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A LOT TO BE THANKFUL FOR

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A LOT TO BE THANKFUL FOR

As I think back on the past year, I'm thankful for . . .
-- A truly wonderful Filipino woman, Lydia, who chose to make me her husband and to bring an incredible amount of joy to my life. Who'd a thunk it? I thought my battery was dead. But, all it needed was recharging.
-- My health, which is now pretty good (for an old fart) - thanks to Lydia.
-- Two amazing children who are kind, caring, intelligent and who I've never had to bail out of jail, take to rehab or buy a house for.
-- A great group of almost 400 traders who, over the last few years, have come a long way to listen to me yak at them and who have become like extended family. Some are now retired, living on money they make from what they've learned.
-- A group of Couch Potato subscribers who, for the most part, know their limitations, ask questions and who really want to learn the strategies we use. If you don't know where you're going, you're sure to step into a pile of it.
-- The fact that Detroit had Isiah Thomas as a player and not as a coach.
-- The fact that I get two turkeys this Thanksgiving. The one on the table and watching the Detroit Lions.
-- That my 1994 Ford Escort Wagon is in pretty good health (also for an old fart).
-- That I actually sold my old condo (at a loss) in this lousy real estate market.
-- That my article coming out in the December issue of SFO (Stocks, Futures & Options) Magazine will have a minimal amount of typographical errors.
-- The new hardwood flooring I just had put in my condo. No scratches - yet! But it's only been two days.
-- And thankful for the new regime at OptionInvestor. It should make a big difference over time. Be patient. I think there are good things coming.

What Are YOU Thankful For?
Take some time today to reflect - between forkfuls of turkey or during halftime. Think about it. In reality, most of what happens to us in this life are a result of things we've done right, done wrong or haven't done at all. One of the biggest things you can give thanks for is the awareness of that fact.

If you've made good sensible decisions, then it's likely you'll have a lot to be thankful for. If not, then own up to it. Taking responsibility isn't easy. It's a lot easier to point your finger in another direction. Making those tough decisions and acting upon them are two very different things. You have to know when to cut your losses in life as well as in your trading life. It takes preparation, education, and strength of character. All three can be learned and achieved - IF you want it badly enough.

HAVE A HAPPY, HEALTHY AND SAFE THANKSGIVING!

The Market
Wednesday was another typical day in this highly volatile market. Down, up, down again. It's enough to get you seasick. It's incredibly hard to trade, too.

The increased volatility is a blessing and a curse. There's more premium to be had. But, by the same token, the high volatility and huge bid/ask spreads make it particularly difficult to get out of trades if/when the time comes.

You've heard me say that we don't have to be in the market all the time. This is a perfect example. We have a few positions on right now, but I'm hesitant to put on any additional positions for the December cycle. It sure is tempting to put on a MID or OEX credit spread. But, it's more important to stay alive.

Remember, in the movie The Karate Kid, young Daniel asked Mr. Miyagi, "what is the best defense?" Mr. Miyagi calmly replied, "Daniel-son, the best defense is -- no be there." Maybe we should take that to heart.

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

Chicago is both centrally located and easily accessible. We've been there twice before and filled the room. I've chosen a hotel convenient to the airport - eliminating the need to rent a car. You 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.

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.

SAVE $100 - EARLY BIRD SPECIAL
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 is now only one retake spot available for the Chicago seminar. These spots go quickly. Contact me as soon as possible if you would like to join us.

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CPTI DECEMBER POSITIONS

CPTI December Position #1 - RUT Bull Put Spread - 740.30
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.

CPTI December Position #2 - SPX Iron Condor - 1416.
On 11/16, with the SPX at about 1450, we sold 20 December SPX 1320 puts and bought 20 December SPX 1310 puts for a credit of $.90 ($1,800). Then we sold 20 December 1570 calls and bought 20 December 1580 calls for a credit of $.70 ($1,400). Total net credit and profit potential of $1.60 ($3,200). Maintenance is $20,000.

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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 $56,560 ($55,060 $1,500).

ZERO PLUS POSITION - Watch for new position to be announced.

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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!

55 OUT OF 60 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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