Option Investor
Updates

AN INTERESTING WEEK AHEAD

HAVING TROUBLE PRINTING?
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What's new? Not much. The market hasn't been open since Thursday's column. At this writing, about 8 p.m. ET, the S&P futures are down more than 6 points. Don't panic yet, a lot can happen in the next 12 hours.

We can start paying close attention again if the S&P closes below the 1257 support level. In addition to the normal economic numbers, we're starting earnings season, which is always full of surprises.

If we get a bounce, it will likely be only temporary. I may actually look to put on a bear call spread, if given the opportunity. Be cautious and be prepared. As I said in Thursday's column, think defense first.

Discount Gas
Driving around the Detroit area, I noticed something I hadn't seen before. Some gas stations were offering a cash price about a dime less than the credit price. Visa and MasterCard typically take about 2.5% from the gas station owner while American Express takes about 3%. For a 20-gallon tank of gas that would be a savings of $2.00.

Now we'll see where priorities lie. Who among you will make that long long 30-foot walk from the gas pump to the counter to pay with cash and save that $2.00. Is it beneath you? Or do you know the value of a dollar? Remember, saving that $2.00 means that's another $3.50 you don't have to earn. It may seem small, but those small things add up.

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S&P 500 Support & Resistance
Closed at 1262.90
Resistance:
1270 is the January low
The 10 day EMA at 1291
The 18 day EMA at 1311
1317 from the February low
1324 is the April low
1331 is the June low
1344 is an ancient trendline
The 50 day EMA at 1346
1370 is the August 2007 intraday low
1374 is the March 2007 closing low
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 1410

Support:
1257 is the March low
1237 is the July 2006 low
1224 is the June 2006 low

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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 the'?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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Mamma Mia, Those Italians!
A Greek and an Italian were sitting in a Starbuck's one day discussing who had the superior culture.

Over triple lattes the Greek guy says, "Well, we have the Parthenon."

Arching his eyebrows, the Italian replies, "We have the Coliseum."

The Greek retorts, "We Greeks gave birth to advanced mathematics"

The Italian, nodding agreement, says, "But we built the Roman Empire."

And so on and so on until the Greek comes up with what he thinks will end the discussion.

With a flourish of finality he says, "We invented sex!"

The Italian replies, "That is true, but it was the Italians who introduced it to women."

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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!

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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