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I don?t like this market. I don?t imagine too many people do. Those pure blooded good American bulls, who?s glass is always half full, are devastated with every additional 15-20 dip in the S&P. Put holders and short sellers are in their glory, but life for them isn?t particularly easy either. When the market tanks ? pretty much on a daily basis ? the subsequent bounce sends the shorts scrambling to cover to keep some of their profits.

Either way, it?s stress, stress and more stress. Personally, I don?t need that mierde in my life. I work hard to avoid stress, and I?m pretty good at it. That?s why I plan to step back and watch the market for a bit. I want to wait until the smoke clears before we try to trade again. It might be a week or six weeks.

It?s going to be interesting to see how it all plays out. I feel bad for Bear Stearns investors but not that bad. They should have had their shares collared, so I can?t get too worked up. They could have avoided a huge portion of their losses. Hopefully, they learned something from the experience -- if they have any money left to invest.

Last Tuesday?s huge up day seems to be a fond memory. The bounce didn?t hold. Now, there doesn?t appear to be anything to be optimistic about. The CPI was a bit encouraging and the Michigan sentiment index was acceptable as well. But, the combination of both positives couldn?t hold off the bad financial news. And, it appears there is more to come.

There?s a lot of economic news scheduled for this week, including the Fed meeting. Will it be a half point cut? Three-quarters of a point? A full point? The consensus is for a ? point rate cut.

I would be quite surprised if anyone chose to play the quickie trades in this environment. Or, if they did, I certainly hope they adjusted the strikes. But, with the market fluctuating and the massive increasing volatility, it would just be looking for trouble to trade strategies meant for non-trending markets.

This is an unusual trading week in another respect. The markets will be closed on Friday for Good Friday. That means our European style options will cease trading on Wednesday. The opening settlement will be on Thursday (instead of Friday). Make your decisions accordingly. Plan ahead and don?t be greedy.

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S&P 500 Support & Resistance:
Closed at 1288.14
Resistance:
1294 from the January 2006 peak
1305 to 1302 from an August 2006 peak and matches a range of support from March and April 2006.
1317 is the early February low
The 10 day EMA at 1312
1320 is an ancient trendline
The 18 day EMA at 1324
1325 from May 2006 peak prior to the summer 2006 correction
The 50 day EMA at 1359
1368 is the high in this recent lateral consolidation
1370 is the August 2007 intraday low
1374 is the March 2007 closing low
1396 is the January 2008 peak
1406 is the August and November 2007 closing low
1417 is a longer term trendline from the August 2003/September 2004 lows

Support:
1288 from June 2006
1280 from June and August 2006
1272.66 is the March 2008 low
1270 is the January intraday low
1260 from July 2006
1258 to 1255 from May and June 2006 lows

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CPTI MARCH POSITIONS
CPTI March Position #1 - RUT Bull Put Spread ? 662.90

On 1/22, with the RUT at about 670, we sold 20 RUT March 540 puts and bought 20 RUT March 530 puts for a credit of $.60 ($1,200). Maintenance is $20,000. We will look to put on a bear call spread in the future - IF it makes sense.

CPTI March Position #2 - SPX Iron Condor ? 1288.14

On 1/28, with the SPX at about 1330, we sold 10 SPX March 1150 puts and bought 10 SPX March 1140 puts for a credit of $.50 ($600). Then, we sold 10 SPX March 1490 calls and bought 10 March 1500 calls for a credit of $.55 ($550). Total net credit is $1.15 ($1,150). Maximum profit range is 1150 to 1490 (340 points).

CPTI March Position #3 - SPX Bull Put Spread ? 1288.14

On 2/6, with the SPX at about 1342, we sold 20 SPX March 1140 puts and bought 20 SPX March 1130 puts for a credit of $.60 ($1.200). Maintenance is $20,000. We will look to put on a bear call spread in the future - IF it makes sense.


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CPTI APRIL POSITIONS

CPTI April Position #1 - RUT Bull Put Spread ? 662.90

On 3/5, with the RUT at about 674.50, we sold 20 RUT April 560 puts and bought 20 RUT April 550 puts for a credit of $.55 ($1,100). Maintenance is $20,000. We will look to put on a bear call spread in the future - IF it makes sense.

CPTI April Position #2 ? SPX Bull Put Spread ? 1288.14

On 3/10, with the SPX at about 1288, we sold 20 SPX April 1110 puts and bought 20 SPX April 1100 puts for a credit of $.55 ($1,100). Maintenance is $20,000. We will look to 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 $58,660 ($56,560 $2,100).

ZERO PLUS POSITION - SPX ? 1288.14

On 2/6, with the SPX at 1342, we sold 30 SPX March 1140 puts and bought 30 SPX March 1130 puts for a credit of $.60 ($1,800). Maintenance is $30,000. We'll look for a bear call spread to complete the Iron Condor - IF it makes sense.

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SEMINAR DATE -

LAS VEGAS ? To Be Announced Soon

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!

58 OUT OF 63 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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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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