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NOVEMBER HYPOTHETICAL SIAMESE CONDOR

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NOV. HYPOTHETICAL SIAMESE CONDOR

The market took a day off - as far as the closing prices were concerned. But, it was really all over the place and just happened to end up about where it started. The Dow and the Nasdaq ended up to the positive, but the indexes we follow hardly budged.

So, it was much ado about nothing. But that doesn't mean we aren't going to see some more volatility in the last two weeks. Plus, it appears the market may be moving a bit to the downside. There are many who believe that, as long as we stay above 1490 on the SPX, we should still be bullish. Maybe so. Time will tell.

Let's see if we can create a hypothetical Siamese Condor to follow and continue our education. With the OEX trading at about $704.95 let's"

Sell 4 XEO Nov. 700 puts
Sell 4 XEO Nov. 700 calls
Total credit of about $22.80

Now, for those who don't have a large enough account or the appropriate trading levels, we'll have to buy some long puts and calls.

Buy 4 XEO Nov. 650 puts
Buy 4 XEO Nov. 750 calls
Debit of about $1.05

Net debit of $21.75. We've created a profit range of 678.25 to 721.75. If the OEX settles within those parameters, we will make money - how much is determined by how close it closes to our short strike (720). Our maintenance is $20,000. Our exit parameters are also our profit range points.

We'll keep a close eye on this position and watch how time works in our favor, the premium getting smaller and smaller. If we get a chance to close our position and lock in a reasonable profit, we shouldn't hesitate.

Some may want to create their hypothetical position using 705 as their short strike price, while others may have a slightly bullish bias and use 710. The Siamese Condor is flexible - and potentially very profitable. That's what I like about it. It's a strategy that is best suited for rangebound markets. It's also one of the strategies we go into in depth at my seminar.

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SEMINAR DATES -

CHICAGO - JANUARY 26 & 27
LOS ANGELES - DEC. 8 & 9

I recently asked for suggestions on a Midwest location for the next CPTI seminar. Thanks to the many who replied. Among the suggestions were Salt Lake City, UT, Dayton, Ohio, St. Louis, MO, Toronto, Canada, Chicago, IL (3), Cleveland, OH, Denver, CO.

Chicago seemed like the most centrally located and most accessible location. We've been there twice before and filled the room. Let's give it another shot. I've chosen a hotel convenient to the airport - eliminating the need to rent a car. You just take the airport shuttle right to the hotel, convenient and easy. Take advantage of the early bird special and save $100. See the details below.

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.

Early Bird Specials - SAVE $100
L.A. - 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, it's likely 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.

Chicago - If you complete your registration for the upcoming Chicago seminar prior to December 14th, you will save $100 only $895 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, it's likely deductible for you.

There are now three retake spots available for the Chicago seminar. These spots go fast. Contact me as soon as possible if you would like to join us.

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CURRENT CPTI NOVEMBER Position #1 - SPX - Bull Put Spread - 1509.65
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 - 797.78
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 - 886.52

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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CPTI December Position #1 - RUT Bull Put Spread - 797.78

On 11/1, with the RUT at 806, we sold 20 December RUT 690 puts and bought 20 December RUT 680 puts for a credit of $.70 ($1,400). 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 - 821.39

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

CHICAGO, IL - JANUARY 26 & 27


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!

54 OUT OF 59 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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