Option Investor
Updates

QUICKIE TIME - AGAIN

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IT'S

The market is doing its thing. A little up, a little down and a little sideways. It looks like it's testing the recent up move. We'll see if it passes the test, or not. Regardless, our positions for both May and June are doing well. As a matter of fact, I know a number of traders who have already closed out some to make maintenance dollars available for other potential trades - perhaps for the Quickies that follow.

As always, let me warn you about the dangers of the Quickie trades. They are not official Couch Potato portfolio trades, and I personally do not trade them. The Iron Condor quickies are trades for experienced traders with larger trading accounts. Also, Quickie traders should have the time to monitor the markets. These are not necessarily the ?hands off? type of trades that we typically have in our official portfolio.

There really weren't any compelling trades out there tonight. I looked at a bunch of alternatives, but this is all I came up with. This might be a good month to step back and be a market voyeur - watch some other traders getting screwed. A peeping Tom is not a losing Tom - unless he gets caught, of course.

May Quickie #1 - SPX Iron Condor
Sell 20 May SPX 1350 puts - SXYQJ
Buy 20 May SPX 1340 puts - SXYQH
Credit of about $.80 ($1,600)

Sell 20 May SPX 1430 calls - SXZEF
Buy 20 May SPX 1440 calls - SXZEH
Credit of about $.65 ($1,300)

Total credit and profit potential of about $1.45 ($2,900). Maximum profit range of 1350 to 1430. Maintenance of $20,000. The VIX is under 20. It hasn?t been that low for a while. That?s why the profit range is smaller than usual. I?d love to have an extra 15-20 points on each side, but it?s not there ? not right now, anyway. That?s why these are dangerous.

May Quickie #2 - OEX Uncovered Put
Sell 10 May OEX 615 puts - OEYQC
Credit of about $.90 ($900)

Total credit and profit potential of about $900. I used a 10 contract position because there is substantial downside exposure. If you have customer portfolio margining maintenance available, your broker won't hold much for this position.

Also, look for an opportunity to close the position early to lock in a reasonable profit. You have to watch this one. If the OEX goes too far against your position, be prepared to GTFO when it hits your stop. What is your stop? It all depends on your risk tolerance and the size of your trading account.

May Quickie #3 - RUT Boston Strangle - 719.55
Sell 20 May RUT 700 calls - RUTET
Sell 20 May RUT 740 puts - RUTQH
Credit of about $45.30 ($90,600)

Total profit potential of $10,000. Maximum profit range is 700 to 740. If the RUT settles (at expiration) within the range, you get to keep the $10,000. You have an extra $5.30 cushion on each side.

Again, this is a strategy that will require substantial margin, unless you have the customer portfolio margining on your account. If you have the right broker, they offer it to clients - with some restrictions, of course.

This is also another uncovered strategy that requires attention and a larger trading account. We will also try to close the position early, if possible, to lock in a profit. Make sure to scale the number of contracts down or up, depending on your risk tolerance.

If you're just getting used to the Quickies, you could paper trade the above positions and see how you would have done. Paper trading is valuable when it comes to order placing and learning the mechanics of it all. However, I guarantee your feelings will change when you have real green stuff on the line.

Make sure to double check your option symbols before you trade. And, never trade a strategy you don't understand completely. If you don't understand a strategy that we use, you have two choices. 1) Go back and read the appropriate articles, or; 2) send me specific questions via email, or 3) Attend one of my seminars. It will speed up the learning process and potentially save you a ton of money.

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CPTI MAY POSITIONS

CPTI May Position #1 - SPX Bull Put Spread - 1397.68

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 - 719.55

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 - 1397.68

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 - 719.55

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 ? 1397.68

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!!
LEARN 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.

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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