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62 OUT OF 67 PROFITABLE MONTHS!!!

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ANOTHER PROFITABLE MONTH!!

It's like Deja Vu all over again. We just enjoyed our 62nd profitable month out of 67. Our short positions were never really threatened and it was a piece of cake - green, spendable, profitable cake.

I'm currently in Las Vegas with a roomful of astute students who are all smiles as a result of the June expiration - and justifiably so.

Some of my seminar attendees played the quickie trades which were also 100% profitable. The SPX Iron Condor put $3,000 into their pockets and the RUT Iron Condor put $2,900 in their pockets. They're going to have to either make less money or get bigger pockets. Gee, what a problem to have.

As part of the teaching process at the seminar, we're going over prospective Iron Condor positions in both the SPX and RUT. Thus far, we noticed that the July SPX 1405/1415 bear call spread looks enticing. Based on Friday's closing prices it appears we might be able to take in a credit of $.60, which isn't bad. I?m going to wait until tomorrow (Monday) to decide whether or not to make it an official CPT portfolio position.

I'll also let you know if we come up with something worthwhile for the RUT for July or August. We already have a RUT position for July, but none for August. It might be prudent to wait and see how the market moves before establishing an August RUT. Stay tuned . . .

I also noticed Friday's volume on the 1170/1160 August SPX bull put spread. It appears that a lot of folks who didn't get into the spread on Thursday, jumped in on Friday. I've heard from some who were proud to have received a credit of $.85 on the 1170/1160. Personally, I would have taken note that the market had moved down and would have moved the strikes down another 10 or 15 points and settled for the original $.65. Call me chicken, but I prefer the additional safety cushion to the extra $.20 of premium.

The Market

The market has seemingly made a decision on its direction - DOWN - at least for now. We have some July positions that might get a little hairy. Our SPX 1250/1240 bull put spread still has a 68-point cushion - which isn't as large as we would like. So, we?re going to see if a few support levels work.

I chose the 1250 puts because 1250 is seven points below the 52-week low. Does that mean anything? Who knows? We're going to find out.

Our RUT bull put spread position still has over 100 points of cushion. No problem for now. But we'll keep monitoring it.

The good part is that the market is making its move early in the option cycle, so we have a variety of adjustment/exit alternatives - if it continues down a little too far for our risk tolerance. When the move happens towards the end of the cycle, our choices are limited.

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TRACKING CPTI PORTFOLIO RESULTS
Welcome to our tracking of CPTI portfolio's year number eight! We've just completed the eighth month (June) of CPTI tracking year number six. Our positions for June were 100% profitable. Our profit for the eighth month of our sixth year was $2,500. In our sixth tracking year, we accumulated a profit of $17.260 ($14,760 $2,500).

RECAP OF JUNE POSITIONS
See Position Details in June Summary Below

SPX Bull Put Spread - PROFIT $1,400
RUT Bull Put Spread - PROFIT $1,100

JUNE PROFITS: $2,500

June Settlement Numbers
S&P 500: $SET - 1339.28
Russell: $RLS - 733.74
S&P 100: OEX - 597.13
MID: $MIV - 865.17

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SUMMARY OF CPTI JUNE RESULTS

CPTI June Position #1 - SPX Bull Put Spread - 1317.93

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). PROFIT: $1,400

CPTI JUNE Position #2 - RUT Bull Put Spread - 725.73

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). PROFIT: $1,100

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CPTI JULY POSITIONS

CPTI July Position #1 - RUT Bull Put Spread - 725.73

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 - 725.73

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 - 1317.93

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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CPTI AUGUST POSITION

CPTI July Position #1 - SPX Bull Put Spread - 1317.93

On 6/19, with the SPX at about 1342, we sold 20 SPX August 1170 puts and bought 20 SPX August 1160 puts for a credit of $.65 ($1,300). 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 - 725.73

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 - 725.73

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 - 1317.93

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.

The market violated our position. Most of the traders who emailed me, closed their position on Thursday when the SPX moved to 1347.50 and took a small loss of about $1,200 ($3.00 x 4 contracts). If you didn't get out of the position, and held it through settlement (which is not a good idea), you would have experience about a $3,000 loss).

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SEMINAR DATES -

LAS VEGAS - June 21 & 22 - In Progress

New Date To Be Announced Soon


62 OUT OF 67 PROFITABLE MONTHS!!
WANT TO ACHIEVE SUCCESS WITHOUT STRESS?
OF COURSE YOU DO!!
LEARN OUR CPTI WEALTH-BUILDING TECHNIQUES!

I am currently presenting our two-day advanced CPTI seminars in Las Vegas on June 21st & 22nd (Saturday & Sunday). Come on down! As of Friday 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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