Option Investor
Updates

HAPPY FATHER'S DAY

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Hope all you fathers had a great day with your kids. Your mind should have been free to enjoy the day since our June positions are in excellent shape. We are well on our way to profitable month #62. It's a good feeling - a feeling that Couch Potato subscribers should be pretty familiar with by now.

Friday's pop up was nice to see, but can it continue? Next week there will be a lot of economic data along with the volatile oil prices. Oil is starting to have a dramatic effect on consumer spending. Ford reported last week that it wasn't selling many trucks - and hasn't been since gas reached $3.50/gallon. I sure understand that. It cost me about $180 in gas this past month and we don't go anywhere! I don't know how those folks who commute an hour to work every day can afford it.

This week the markets broke down through a variety of support levels. Friday's action doesn't look to be direction changing. I'm lousy at picking directions, but, if I had to guess, I figure we might continue down a bit.

Boston Strangle
Remember, we took in 87.50 of premium when we sold the June 1365 calls and the 1435 puts. Well, based on Friday?s closing prices, it seems we may be able to buy back the short 1435 puts for about $76. It may be a little less due to the additional two days of erosion and/or if the market opens up. It would cost about $9.70 to buy back the short $1365 call for a total of $85.70. The net profit, at this point, would be about $1.80 (x 4 contracts = $720).

Personally, it's a little early for me to be closing the position. I'm going to hang on and see what happens.

Short & Sweet Update
Well, we couldn't ask to be in a better position. We're short the RUT December 530 puts and 930 calls and the RUT is hanging around at 733.61. Again, this position is just a matter of patience. If the market hadn't tanked down and the VIX spiked up this month, we might have had an opportunity to close it early for a nice little profit. So, we wait. No problem.

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ONE VEGAS SPOT REMAINS - Last Minute Opportunity
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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S&P 500 Support and Resistance
Closed at 1360.03
Resistance:
1362 is the 90 day SMA
1370 is the August 2007 intraday low
1374 is the March 2007 closing low
The 50 day EMA at 1378
1387 is the April 2008 intraday high
1396 is the February 2008 peak
1406 is the August and November 2007 closing low
The 200 day SMA at 1421
1433 from a pair of August 2007 lows and December mid-month intraday low
1434 is a longer term trendline from the August 2003/September 2004 lows
1446 from the December low
1460 is the February 2007 peak
1481 represents several peaks and lows ranging from April 2007

Support:
1350 where it held early in the week.
1336 is an ancient trendline that held last week
1324 is the April low
1317 from the February low
1270 is the January low
1257 is the March low

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CPTI JUNE POSITIONS

CPTI June Position #1 - SPX Bull Put Spread - 1360.03

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 - 733.61

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 - 733.61

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 - 733.61

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 - 1360.03

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 - 733.61

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 - 733.61

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 - 1360.03

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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