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AN EASY SETTLEMENT “ AIN’T IT SWEET?

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AN EASY SETTLEMENT - AIN'T IT SWEET?

We're well on our way to our 56th profitable month out of 61 and a great start to our sixth tracking year for the CPTI portfolio. Unless the world comes to an end tonight (which is unlikely), our CPTI portfolio positions will expire worthless and we'll smile all the way to the bank again this month. If the world does come to an end, then all this won't really matter anyway.

The market bounced around today (Thursday) and finally traded up at the close prior to tomorrow morning's settlement. It's been a good month. We're in fine shape. Even our traditional quickie trades have an excellent chance of ending up 100% profitable.

The Release Of Your Maintenance Dollars
Don't forget that, IF you have a good broker, your maintenance dollars will be released during the day on Friday. They will be available for other trades, if you choose to trade on Friday. What does that accomplish? Why is that a benefit? Because, if you put on a credit spread, you'll be able to pocket the premium that would otherwise erode away over Friday, Saturday and Sunday. It may not seem like much, but if you get an extra nickel or dime x 20 contracts x two options, you could be looking at almost $200.

So, if your brokerage firm doesn't release your funds on Friday, dump them. They're a liability to your trading business. Looking for the best options broker? We discuss brokers in depth at my seminar. Send me your phone number (Contact Support) and I'll call you with details. This option game is tough enough as it is. We need to have as many things going for us as possible. We need positives, not negatives.

Expiration Friday
Expiration Friday often provides a little bit of extra volatility and excitement. You know that I enjoy trading on Fridays. I'll be looking for a position to add to our January CPTI portfolio - especially since our maintenance dollars will be available.

Just another reminder - remember to keep some powder dry for new positions and potential adjustments, if needed, later in the month. After a few successful months, it's easy to get over confident and to start trying to compound our profits. We've had four 100% profitable months in a row since the August debacle. It's natural to want to make back losses in a hurry. Compounding can be dangerous and needs to be done cautiously, in small steps. You can increase your contract size a little at a time. Keep your other profits for new positions and adjustments.

If you double or triple your contract size, you're increasing your exposure unnecessarily. If another August happens, you'll be SOL. This is not a race, it's a marathon. You don't want to shoot your wad at the beginning of the game. Patience, my friends. Patience.

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Thank You For Your Input
I'm in the process of finalizing plans for the northeast seminar I've been asking about. I appreciate all the responses I've received. They helped me zero in on a weekend that will please the most attendees. I'll publish the specifics in Sunday's column.

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SEMINAR DATE -

CHICAGO - JANUARY 26 & 27


Give Yourself The Gift Of Knowledge This Holiday Season!

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 non-directional strategies, trade selection, entry points, exit 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.

There is now only one retake spot available for the Chicago seminar. 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 - 767.54

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 - 1467.95
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 - 767.54

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 - 1460.12
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 - 1460.12
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 - 1460.12

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 $30,000. 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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