Option Investor
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A DOSE OF REALITY

HAVING TROUBLE PRINTING?
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In a war are there ever really any winners? Well, there's a war going on in the market now and the directional traders are picking sides. Bless them. A few will guess right and others will spend a long time licking their wounds (if they can bend over that far).

The way that stocks have been snapping back after lower openings in recent sessions seems to indicate that the buyers are still out there. I'm still holding off on bear call spreads on our three positions. I want to see if the market pops back up before I take the upside risk.

If we don't put on the bear call spreads, I'll be satisfied with another profitable month - with slightly lower profits due to uncompleted Iron Condors.

I also waiting for the market to calm down a bit to put on another hypothetical Siamese Condor, Boston Strangle or Butterfly Net. Waiting is really difficult. There is such temptation to jump right in and put on something. It's a true test of patience.

New Seminar Date
I'm in the process of finalizing plans for a new seminar date for the first weekend in February (Feb. 2nd & 3rd) or last weekend in January (26th & 27th). I'm looking at locations in the Midwest - something convenient for many. Take a look at your schedules and see if those dates are open. If you have a particular preference, let me know. At this point, I'm flexible. Contact me at mparnos@optioninvestor.com.

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Getting Real
I was going through a pile of old papers, searching for some old condo documents, and I stumbled across a few paragraphs of philosophy that have helped me get through a variety of situations over the years. I thought I'd share them with you. This isn't a joke. It's the real deal.

The theories below can apply to any area of your life - work, home, trading, relationships, and more. It's another one of those life lessons that is easy to talk about, but not so easy to implement. But, it's worth the effort and can make a big difference.

The Theory Of Reality
Reality isn't the way you wish things to be, nor they way they appear to be, but the way they actually are. Either you acknowledge reality and use it to your benefit, or it will automatically work against you.

That's the nice thing about reality - you do have the choice of employing it on your behalf, rather than sitting around like an idiot and allowing it to beat you over the head. Since not everything in life is within your control, it's nice to know that the acknowledgement of reality, and the opportunity to use it to your benefit, are.

The danger in confusing your preferences with realities is explained in the "Is's" Versus "Ought to's" Theory that follows.

The degree of complications in an individual's life corresponds to his insistence on dwelling on the way the things the world ought to be rather than the way it actually is.

It's very easy to fall into the trap of allowing your desires and emotions to play tricks on you, creating illusions intended to pass for reality. While a person spends his time dwelling on "ought to's" and makes plans accordingly, the world continues right on its merry way dealing in "is's."

What will always be irrelevant to reality are your wishes. When you allow your desires to become confused with the facts, you're heading for trouble. Simply stated by Ayn Rand, ". . . facts cannot be altered by a wish, but they can destroy the wisher." Avoid the pitfall of confusing the way you think things ought to be with the way they really are. Never be so afraid of the truth that you refuse to acknowledge it. How are you to deal effectively with facts if you deny their existence?

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CPTI SEMINAR - NEXT STOP L.A.
Per requests, from new Couch Potato subscribers and former seminar attendees, 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.

No more retake spots are 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. Thus far, there are two people on the waiting list.

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CURRENT CPTI NOVEMBER Position #1 - SPX - Bull Put Spread - 1514.40
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 - 806.11
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 - 884.83
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 - 806.11

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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