Option Investor
Updates

A ONE DAY REPRIEVE

HAVING TROUBLE PRINTING?
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How about that? A day we didn't go down - much. Actually, it was a relief. Will we continue going down? Probably. That's the obvious trend. But, at least, we'll have the benefit of three more days of time decay. It would be nice if today was the beginning of a relief bounce that would last for a few weeks, but I'm not holding my breath.

We now have about a 73-point cushion with our rolled-down July SPX position. We'll see if that's enough. Some traders chose to roll out to August. It's nice to have choices - along with the capital to make them happen.

We're still relatively safe (for the moment) with our RUT 620/610 bull put spread and there's no problem whatsoever with our RUT 810/820 bear call spread. As a matter of fact, if necessary, you can close that position for a nickel.

I would like to put on some more August positions, but I fear we will need the maintenance dollars for additional rollouts of threatened positions. So, we'll be patient and wait for the relief bounce the very oversold conditions indicate will happen in the near future. I anticipate the "near future" to mean within the next two weeks. However, if I'm wrong, we're going to have to be ready to do some fancy tap dancing.

We just went through the rolling process with our SPX 1250/1240 bull put spread. I received a lot of positive feedback on that column, saying it was a good explanation of the process. Go back and review it. Any new rollout action would require a rollout to the August cycle, as opposed to a rollout to the July cycle that we did on the SPX position. Come up with variations of your own if you choose. Think about your choices. Just be prepared to act when your GTFO level is hit. In this market environment, if you haven't already figured it out, we need to think defense first.

In the meantime, enjoy your 4th of July. Life goes on outside the market. At least that's what I'm told.

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NEW SEMINAR DATES ANNOUNCED!
After a very special sold out Las Vegas seminar last weekend, I've put together two new seminar dates along with Early Bird Special dates.

OCTOBER 4 & 5 - DALLAS, TEXAS

DECEMBER 6 & 7 - ORLANDO, FLORIDA

You will save $100 if you complete your reservation for the DALLAS seminar by August 17th. Your two days of education and enlightenment will cost only $895.00.

You will save $100 if you complete your reservation (including payment) for the ORLANDO seminar by October 1st. Your two days of education and enlightenment will cost only $895.00.

If you can, plan to say a third day. Mike Cavanaugh will be giving a comprehensive presentation on the Monday following the seminars. You are invited to attend - at NO CHARGE. Don't miss it.

Contact me as soon as possible. Send me your phone number (Contact Support) and I'll personally call you to reserve your spot and to answer any questions you may have. Both locations are great vacation spots. Plus, the earlier you get your airline tickets, the cheaper they'll be.

RETAKES
Seminar grads who want to schedule their free retakes should contact me immediately (mparnos@optioninvestor). There are only five retakes per seminar and are first come first served. They go quickly. He who hesitates stays home.

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Something To Chew On

When Philip K. Wrigley succeeded his father as chairman of the Chicago-based chewing-gum company, continued the firm?s practice of heavy spending on advertising to create and maintain consumer demand.

During a transcontinental flight, a seatmate asked him why he continued to spend so much money on advertising a product that was one of the best known in the world.

Wrigley quickly replied, "For the same reason the pilot of this plane keeps the engine running when we're already twenty-nine thousand feet up."


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CPTI JULY POSITIONS

CPTI July Position #1 - RUT Bull Put Spread - 698.14

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 - 665.78

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 - 1262.90

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. Position closed for debit of $3.05 ($6,100).

CPTI July Position #4 - SPX Bull Put Spread - 1262.90

On 6/27, with the SPX at about 1275 we rolled our 1250/1240 bull put spread position into a 25 contract 1190/1180 bull put spread for a credit of $.80 ($2,000). We will look for a bear call spread to complete the Iron Condor.

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CPTI AUGUST POSITION

CPTI July Position #1 - SPX Bull Put Spread - 1262.90

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 - 665.78

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 - 665.78

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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SEMINAR DATES -

DALLAS, TEXAS - October 4, 5 & 6

ORLANDO, FLORIDA - December 6, 7 & 8

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

I've negotiated a great low room rate for the weekend. 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) in Dallas and Orlando 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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