Option Investor
Updates

ON THE WAY TO L.A.

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ON THE WAY TO L.A.

Tonight I'm making the final preparations to head to the Los Angeles seminar. I leave tomorrow morning. It's five-plus hours on an airplane. I hope the market behaves itself while I'm in the air. It's going to be an excellent weekend. I'll be going from 20 degrees to about 70 degrees. That's a good start.

In the meantime, the market has been moving up steadily. On low volume, the market popped up significantly. The indexes closed near their high of the day. It's all part of the high volatility environment. I'm glad most of our positions don't have exposure to the upside. Our bull put spreads are looking pretty good right now.

You might throw out an order to close the December 690/680 RUT bull put spread for a nickel if you want to free up some maintenance dollars. It may not get filled right away, but it's worth a shot. It doesn't cost anything to put the order out there.

With the up move, the VIX has come down to about 21.10. That's pretty low compared to what we've experienced recently, but it still provides enough premium to make plays attractive.

The other day we put on a January RUT bull put spread. The market has gone up quite a bit in the last few days. Some might be looking for a bear call spread to complete the iron condor. The January 880/890 is a possibility for a credit of about $.50.

Personally, I'm not quite ready to pull the trigger on the bear call spread. There are a few economic numbers that could rattle our world along with the Fed meeting. It might be prudent to see how that all shakes out before making a commitment on the top side.

At this weekend's seminar we'll be looking for some viable positions for both January and maybe a few butterfly bombs for the December cycle.

Also, the December issue of (SFO) Stocks, Futures & Options Magazine has run my article on the "Butterfly Net" strategy that we discussed some months ago. They have a good new editor there and she didn't cannibalize the article. Writers appreciate that. I know I do.

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I'd Appreciate Your Input
I'm planning one presenting a seminar on the East coast in mid-March. Let me know if the timing is good for you and if you'd be interested in attending. I'd like to finalize the arrangements in the next 4-5 days and I'd appreciate your input. I haven't been to the East coast since April of 2006 and the natives are getting restless. Contact me at Contact Support. Send me your phone number and I'll call you to go over the possibilities.

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December Los Angeles Seminar - It's Not Too Late!

There is a day left until the L.A. seminar (Dec. 8 & 9). 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 -
LOS ANGELES - DECEMBER 8 & 9
CHICAGO - JANUARY 26 & 27

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 - A WEEK LEFT!
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 - 786.95

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 - 1507.34
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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CPTI JANUARY POSITION
CPTI January Position #1 - RUT Bull Put Spread - 786.95

On 12/4, with the RUT at 752, we sold 20 December RUT 620 puts and bought 20 December RUT 610 puts for a credit of $.60 ($1,200). 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 $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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