Option Investor
Updates

IT'S QUICKIE TIME - IF YOU DARE

HAVING TROUBLE PRINTING?
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It's that time again. Every month, with about a week left to expiration, we take a look at a few short term trades that we affectionately call "quickies." These trades are microcosms of the long term Iron Condors we typically do. The big difference is the short term aspect of the trade. Because a large portion of the premium for the near term month has eroded away, our cushions are substantially smaller.

The trade-off is that you're only exposed to the market for a short time - which can seem forever if the trade moves against you. The point is that these trades are risky, especially with the return of volatility in the past week. I, personally, do not trade the quickie trades. They're a bit too aggressive for my tastes.

These quickie trades are for aggressive traders who have a solid understanding of the strategies. They are for traders who have the time to monitor the trades and they have a large enough account size to allow them to adjust if/when necessary.

On the positive side, the quickie trades generally have a greater reward than our longer term portfolio trades. More risk generally equals more reward. Plus, if you check the results of the monthly quickie trades over the years, they are profitable surprisingly often.

Decide for yourself. I throw these ideas out there every month. They're not official CPT portfolio positions and, again, they have a larger degree of risk than our usual trades. So, for your entertainment, I offer you a few quickie ideas. Adjust the number of contracts and strikes to your personal account size and risk tolerance. Use these trades ideas as guidance. Nothing is etched in stone.

June Quickie Trade #1 - RUT Iron Condor - 719.84
Sell 20 June RUT 680 puts - RUYRP
Buy 20 June RUT 670 puts - RUYRN
Credit of about $.75 ($1,500)

Sell 20 June RUT 750 calls - RUTFJ
Buy 20 June RUT 760 calls - RUTFL
Credit of about $.70 ($1,400)

Total net credit and profit potential of $1.45 ($2,900). The maximum profit range is 680 to 750. The maintenance is $20,000. According to the deltas, there is about an 85% mathematical probability of success.

June Quickie Trade #2 - SPX Iron Condor - 1339.87
Sell 20 June SPX 1285 puts - SZPRQ
Buy 20 June SPX 1275 puts - SZPRO
Credit of about $.75 ($1,500)

Sell 20 June SPX 1385 calls - SXYFQ
Buy 20 June SPX 1395 calls - SXYFS
Credit of about $.75 ($1,500)

Total net credit and profit potential of about $1.50 ($3,000). The maximum profit range is 1285 to 1385. The maintenance is $20,000. According to the deltas, there is about an 83% mathematical probability of success.

Don't be fooled by the deltas. Don't get overly confident. The delta figures are purely mathematical and don't take into account all the emotional ups and downs of the market, along with the trends, etc.

In spite of the higher volatility and supposedly more premium, the cushions aren't as big as I would like. Even with only a week to go, we've seen the indexes (particularly the SPX) move almost 50 points in a single day. But, I guess that's what makes it exciting. Just be careful and make sure that if you're gonna dance, realize that, at some point, you have to pay the band.

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Renting An Apartment
A businessman met a beautiful call girl who agreed to spend the afternoon with him for $500. They did their thing, and, before he left, he told her that he did not have any cash with him, but he would have his secretary write a check and mail it to her, calling the payment 'RENT FOR APARTMENT.'

On the way to the office, he regretted what he had done, realizing that the whole event had not been worth the price. So he had his secretary send a check for $250 and enclose the following typed note:

'Dear Madam:
Enclosed find a check for $250 for rent of your apartment. I am not sending the amount agreed upon, because when I rented the place, I was under the impression that:
#1 - it had never been occupied;
#2 - there was plenty of heat; and
#3 - it was small enough to make me feel cozy and at home.
However, I found out that it had been previously occupied, that there wasn't any heat, and that it was entirely too large.'

Upon receipt of the note, the girl immediately returned the check for $250 with the following note:

'Dear Sir:
First, I cannot understand how you could expect a beautiful apartment to remain unoccupied indefinitely. As for the heat, there is plenty of it, if you know how to turn it on. Regarding the space, the apartment is indeed of regular size, but if you don't have enough furniture to fill it, please do not blame the management. Please send the rent in full or we will be forced to contact your present landlady
.

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A VEGAS CANCELLATION
One of the folks scheduled to attend the upcoming Las Vegas seminar contacted me to cancel because of a scheduling conflict. Prior to that, the Vegas seminar was SOLD OUT! This frees up ONE seminar spot. If you want to join us for an incredible weekend of fun and education, contact me as soon as possible - Contact Support

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CPTI JUNE POSITIONS

CPTI June Position #1 ? SPX Bull Put Spread ? 1339.87

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 ? 719.84

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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CPTI JULY POSITIONS

CPTI July Position #1 - RUT Bull Put Spread - 719.84

On 5/23, with the RUT at about 735, we sold 20 RUT July 620 puts and bought 20 RUT July 610 puts for a credit of $.65 ($1,300). Maintenance is $20,000.

CPTI July Position #2 - RUT Bear Call Spread - 719.84

On 5/28, with the RUT at about 732, we sold 10 RUT July 810 calls and bought 10 RUT July 820 calls for a credit of $.50 ($500). This bear call spread completes an Iron Condor for 10 of the RUT bull put spreads previously put on 5/23.

CPTI July Position #3 - SPX Bull Put Spread - 1339.87

On 5/30, with the SPX at about 1399, we sold 20 SPX July 1250 puts and bought 20 SPX July 1240 puts for a credit of $.60 ($1,200). Maintenance is $20,000. I?ll 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 May profits, our new cash total is $62,110 ($60,460 $1,650).

JULY ZERO PLUS POSITION - RUT - 719.84

On 5/20, with the RUT at about 721, we sold 30 RUT July 610 puts and bought 20 RUT July 600 puts for a credit of $.70 ($2,100). Maintenance is $30,000. We will look to put on a bear call spread in the future ? IF it makes sense.

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SHORT & SWEET - RUT - 719.84

On 5/18, we opened a new hypothetical Short & Sweet position, selling 4 December RUT 530 puts and selling 4 RUT 930 calls for a total credit of $10.30. Then, we purchased 4 of the July 550 puts and 4 of the July 890 calls to give us two months (June & July) of protection for $.60. Our net credit, thus far, is $9.70.

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JUNE BOSTON STRANGLE - SPX - 1339.87

On 5/30, we opened a new hypothetical Boston Strangle by selling 4 June 1365 calls and selling 4 June SPX 1435 puts for a gross credit of $87.50 and a net credit, and potential profit, of $17.50. This is an uncovered Boston Strangle position. Some traders, who don't have customer portfolio margining or a large enough account to trade uncovered index options, would have had to buy far OTM options to be able to participate in such a trade.

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SEMINAR DATES -

LAS VEGAS - June 21 & 22 - SOLD OUT!!


61 OUT OF 66 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). Come on down! As of Monday afternoon, the Las Vegas seminar was SOLD OUT

I?ve also negotiated a great 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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