Option Investor
Updates

ONE LONG MONTH TO GO

HAVING TROUBLE PRINTING?
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ONE L-O-N-G MONTH TO GO

It only took a half of a trading day on Friday for us to get back what we lost on Wednesday. We may as well give thanks for that along since it's the weekend to give thanks. But, don't get too excited. It was on very low volume and could disappear just as quickly as it appeared.

So, with a month to go - we have a 65-point cushion on our RUT bull put spread and a 120-point cushion on the bull put portion of our SPX Iron Condor. Should be an interesting month with a lot going on. We'll have to see which way the market over-reacts. If the market is an equal opportunity over-reactior, we'll probably stay safely in our range. Even though the trend is apparently down, it doesn't mean there won't be bounces.

If you subscribe to the "delta" method of determining probability of success, our short RUT 690 put has an 87% chance of success. Meanwhile, our SPX short 1320 put has a 91% chance of success.

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An IRA Skeptic
I recently came across an opinion on IRA accounts that I'd like to pass along. This person obviously has a bug up his butt, but he does bring up a few valid points. So, FWIW, here it is.

"Every time I read about the tax benefits of an IRA, I get sick to my stomach. Everyone in America needs to understand that there are NO tax savings with tax-deferred IRA!

With an IRA, your account is partnered with the government because your taxes are deferred (not eliminated). As your account grows, so does the government's tax portion. The only way there can be a potential tax savings is if you are in a lower tax bracket when you take distributions compared to when you made the contribution.

If you are planning to be in a lower tax bracket when you retire, then congratulations, because that is not hard to do. Currently, we are in a historically low tax rate environment, so if taxes are raised in the future, then your IRA is going to have to work that much harder for the same result."

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December Los Angeles Seminar

There are less than two weeks left until the L.A. seminar (Dec. 8 & 9), but it's not too late to make your reservation to attend. There are still a few spots remaining. Considering the market movement lately, I'm sure we're going to have a lot of interesting strategies to discuss. Come be part of it. Contact me right away at mparnos@optioninvestor.com.

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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 - 755.03

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 - 1440.70
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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