Option Investor
Updates

IT'S QUICKIE TIME

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The last few months we've had some good luck with our quickie trades and made some nice green. This month, in some respects, is like the last few in that the market continues to move in chunks. However, despite all the chaos, it seems to be staying in a range - and we've been able to place our strikes slightly beyond the range parameters. How long will that continue? Who knows? But, we'll keep plugging away and try to pocket some profits.

As I do every month, let me warn you about the quickie trades. They're dangerous. They're risky - especially if you're not experienced, if you don't have a substantially large trading account plus an equally large risk tolerance and if you aren't a sound sleeper. I don't personally trade these quickie trades, nor are they official CPTI positions. Consider all this before you tread into the abyss - the Bermuda Triangle of trading. You, and your money, may never be seen again.

Yesterday, I tossed out a quickie idea - a Siamese Condor with the short strike at 1490. We had a $38.15 credit and a profit range of 1451.85 to 1528.15. If you have a question about the position, refer to yesterday's (Wednesday) posting.

Today, I received an email from CPTI student Greg. He suggested a variation of the trade - his own quickie. Instead of doing a Siamese Condor, he was able to put on an Iron Condor - the 1505/1605 bear call spread and the 1450/1350 bull put spread. He took in a credit of $21.

That's a good trade. He keeps the entire $21 if the SPX closes inside 1450 and 1505. There's a reasonable chance of that happening. The profit range extends out $21 from those parameters. We'll keep an eye on it.

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December Quickie #1 - MID Iron Condor - 868.96
Sell 20 Dec. MID 830 puts - MLTXF
Buy 20 Dec. MID 820 puts - MLTXD
Credit of about $.65 ($1,300)

Sell 20 Dec. MID 900 calls - MQWLT
Buy 20 Dec. MID 910 calls - MQWLB
Credit of about $.65 ($1,300)

Net credit and profit potential of $1.30 ($2,600). Maximum profit range of 830 to 900. The maintenance is $20,000.

December Quickie #2 - SPX Iron Condor - 1488.41
Sell 20 Dec. SPX 1425 puts - SXZXE
Buy 20 Dec. SPX 1415 puts - SXZXC
Credit of about $.80 ($1,600)

Sell 20 Dec. SPX 1540 calls - SXMLH
Buy 20 Dec. SPX 1550 calls - SXMLJ
Credit of about $.80 ($1,600)

Net credit and profit potential of $1.60 ($3,200). Maximum profit range is 1425 to 1540. The maintenance is $20,000.

Be careful, double check the option symbols and only consider these trades if you know what the hell you're doing. This market is crazy and will have you for lunch if you can't handle it if a trade goes wrong.

December Quickie #3 - See Yesterday's "Early Quickie" - SPX Siamese Condor

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Re: Today's CPTI Suggested Position
I sent out an SPX position today, the 1330/1320 bull put spread for January. The trade was for the vast majority of CPTIers who did not put on the Sunday SPX Iron Condor suggestion. I will consider both as official CPTI portfolio positions. Both should do well. Many hundreds of contracts were filled. Now, let the games begin.

Some, who choose to put on both positions, might have an issue in the fact that the long 1330 on the bull put spread (from Sunday) would be the short position in today's bull put spread. It's unlikely that your broker would allow you to hold both positions in the same account. You would probably have gotten an error message when putting on the trade alerting you to that fact. If that was the case, you may have had to adjust the strike prices up or down.

Today's SPX bull put spread (1330/1320) for January was also put on for our Zero Plus Ongoing Strategy. We used a 30 contract position. For those of you who follow the Zero Plus, you know we always do more contracts than we do in our normal CPTI positions.

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I Still Need 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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SEMINAR DATE -

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 - ONE DAY LEFT!
Chicago - If you complete your registration for the upcoming Chicago seminar by tomorrow, 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 - 769.46

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 - 1488.41
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 POSITIONS
CPTI January Position #1 - RUT Bull Put Spread - 769.46

On 12/4, with the RUT at 752, we sold 20 January RUT 620 puts and bought 20 January 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.

CPTI January Position #2 - SPX Iron Condor - 1488.41
On 12/10, with the SPX fluctuating, we sold 20 January SPX 1340 puts and bought 20 January SPX 1330 puts for a credit of $.60 ($1,200). Then, we sold 20 January SPX 1630 calls and bought 20 January SPX calls for a credit of $.55 ($1,100). Net potential profit is $2,300. Maintenance is $20,000.

CPTI January Position #3 - SPX Bull Put Spread - 1488.41
On 12/13, with the SPX at 1472, we sold 20 January SPX 1330 puts and bought 20 January SPX 1320 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 $56,560 ($55,060 $1,500).

ZERO PLUS POSITION - SPX Bull Put Spread

On 12/13, with the SPX at 1472, we sold 30 January SPX 1330 puts and bought 30 January SPX 1320 puts for a credit of $.70 ($2,100). 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!

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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