Option Investor
Updates

HERE COMES EXPIRATION WEEK

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In this Thursday's column I suggested a new portfolio position, along with possible variations. I was pleasantly surprised to see that almost 3,000 contracts of the RUT 740 puts were traded. That's among the highest number of contracts traded in one of our suggested positions.

The original suggested position was the RUT 750/740 puts. Since the numbers were based on Thursday's closing prices, it was only logical to assume that the market would open on Friday either above or below Thursday's closing prices. So, I tossed out alternative scenarios and appealed to your trading creativity and flexibility.

As it turned out, the market moved higher at the open and the originally suggested 750/740 position was not available at the suggested premium. I noticed the volume on the options slowly creeping up. It wasn't until late morning when the market pulled back a bit that the volume in the options picked up. It was apparent that there were just as many 740/730 spreads going through as 750/740s. Many traders were taking the safer spread - which is applaud!

The 750/740s were going through at a $.60 credit while the 740/730s were getting a $.50 credit. I, personally, didn't think that the extra $.10 of credit was worth the extra 10 points of risk. So, I opted for the 740/730 position. That provides us with a nice 100-point cushion.

We're also using this new RUT 740/730 position for our ongoing Zero-Plus strategy. The only difference is that we're trading 30 contracts instead of the 20 we normally use in the CPTI portfolio.

Since the market is trending up, I'm holding off putting on bear call spreads. It's not a good idea to lay down in front of a steamroller. The November RUT 910/920 bear call spread looks inviting, but although it might work out fine, I don't believe it's worth the risk. It's only 70 points away. But, that's my risk tolerance talking.

There were over 3,000 720 contracts traded as well, which leads me to believe that some traders chose to be even safer with the RUT 730/720 spreads.

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Siamese Condor Update
Even though the market is trending up, we've used some common sense and have been able to lock in some respectable profits using our Siamese Condor strategy. In September we brought in $2,440 and this month (October) we took in another $1,380 - not bad for a trending market.

Many readers have asked that I continue the Siamese Condor positions. Therefore, when appropriate, I'll present more "hypothetical" positions.

In time, we may make the Siamese Condor position a part of our CPTI portfolio. It may make up for some of the slack when we're limited to trading only one side of the Iron Condors.

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CPTI Seminar - Next Stop L.A.
Per a number of requests, from new Couch Potato subscribers and former seminar attendees, I'll be presenting my two-day advanced seminar on the weekend of December 8th & 9th.

The popularity of option trading continues to increase. The landscape is constantly changing. There are a number of other trading vehicles being offered. Plus, some brokers are progressing with what is being offered - in the form of personal assistance, strategy education and creative maintenance options. We delve into all of the above - in depth - at the seminar.

Plus, we discuss, for hours, trade selection, entry points, exist strategies and alternatives, premium negotiation, taxes, and much more - all subjects necessary to help maximize your trading business. As you know by now, the seminars typically sell out. As in trading, opportunities aren't there for long. Reserve your spot as soon as possible.

Give yourself the gift of knowledge. It lasts a lifetime - often even longer.

Early Bird Special - SAVE $100

If you complete your registration for the upcoming Los Angeles seminar prior to November 9th, you will save $100. If you've been paying attention to my column, by now you know that every $100 you save is $150 you don't have to make. Plus, for most, it's all deductible for you.

There is now only one retake spots available for the Los Angeles seminar. This spot will go quickly. If you're interested, I suggest you contact me as soon as possible.

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CURRENT OCTOBER CPTI PORTFOLIO POSITIONS
CPTI October Position #1 - RUT - Bull Put Spread - 841.17

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 - 1561.80
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 - 910.77
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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CPTI November Position #1 - SPX - Bull Put Spread - 1561.80
On 10/9, with the SPX at 1553.50, we sold 20 November SPX 1425 puts and bought 20 November SPX 1415 puts for a credit of $.50 ($1,000). Maintenance is $20,000. We may put on a bear call spread in the future - IF it makes sense.

CPTI November Position #2 - RUT Bull Put Spread - 841.17
On 10/11, with the RUT at 835, we sold 20 November RUT 740 puts and bought 20 November RUT 730 puts for a credit of $.50 ($1,000). Maintenance is $20,000. We may put on a bear call spread in the future - IF it makes sense.

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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 -
CPTI Zero-Plus Position #1 - RUT Bull Put Spread - 841.17

On 10/11, with the RUT at 835, we sold 30 November RUT 740 puts and bought 30 November RUT 730 puts for a credit of $.50 ($1,500). Maintenance is $20,000. We may put on a bear call spread in the future - IF it makes sense.

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CPTI SEMINAR SCHEDULE!

LOS ANGELES, CA - DECEMBER 8 & 9


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 will 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!

53 OUT OF 58 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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