April 13, 2010 – More Of The Same

 

MORE OF THE SAME

 

Hi Gang,

 

The market remained pretty close to even all day.  Tomorrow might be a different story.  Intel came out with some excellent earnings after the bell.  Their earnings have been known to move the market a bit.  However, after hours, Intel is trading about even with today’s close.  Sometimes it takes a few hours, or even a day or two, before the market reacts.

 

The S&P was up less than a point and the RUT was up slightly less than two points

 

Regardless, there isn’t any indication the market is going to pull back right away.  But, life is full of surprises.

 

We’ll just sit back and watch for awhile.  In earnings season, it’s highly unusual for it to be all good news.   Our positions are in good shape — at least for now.  We can sleep well tonight.

 

I’m going to try and come up with a few interesting quickie trades.  Like the last two months, it’s not going to be easy.  Recently, the VIX made a new 52-week low – at 15.23.  There’s not much premium out there.

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A Letter To Sandra Bullock’s Husband

 

Jessie James,

You Stupid Bastard!  You cheated on Sandra Bullock?

How in the world can you be so stupid?  You are married to one of the most beautiful women in the world.

She has a body to die for and her current wealth shadowed only by Oprah.

Your wife, recently beat out Julia Roberts in the polls and is now named “America ‘s Sweetheart.”  

You also remember, she just won an Oscar and praised you up and down in front of the world while you were porkin’ away.

You are really a piece of work!  You are the most hated asshole cheater on the planet!  

How can you live with yourself!

I only have one thing to say to the despicable, miserable, cheating piece of crap that you are:

Thanks for taking the heat off of me for a while.  Let’s do lunch.

 -Tiger

 

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THE SEMINAR:  LAS VEGAS, MAY 22 & 23 – ONLY FIVE SEATS LEFT!

FREE RETAKE!  FREE BOOK (Option Profits: The Naked Truth)

If you seriously want to learn our strategies, learn how to hone your trading skills, and how to treat trading as a business, respond to this email with your name and phone number.  I will personally call you to go over the details and to answer any questions you may have.   It will be a two-day experience you won’t soon forget – unlike any other seminar you have attended.  (See more information on the seminar below)

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MAY CORE PORTFOLIO POSITIONS

May Position #1 – RUT Iron Condor – 707.03

On 4/7, with the RUT at about 701, we sold 10 May RUT 620 puts and bought 10 May RUT 610 puts for a credit of $.55 ($550).  We also sold 10 May RUT 760 calls and bought 10 May 770 calls for a credit of $.55 ($550).  Total net credit of $1.10 ($1,100).  Maintenance is $10,000.

 

May Position #2 – CME Iron Condor – 309.70

On 4/7, with CME at about 314, we sold 10 May CME 270 puts and bought 10 May CME 260 puts for a credit of $.55 ($550).  We also sold 10 May CME 360 calls and bought 10 May CME 370 calls for a credit of $.55 ($550).  Total net credit of $1.10 ($1,100).  Maintenance is $10,000.

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APRIL CORE PORTFOLIO POSITIONS

April Position #1 – SPX Iron Condor – 1197.30

On 2/25, with the SPX at about 1087.50, we sold 10 April SPX 950 puts and bought 10 April SPX 940 puts for a credit of $.55 ($550).  Then, we sold 10 April 1185 calls and bought 10 April 1195 calls for a credit of $.55 ($550).  Total net credit of $1,100.  Maintenance is $10,000. 

 

On 3/9, we closed the 1185/1195 April SPX bear call spread for a debit of $1.90.  We currently have a deficit of $.80.

 

April Position #2 – CME Bull Put Spread – 309.70

On 3/9, with the CME at about 308, we sold 10 April CME 260 puts and bought 10 April CME 250 puts for a credit of $.50 ($500)

 

April Position #3 – RUT Iron Condor – 707.30

On 3/12, with the RUT at about 674 we sold 10 April RUT 600 puts and bought 10 April RUT 590 puts for a credit of $.50 ($500).  Then, we sold 10 April RUT 730 calls and bought 10 April RUT 740 calls for a credit of $.55 ($550).  Total credit of $1.05 ($1,050).   On Friday 3/26, closed the 730/740 bear call spread for $.35. 

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EDUCATIONAL POSITION PORTFOLIO

This portfolio highlights trades using alternative strategies – beyond our official Iron Condor and basic credit spreads. 

 

Educational Position #1 – AAPL SRS July Position – 243.00

On Monday, with Apple at about 193, we sold one the July 170 put for $10.55.  Then we bought one July 190 call for $21.40 and sold one July 220 call for $9.95.  All of this was done for a debit of $1.30.  That means we own a long July 190 call at a cost of $1.30 with a potential profit of $28.70 – IF Apple rallies and closes above 220.

 

Educational Position #2 – MOS Calendar Spread – 56.17

We are monitoring this calendar spread, having used the September $45 call as a surrogate for the stock position.  We bought the Sept. 45 call for about $15.40 and sold the April 60 call for $2.82 resulting in a net debit of $12.58.

 

Educational Portfolio #3 – FSLR SRS September Position – 126.81

On Monday, 3/15, with FSLR at 115.50, we sold 10 Sept. FSLR 100 puts, Bought 10 Sept. FSLR 115 calls and sold 10 Sept. FSLR 140 calls for a debit of $.65 ($650).

 

Educational Portfolio #4 – QCOM SRS October Position – 42.43

On Monday, 3/15, with QCOM at 38.95, we sold 10 Oct. QCOM 33 puts, bought 10 Oct. QCOM 39, and sold 10 Oct. QCOM 44 calls for a debit of $.50 ($500).

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ONGOING LONG-TERM PORTFOLIO

This portfolio highlights long-term positions that we monitor for conservative traders. 

 

A few years ago, I outlined a Zero-Plus 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’ve been 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 recent profits, our cash total is $79,465 ($77,990 + $1,475).

 

ZERO PLUS POSITION –  We’re Looking . . .

After another nicely profitable trade for the March cycle (Profit: $1,475), we are now looking for a new Zero Plus position.  Stay tuned . . .

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WHAT YOU WILL LEARN AT THE SEMINAR

In our seminar, we spend two days thoroughly going over our advanced trading strategies – Iron Condors, .  What makes a new seminar even more enticing is that, since 2008, we’ve added more excellent strategies to our arsenal.

 

The cost of my advanced two-day seminar is only $895.  Plus, every paid attendee will get a FREE COPY of my book – “OPTION PROFITS: The Naked Truth.”  Also, every paid attendee will be entitled to a FREE RETAKE of the seminar.   All attendees will also receive a complete loose-leaf of documentation of all the strategies discussed at the seminar.

 

I limit the number of attendees to 25.  We’ll all get to know each other.  It’s a personal and interactive seminar where you will feel free to ask questions at any time.

 

Also discussed at the seminar are bid/ask spread negotiation, maintenance alternatives, portfolio construction, risk management, dealing with market makers, reading between the lines of an option chain, finding premium where there seems to be none, entities, taxes and a lot more.  Each subject is discussed at length.

 

A number of our subscribers have taken the seminar before and are entitled to their retake.  If you are entitled to a retake, send me your name and phone number, your location preference 1 & 2.  There are a limited number (5) of retakes for each seminar.  They will be assigned on a first come, first served basis.

 

I’m going to try to accommodate as many traders as possible, so don’t hesitate to contact me with your preferences.  One thing I’ll guarantee you.  You will learn a lot and you will have a seminar experience that you won’t forget!

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RENEWAL PROCESS

The renewal process is pretty simple.  We’ve done quite well this past year.   More than likely, you will want to continue to receive our thoughts, insights, ideas and trade suggestions.  We had a successful 2009 and are doing well in 2010.

 

When your renewal date is hit, your subscription will automatically be renewed based on the information you provided when you originally subscribed.  The rate has not changed.  It’s still less than half the profit of a single trade.  You will continue to receive all the subscriber benefits for the same low bargain price ($495) as last year.  Thanks to all of you who make this job a labor of love.

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OPTION PROFITS: The Naked Truth

My book “Option Profits: The Naked Truth” are now available only at Traders Press.  The link to Traders Press to order the book is:

 

http://www.traderspress.com/detail.php?PKey=628 

 

View the table of contents, a preface and actual reviews of the book (I’ll give you a hint: – they like it – a lot).  Check it out.

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Disclaimer   
Opinions and information in this newsletter are provided for educational purposes only.  No statement in the newsletter should be construed as a recommendation to buy or sell a security or to provide investment advice. It is possible at this or some subsequent time, the editors or staff of Mike Parnos’ newsletter may own, buy or sell securities discussed.  All investors should consult a qualified professional before trading in any security. Stock and option trading involves risk and are not suitable for all investors. The information provided has been obtained from sources deemed reliable but is not guaranteed as to accuracy and completeness.