Option Investor
Updates

IT'S QUICKIE TIME

HAVING TROUBLE PRINTING?
Printer friendly version

I know many of you anxiously await this time of the month - quickie time. Over the past months we've been quite successful in generating a nice chunk of cash in the last week of the cycle. We'll try to keep the streak going for April.

Now, let me give you all the warnings. I don't trade the quickie trades. Why? Because they require attention, skill and experience. When everything is working out well, a chimpanzee can do it. However, when these quickie trades get into trouble, you have to know how to handle trouble. Some traders do. Unfortunately, most don't. And that can get real expensive.

The monthly quickie trades are not officially Couch Potato Portfolio trades. I might mention them in the column, but they aren't necessarily tracked nor is specific advice provided.

In the past month, the volatility has come down significantly. Last month, when I suggested the quickie trades, the VIX was in the 28-29 range. Tonight, the VIX is about 22. That's a significant decrease (about 25%). As you know, when the VIX comes down, so does the amount of available premium. When the premium is lower, we have to place our bear call and bull put spreads a bit closer to where the index is trading.

That being said, let's check out the option chain to see what kind of trouble we can get into.

April Quickie Trade #1 - SPX Iron Condor - 1360.55
Sell 20 April SPX 1305 puts - SXYPA
Buy 20 April SPX 1295 puts - SZPPS
Credit of about $.80 ($1,600)

Sell 20 April SPX 1410 calls - SXZDT
Buy 20 April SPX 1420 calls - SXZDB
Credit of about $.80 ($1,600)

Total net credit of about $1.60 ($3,200). Maintenance is $20,000. Maximum profit range is 1305 to 1410.

April Quickie Trade #2 - XSP Butterfly
Buy 10 April XSP 135 puts - XSKPE
Sell 20 April XSP 133 puts - XSKPC
Buy 10 April XSP 131 puts - XSKPA
Debit of about $.29

This butterfly has a slightly downward bias and a good risk/reward potential. You'll be risking $.29, but you'll have the potential to make $1.71. One should watch this trade and look for an opportunity to close it out early and lock in a high percentage return on a $.29 bet.

I was looking for a similar butterfly spread on the call side at 137/139/141. It came in at a debit of about $.39. If you have a slightly upside bias, it's something to consider. These butterflies are cheap bets that can be real winners.

April Quickie Trade #3 - SPX Short Straddle - 1360.55
Sell 3 April 1360 puts - SXYPL
Sell 3 April 1360 calls - SXYDL
Credit of about $31.0 ($9,330)

Profit range is 1329 to 1391. If the SPX settles within this range, you will be profitable. The closer it finishes to 1360 (our short strike), the more profit will be made. However, we'd be better served to give time decay and hopefully a lower volatility a chance to work and close out the trade for a small profit. The profit parameters can also be used as exit points.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Women Of The US
Three men were sitting together bragging about how they had given duties to their new wives. The first man had married a woman from South Dakota and had told her that she was going to do dishes and house cleaning. It took a couple of days, but on the third day he came home to a clean house and dishes washed and put away.

The second man had married a woman from Nebraska. He had given his wife orders that she was to do all the cleaning, dishes, and the cooking. The first day he didn't see any results, but the next day he saw that it was better. By the third day, he saw that his house was clean, the dishes were done, and there was a huge dinner on the table.

The third man had married a woman from New York. He told her that her duties were to keep the house cleaned, dishes washed, lawn mowed, laundry washed and hot meals on the table for every meal. The first day he didn't see anything, the second day he didn't see anything, but by the third day some of the swelling had gone down, and he could see a little out of his left eye, enough to fix himself a bite to eat and load the dishwasher.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

NEW SEMINAR DATE ? LAS VEGAS - June 21 & 22
I will be presenting a two-day advanced CPTI seminar in Las Vegas on June 21st & 22nd (Saturday & Sunday). Come on down! As of this evening, six spots remain.

I've also negotiated an unbelievably low room rate for the weekend. Vegas is great for a getaway as well as for attending a seminar. Check out your calendar and contact me as soon as possible. Send your phone number to me at - Contact Support. I will personally call you to go over the details and to answer any questions you may have.

Also attending (and speaking) at the Las Vegas seminar will be Mike Cavanaugh, my personal broker and option strategist extraordinaire. Actually, he knows this stuff better than I do. I guaranteed you'll be impressed.

Early Bird Special - SAVE $100 - 1 DAY LEFT!!
If you reserve your spot for the upcoming Las Vegas seminar by April 11th, you will only pay $895 - $100 off the normal low seminar price of only $995.

Reserving early will accomplish a few different things. The earlier you reserve, the lower your airfare will be. Plus, you will be assured of a spot. The last two Las Vegas seminars have sold out well before the seminar dates.

Las Vegas Retakes Are Gone
As you may know, if you have previously taken one of my seminars (at any location), you are entitled to retake the seminar a second time at NO CHARGE! There were five retake spots available for the Vegas seminar. They are now gone. If you would like to be put on a waiting list, contact me. There is the occasional cancellation.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

CPTI APRIL POSITIONS
CPTI April Position #1 - RUT Bull Put Spread - 707.42

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 - 1360.55

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.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

CPTI MAY POSITION

CPTI May Position #1 - SPX Bull Put Spread - 1360.55

On 3/31, with the SPX at about 1316, we sold 20 SPX May 1130 puts and bought 20 SPX May 1120 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.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

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 March profits, our new cash total is $60,460 ($58,660 $1,800).

ZERO PLUS POSITION - SPX - Bull Put Spread - 1360.55

On 3/31, with the SPX at 1316, we sold 30 SPX May 1130 puts and bought 30 SPX May 1120 puts for a credit of $.55 ($1,650). Maintenance is $30,000. We have plenty of time to find a bear call spread. Let?s hope the market cooperates.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

SEMINAR DATE -

LAS VEGAS - June 21st & 22nd

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!

59 OUT OF 64 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?

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

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.

Couch Potato Trader Updates Archives