little Charity
A crusty old man walks into the local Lutheran Church and says to the secretary, "I would like to join this damn church."

The astonished woman replies, "I beg your pardon, sir. I must have misunderstood you. What did you say?"

"Listen up, damn it. I said I want to join this damn church!"

"I'm very sorry sir, but that kind of language is not tolerated in this church."

The secretary leaves her desk and goes into the pastor's study to inform him of her situation. The pastor agrees that the secretary does not have to listen to that foul language.

They both return to her office and the pastor asks the old geezer, "Sir, what seems to be the problem here?"

"There is no damn problem," the man says. "I just won $200 million bucks in the damn lottery and I want to join this damn church to get rid of some of this damn money. "

"I see," said the pastor. "And is this bitch giving you a hard time?"

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CURRENT OCTOBER CPTI PORTFOLIO POSITIONS
CPTI October Position #1 - RUT - Bull Put Spread - 814.01

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 #2 - SPX - Bull Put Spread - 1531.38
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 $1,200. Our maintenance is $20,000. We'll look for opportunities to complete our Iron Condor if/when the market pops up.

CPTI October Position #3 - MID - Bull Put Spread - 888.47
On 9/24, with the MID at 881, we sold 20 October MID 810 puts and bought 20 MID 800 puts for a credit of $.60 ($1,200). Total net credit and profit potential (so far) of about $1,200. 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!

CHARLOTTE, NC - Another Huge Success!


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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