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ANOTHER PROFITABLE MONTH FOR THE GOOD GUYS

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ANOTHER PROFITABLE MONTH FOR THE GOOD GUYS

54 OUT OF 59 PROFITABLE MONTHS!
Those premium dollars are rolling into our brokerage accounts again - slowly but surely. This October cycle all of our positions expired 100% profitable - generating a $3,800 profit. It's nice to be in the green. We put on our bull put spread positions as the market was trending up for most of the month. No muss, no fuss. It sure is nice when the best laid plans of mice and men work out.

Coulda Woulda Shoulda
We were conservative this cycle. We could have put on some bear call spreads, but the uptrend was intimidating. It was more prudent to just sit back and watch the market go up and sleep well the entire time. As it turns out, we may have sacrificed some premium, but that's just fine.

There will be traders who will, regardless of the market environment, put on both sides of an Iron Condor - hoping that the law of averages will help them if they get in trouble. I try to get through, but it feels like I'm having a battle of wits with a tube of toothpaste. Then, these traders get lucky when the market pulls back at the last minute as it did this month. Maybe it's better to be lucky than good. However, when the mierde hits the fan, all the king's horses and all the king's men can't put your account back together again.

We really haven't been in a range-bound market for a long time. With volatility back big-time, we have to be particularly careful. On Thursday night, when I wrote my last column, it looked like the market had calmed down. Well, all it takes is for me to even suggest it and the market takes a huge dump. It must be a curse - or maybe I'm a walking contrarian indicator. Now you see why I prefer non-directional strategies.

Needless to say, the hypothetical Boston Strangle I proposed on Thursday night was not wise to put on at this point. Early Friday morning action made that pretty apparent. We'll keep looking for another opportunity. Maybe things will really calm down instead of faking us out. We need to be prepared for all market activity. Come to my upcoming seminar (December 8 & 9 in Los Angeles) and learn the alternatives. It's nice to have choices. You can't protect yourself from the enemy with a weapon that's not in your arsenal.

October Quickies 100% Profitable
As luck would have it, this month, both of our Quickie trades were 100% profitable. The SPX Iron Condor brought in $3,400 and the RUT Iron Condor brought in $2,500. It's sweet when it works and a royal pain (expensive) when they don't. It's under these circumstances that the Friday morning settlement number worked to our advantage - which is pretty rare. If the settlement numbers were based on Friday's "closing" numbers, it would have been a whole different story.

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TRACKING CPTI PORTFOLIO RESULTS
We've just completed the eleventh month (October) of CPTI tracking year number five. The market was all over the place, not necessarily the kind of month good for our strategies. However, our short strikes were well positioned and all of our trades ended up 100% profitable. Our profit for the eleventh month of our fifth year was $3,800. Thus far, in our fifth tracking year, we've accumulated a profit of $10,110 ($6,310 + $3,800).

RECAP OF OCTOBER POSITIONS
(See Position Details in October Summary Below)

RUT Bull Put Spread - PROFIT: $1,400
SPX Bull Put Spread - PROFIT: $1,200
MID Bull Put Spread - PROFIT: $1,200

TOTAL OCTOBER PROFIT: $3,800

October Settlement Numbers:
S&P 500: $SET - 1531.12
Russell: $RLS - 824.75
S&P 100: OEX - 700.31
MID: $MIV - 899.60

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CPTI SEMINAR - NEXT STOP L.A.
Per asubscriber requests, I'll be presenting my two-day advanced seminar on Saturday & Sunday, December 8th & 9th.

Join us as we discuss, trade selection, entry points, exist strategies and alternatives, premium negotiation, maintenance alternatives, taxes, and much more - all subjects necessary to enlighten and to 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 are no more retake spots available for the Los Angeles seminar. There is now a waiting list for possible cancellations. Contact me if you would like to be on the waiting list.

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SUMMARY OF OCTOBER CPTI PORTFOLIO POSITIONS
CPTI October Position #1 - RUT - Bull Put Spread - 798.79

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 - 1500.63
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 - 879.07
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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CURRENT CPTI NOVEMBER POSITIONS
Position #1 - SPX - Bull Put Spread - 1500.63

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 - 798.79
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.

CPTI November Position #3 - MID Bull Put Spread - 879.07
On 10/16, with the MID at 902, we sold 20 November MID 820 puts and bought 20 November MID 810 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 - 798.79

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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