Option Investor
Updates

ANOTHER DAY AT THE OFFICE

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We put on a second June position on Tuesday - a 590/580 RUT bull put spread. The order was sent out at about 10 a.m. and, by the time all was said and done, about 3,000 contracts were traded on the spread options.

I always like to see my suggested trades have a high volume. I also like to get the emails from Couch Potato subscribers who tell me they got filled at a strike price lower. I must have received a half-dozen emails saying they were filled at the 580/570 level. I even got two emails from traders who were filled at 570/560 when the market tanked later in the day.

Were these traders patient and waiting for just the right opportunity? Or did they not look at their email until later when the market was already lower? I prefer to think they understand the value of the extra 20 points of safety and had it all planned. The 590/580 bull put spread should work out well, but those with the 570/560 bull put spread will sleep just a little sounder.

These opportunities aren't always there. There is the tendency to want to get filled right away and make sure you get the position. After all, we've seen similar trade suggestions evaporate as the market moved in the wrong direction between the time I post the trade until the time the subscribers emails arrive. It's a matter of experience. After you've watched the market for awhile, you'll notice that, most of the time (but not always), the index will return to test the daily high or daily low. That means that, even if you miss a trade, there's a reasonable chance that the index will return to that level at some point during the day and you may be filled.

This is just an observation, and not a sure thing. There are occasions that you may miss a trade from time to time. There's a trade-off on everything.

The Market
Still looks like the market (S&P 500) wants to go up, but it's butting its head up against resistance at 1390-1400. Will it come back down like it has in the past? Or will it finally bust through and work its way up to the next resistance level? Well, Microsoft earnings guidance wasn't well received, so it looks like the market might open down. American Express was up after hours after reporting a great quarter along with MA and V. What the market does will likely depend on how the other technology stocks react to Microsoft's earnings.

Lately, however, we've seen the market shrug off bad news. There are buyers waiting out there. We?ll see if they take advantage of tomorrow morning's opportunity.

Zero Plus Update
I'm going to look to possibly close our 1130/1120 May SPX bull put spread for a nickel and find a June position for our ongoing Zero Plus strategy. I'll be looking to put on a June bull put spread far out of the money - maybe on the SPX around the 1200 level or on the RUT around the 600 level.

Can You Believe It?
I received a letter last week. Somehow, the local government tracked me down and I received a letter to do my civic duty. I've been called for jury duty on Tuesday. I have no idea whether it will be a civil or criminal trial, but it should be interesting.

I was once scheduled to be on a jury at a civil trial. A woman on a bus was suing the bus company for a ridiculous amount of money because the bus started moving and she fell down. It wasn't a serious injury. She was just looking to get her hands into some deep pockets. The bus company paid her a nuisance settlement. It's too bad the case never went to trial. She never would have seen a nickel if I had anything to say about it. Those kind of settlements just reinforce the fact that people can get away without taking responsibility for their actions - or inactions. It's too bad.

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S&P 500 Support & Resistance
Resistance:
1396 is the February 2008 peak
1406 is the August and November 2007 closing low
1421 is a longer term trendline from the August 2003/September 2004 lows
1433 from a pair of August 2007 lows and December mid-month intraday low
The 200 day SMA at 1437

Support:
1387 is the April 2008 intraday high
The 90 day SMA at 1368
1374 is the March 2007 closing low
1370 is the August 2007 intraday low
The 50 day EMA at 1357
1326 is an ancient trendline
1325 from May 2006 peak prior to the summer 2006 correction
1317 is the early February low
1305 to 1302 from an August 2006 peak and matches a range of support from March and April 2006.
1294 from the January 2006 peak
1288 from June 2006
1280 from June and August 2006
1272.66 is the March 2008 low

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CPTI MAY POSITIONS

CPTI May Position #1 - SPX Bull Put Spread - 1388.82

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.

CPTI May Position #2 - RUT Bull Put Spread - 717.07

On 4/11, with the RUT at about 700, we sold 20 RUT May 600 puts and bought 20 RUT May 590 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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CPTI JUNE POSITIONS

CPTI June Position #1 - SPX Bull Put Spread - 1388.82

On 4/18, with the SPX at about 1392, we sold 20 SPX June 1235 puts and bought 20 SPX June 1225 puts for a credit of $.70 ($1,400). Maintenance is $20,000. We will look to put on a bear call spread in the future ? IF it makes sense.

CPTI JUNE Position #2 - RUT Bull Put Spread - 717.07

On 4/22, with the RUT at about 709, we sold 20 RUT June 590 puts and bought 20 RUT June 580 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 March profits, our new cash total is $60,460 ($58,660 $1,800).

ZERO PLUS POSITION - SPX - Bull Put Spread - 1388.82

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.

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SEMINAR DATES -

WASHINGTON D.C. - Aug. 9th & 10th

LAS VEGAS - June 21st & 22nd


60 OUT OF 65 PROFITABLE MONTHS!!
WANT TO ACHIEVE SUCCESS WITHOUT STRESS?
OF COURSE YOU DO!!
USE OUR CPTI WEALTH-BUILDING TECHNIQUES!

I will be presenting our two-day advanced CPTI seminars in Las Vegas on June 21st & 22nd (Saturday & Sunday) and in Washington D.C. on August 9th & 10th (Saturday & Sunday). Come on down! As of today, only six spots remain for the Las Vegas seminar.

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 your calendar and contact me as soon as possible. Send me your phone number 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 guarantee you?ll be impressed.

18 Early Birds
There were 18 early birds who saved $100 on the upcoming Las Vegas seminar by completing their reservation by April 11th.

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!

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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