Options Trading Newsletter – Options Trading Strategies That Work October 2014

Options Trading Newsletter

Where To Invest October 2014

How to trade binary options

October 6, 2014

Market Strategies Newsletter

Sample Issue

Where To Invest Now and

Options Trading Newsletter Covering:

Options Trading Strategies

How To Trade Options

Stock Options Trading Alerts

Best Stocks To Buy October 2014

Where to Invest October 2014

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Gain for the Week $ 915


Total Gains for 2014 Year $ 11,445

Over 114% Returns

Over 284% Gains In 2013

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In 2013 YTD gains were $28,479

Over 284% Returns

A $10,000 Portfolio would be worth $38,479



Options Trading Newsletter Options Trading Strategies

$10,000 Trading Account

There are 4 open positions:


AGQ October 51 Calls

FB October 80 Calls

JBLU October 10 Calls and

LVLT October 48 Calls


Funds in Use $ 1420


Gain for the Week $ 915


Gain for the Year $ 11,445


Over 114% Returns

Options Trading Strategies

Week 39 produced another gain of $875 bringing YTD gains to $11,415 or 114%.  Funds in use declined to $1,420 as I am still managing risk by using smaller positions.

The continuing expansion of daily ranges of the stock indexes is troubling to me.  The problem is the fact that this type of action usually signals a change in direction.  Since we are at all-time highs, the change would not be viewed as a positive development.

A trending market carries with it a great advantage for traders with any degree of patience.

Rotation from group to group allows us the opportunity to pick and choose our spots to initiate new positions.

A great example is this weeks trade in JBLU.  The stock and the group have had a great run, but several cross-currents surfaced recently and both have been weak.  JBLU was off 25% from it’s recent highs while  at the same time the price of fuel (as related by the price of oil) has declined dramatically during the same period. With the decline in the market JBLU had pulled back to an important area of support around  $10.25.  We bought the Oct. $10 calls @ $ .55 and the next morning we had already lost half of the position on the 100% Up Rule on a gap up to $1.20.  Increased volatility produces sharp moves in both directions, and while I tend to miss the turns,

I am happy to sit on the sidelines and wait for the “Trend is your friend” opportunities.

Another cross-current that has potential versus the oil is chemicals.  While DD has had a nice run, MON and MOS, both agricultural chemicals, are approaching support.  MON @ $105-108 and MOS @ $41-42 may prove to be great trades in the calls.

I will continue to be wary and risk averse in the coming weeks until  we get a clear direction.

Up until now we continue to go back to the 50-day moving average and rally.  Geopolitical issues being what they are, with gaps down based on overnight news, I’ll continue with smaller initial positions.



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Options Trade Alerts


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Market Strategies $10,000 Trading Account Trade Table

 New Trades

1) Buy 4 MOS November 42.50 Calls @ 1.05   ( or better )

2) Buy 6 ENDP October 75 Calls @ 0.45



10/03 Sold 5 JBLU October 10 Calls

( 100% profit Rule )

1.20           600        325 Gain
10/01 Sold 4 HOT October 84.35 Calls

( 50% Loss Rule )

0.42 168        200 Loss
09/30 Sold 3 WFM October 39 Calls

( From 09/15 )

1.03           309        156 Gain
09/30 Sold 6 AAPL October3rd  100 Calls 1.72 1032    354 Gain
09/30 Sold 5 FB October 80 Calls 1.52         760        280 Gain
09/30 Bought 5 AGQ October 51 Calls 1.00 500
09/30 Bought 10 JBLU October 10 Calls 0.55 550
09/25 Bought 6 AAPL October 3rd 100 Calls 1.13 678
09/25 Bought 10 FB October 80 Calls 0.96 960
09/22 Bought 4 HOT October 84.35 Calls 0.92 368
09/18 Sold 2 LVLT October 48 Calls

( 100% Profit Rule plus gap up leaving 3 lots long )

1.15         220         120 Gain
09/17 Sold 3 WFM October 39 Calls

( 100% Profit Rule plus gap up leaving 3 lots long )

1.10         330         177 Gain
09/15 Bought 6 WFM October 39 Calls 0.51 306
08/28 Bought 5 LVLT October 45 Calls

( Leaves 3 lots )

0.55 275

Remember, these trades are based on your participation in the

Subscriber Members Only



Previous closed out trades not listed here may be seen in previous market letters in the

VIP Subscribers Members Area.


Options Trading Strategies Notes: In Texting we have a limited amount of words. In the interest of brevity: we use 8=August , 9=September . The Quantity and Strike Price for each trade is specific.


We may trade weekly options and they are noted: SPY 1/25 147 for SPY Jan 25th 147 calls or puts.

Where to Invest October 2014

MARKET Laboratory – Weekly Changes

Prices are copied from Barron’s Weekly and Yahoo Finance and may be incorrect.








S&P 500








Russell 2000



Nasdaq 100




Gold (spot)




Silver (July)








Heating Oil




Unleaded Gas




Natural Gas








Put/Call Ratios

S&P 100



Put/Call Ratios

CBOE Equity





139-07 +1-19

3.18% -0.07%

10 Yr. Note

125-044 +224   2.49% -0.05%






CRB Inflation





B9arron’s Confidence







5 Yr. Note

118-154 +102

1.76% -0.01%






DJ Utilities

















M1 Money  Supply


September 22nd

M-2 Money



September 22nd

M1…all money in hands of the public, Time Deposits Traveler’s Checks, Demand Deposits
M2.. adds Savings and Money Market Accounts both compared with the previous year.


Market Strategies Technical Information

Support Levels S&P 500        1946

Resistance S&P 500              1985


Support Levels DOW          16,937

Resistance DOW                17,252


Support Levels QQQ            97.70

Resistance QQQ                100.30


Support Levels NASDAQ      4465

Resistance NASDAQ            4558


Best Stocks To Buy October 2014

New Stock Recommendations $ 100,000

Each stock is allocated a theoretical $ 5,000 share of the portfolio unless otherwise indicated.

Stock Purchase Price Purchase Date Stop/Loss   Price/Date Sold   Profit/(Loss)
UDOW 100 117.10      10/02 121.35x
JBLU  300 10.32      09/30
AGQ  100 47.29      09/30 45.60 10/03/14 ( $ 169 )
FCX 150 34.99      09/09
AUXL  200 18.55      08/29 29.39x
GALE 1500 3.05      08/11
GRPN  500 6.35      07/31
BCRH 300 19.45      07/10 17.25 sco
NBG 300   2.95      05/19
XRGYF 5000* 0.407      03/14
OSIR 300 15.94      02/13 14.12  09/04/14 ( $ 546 )
GRPN 500 10.40      01/28
RPTP 400 15.37      01/16
AA 300 10.06      01/10
WLT 300 16.22 12/23 4.09 09/15/14 ( $ 3,639 )
GSG 150 32.64 12/23 32.21 sco
NBG 300 4.08 8/12
TEXQY* 200 6.56 7/11
NBG 300 12.10 5/23
HL 1000 4.10 3/04 2.64 sco 2.64 09/29/14 ( $ 1,370 )
AAPL 35 76.85 11/08/12
REPR* 5000 0.22 10/22/12 .12 sco

Recommendations will be both listed in this letter and texted to members.

Previous closed out stock and option positions can be found in past Market Strategies Newsletter issues available in the VIP Subscribers Members Area.


Get The Options Trading Strategies Subscriber Members


Where To Invest Your Money Now

High Return Investments Trade Alerts

Go To: PrincetonResearch.com/alerts.htm

Options Trade Alerts

For those of you who do not buy puts to protect your portfolio, there are many ETF’s that are the inverse of the DOW. The symbols are DOG, DXD, SDS,TZA and RWM, which go up when the  DOW, S&P 500 and Russell 2000 go down and down when they go up. The DZZ goes up double when gold goes down.


Market Strategies $100,000 Trading Portfolio

Recommendations And Overall Comments

Stock Options Trading Alerts

New Trades:


Buy 8 MOS  November 42.50 Calls @ 1.05

Buy 12 ENDP October 75 Calls @ 0.45


There were three closed out option positions last week with a gain of $ 1,750.


There were two stock losing positions:

  • the Hecla Mining ( $ 1,370 ) and
  • 100 of the 200 shares of the AGQ,

a newly bought Ultra-Silver ETF sold for a small loss of ($ 169)


The weekly result showed a profit of $ 211.


For the full year now  we have gains of $ 27,687


There are several nice open stock positions:

A stock purchase of  Auxilium Pharmaceuticals was bought at $ 18.55 and now resides at $ 30.35.

A nice profitable trade was made in two new positions:

  • Jet Blue ( JBLU: $ 11.12 ) bought at $ 10 32 and
  • a double position in the ultra Dow ETF ( UDOW: $ 122.94 ) bought at $ 117.10.

We now have four options positions long:

AGQ October 51 Calls; FB October 80 Calls; JBLU October 10 Calls and the LVLT October 48 Calls.


There are open position losses of ( $ 7,785 ) NBG  has been costly but hopefully, Europe will get beyond geopolitical headwinds and will be roaring back .


The earthquake in California had put a damper on BCRH, which had  a stop close only stop at $ 17.55, but since they paid a nice dividend of $ 0.30 a share last week I lowered the stop to $ 17.25.


We have also been paid nice dividends in Nordic American  and JP Morgan which we did not count as well as commissions.


The Stock table has the following 19 positions:





The options call for a $ 2,500 investment unless otherwise stated; each stock position requires $5,000 unless specifically stated.


We are basing money management on a hypothetical

$ 100,000 and are using

$ 74,246 in 17 stock positions plus

$ 2840 in four options positions totaling

$ 77,086 with

$ 22,914 in cash.


These figures are approximate. We do not count commission costs and there may be errors.


Executions that have occurred at or near the open or close of trading sometimes vary from our actual numbers.  For example, when something opens down and it is through our price, we take the next trade whether it is an uptick or continues lower.  This sometimes results in a 50% trade that is slightly above or below the exact number.

How To Trade Options

Options Trading Newsletter

Previous Week’s Recommendations and

Rules for the Market Strategies

$100,000 Portfolio Trading Account

  • All options count for about $ 2,500.00 for model portfolio calculations unless otherwise stated
  • When the option has doubled sell half the position
  • Stop Loss protection is either half or offered with each trade
  • The cost of the option is the asking price (or the price between the bid and ask, whichever is more realistic)
  • The options will be followed until closed out.
  • Option Symbols are stock symbol with expiration month and strike price
Option COST Date Sold Date Profit/(Loss)
JBLU Oct 10

20 lots

10 lots open



09/30/14 1.20

( Sold Half on 100% Profit Rule

10/03/14 $ 650
AGQ Oct 51

10 lots



FB October 80

20 lots

10 lots open



09/25/14 1.52

Sold 10 half of the 20 lots

09/30/14 $ 560

12 lots



09/25/14 1.72 09/30/14 $ 708
FB Oct 77.50

8 lots



09/23/14 2.51 09/25/14 $ 720
HOT Oct 84.35

8 lots



09/22/14 0.42 10/01/14 ( $ 480 )
WFM Oct 39

12 lots

6 lots open

Calls 09/15/14 1.10

Sold half on 100% Profit Rule plus Gap



Sold Balance lower






$ 354




$ 312

LVLT Oct 48

12 lots

6 lots remain



08/28/14 1.15

Sold half on 100% Profit Rule plus Gap

09/18/14 $ 360

Note: Previous closed out stock and option positions can be found in past Market Strategies Newsletter issues available in the VIP Subscribers Members Area. 

Options Trading News

This Weeks’ Economic Numbers and Media Data

Monday China’s markets close for a national holiday.
Tuesday 10:00 hrs JOLTS- Job Openings ( NA vs 4.673 Mln )

15:00 hrs Consumer Credit August ( $ 20.0Bln vs $26.0 Bln )

Wednesday Monsanto Reports before the open ( -0.24 vs -0.47 )

Costco ( 1.52 vs 1.40 )

07:00 hrs MBA Mortgage Index 10/04 ( NA vs -0.2% )

10:30 hrs Crude Inventories 10/04 ( NA vs -1.363 Mln Bbls )

14:00 hrs FOMC Minutes

Alcoa Reports after the close: ( 0.22 vs 0.11 )

Thursday PepsiCo  ( 1.29 vs 1.24 )

08:30 hrs  Initial Claims 10/04 ( 295K vs 287K )

08:30 hrs Continuing Claims 09/27  ( 2425K  vs 2398K )

10:00 hrs Wholesale Inventories Aug ( 0.3% vs 0.1% )

10:30 hrs Natural Gas Inventories 10/04 ( NA vs 112K )

Friday Fastenal Reports before the open ( 0.45 vs 0.40 )

Progressive Property and

Casualty Insurance ( PGR 0.44 vs 0.39 )

08:30 hrs Export Prices Ex-Ag Sept ( NA vs -0.3% )

Import Prices Ex-Oil Sept ( NA vs 0.1% )

14:00 hrs Treasury Budget Sept ( NA vs + $75.1Bln )


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Market Strategies Fundamentals

Third quarter earnings reports begin this week with Yum Brands Tuesday, and then both Costco and Alcoa on Wednesday.  The effect of the strong dollar and weak commodity prices will be closely watched to see what effect they will have on earnings. The dollar Index gained 7.7% during the last quarter. This should certainly help consumers while providing some headwinds for manufacturing which had made so much progress since the great recession. As can be seen from the performance of Ford ( F: $ 14.59 ) – 1.74 on the week or -10.7%, there is a fear of pressure to possibly cut prices on what had been record high profit margins.  Otherwise, for companies that source materials overseas, such as the beleaguered Wal-Mart Stores ( WMT: $ 77.32 ) + 0.83 or 1.1%, could see a nice rebound. The Trade Balance and perennial deficit could also get much needed relief.


The U.S. trade deficit fell to $40.1 bln in August from a downwardly revised $40.3 bln (from $40.5 bln) in July. The Briefing.com consensus expected the trade deficit to increase to $40.9 bln. Much of the decline in the trade deficit was a result of lower oil prices. The net petroleum trade deficit fell to $13.1 bln from $14.5 bln, but the real petroleum balance was nearly flat at -$7.7 bln.  Exports increased by $0.4 bln, from $198.0 bln in July to $198.5 bln in August. Lead by a $0.3 bln increase in nonmonetary gold, exports of industrial supplies and materials increased by $0.7 bln. Other gains were found in capital goods ($1.0 bln) and consumer goods ($0.8 bln). Automotive exports declined by $1.7 bln. Import levels increased by $0.2 bln, from $238.3 bln in July to $238.6 bln in August.


Imports of industrial supplies and materials fell by $0.2 bln from lower crude oil purchases. This was offset by a $1.8 bln increase in capital goods, mainly from a $1.1 bln increase in civilian aircraft imports

Trade Deficit $40.1B $40.3B $40.8B $43.5B $46.0B
  Exports $198.5B $198.0B $196.2B $196.2B $193.9B
  Imports $238.6B $238.3B $237.0B $239.6B $239.9B

What Should I Invest In

Market Strategies Economic Data

Non-farm payrolls added 248,000 jobs in September following an upwardly revised 180,000 (from 142,000) job gain in August. The Briefing.com consensus expected nonfarm payrolls to increase by 210,000. Stripping out government jobs, private payrolls added 236,000 jobs in September after adding an upwardly revised 175,000 (from 134,000) in August. That gain topped both the consensus forecast of 205,000 new jobs and the September ADP report, which expected a gain of 202,000.


The unemployment rate fell to 5.9% from 6.1%, which easily beat consensus expectations of 6.1%.

The establishment portion of the employment data showed solid improvements in September.

The hourly workweek ticked up to 34.6 hours from 34.5 hours and hourly earnings growth was flat. Overall aggregate earnings increased 0.5%, which is strong enough to drive an acceleration in consumption growth. These gains are in-line with the improvements in the initial claims level, which recently found a new stabilization level below 300,000.


The household survey added some confusion over the strength of the improvements. If the economy was moving toward full employment, then discouraged workers should return to the labor force and drive the participation rate higher. That did not happen in September. While the unemployment rate fell to 5.9% from 6.1%, much of the gain came from the 97,000 person decline in the labor force.

If the participation rate remained at August levels, the unemployment rate would have remained at 6.1%.

Undervalued Small Cap Stocks


We have bought positions in each of these companies.
Target Energy* ( TEX.AX  0.05  Australia ), In the USA, ( TEXQY: $ 5.50 ) a new ADR.


This company trading at a nickel could earn more than where it is now trading. Perhaps 7 to 10 cents is in the cards. Their business valuation exceeds market cap.


Leo Motors ( LEOM $ 0.07 )*


Has merged with LGM,  a potential to be the Tesla of Asia. We like it now, above its 13-day moving average. Please go to www.leomotors.com ( English Version ) Risk is 2 cents. You will be hearing about a new short-circuit technology very soon. Many new breakthroughs in electric energy  are coming! Look at their most recent 8K.


Cleveland BioLabs, Inc ( CBLI $ 0.44 )*


CBLI has done much research on cancer as well as developing a prevention for radiation sickness. Just imagine the catastrophe if radioactive material falls into the wrong hands. The Russian Medical Federation has invested heavily in this.  Entolimod is being developed as a radiation treatment.


To learn more about Cleveland BioLabs, Inc., please visit the Company’s website at http://www.cbiolabs.com.

Cleveland BioLabs (CBLI) Announces

Green Light to Submit

Pre-Emergency Use Authorization Application for Entolimod

See news


Labor Smart, Inc. ( LTNC: $ 0.068 )* 

Top line sales growth is significant. They deliver labor solutions at assigned jobsites ready for work while other services are still sending candidates to be interviewed.  Labor Smart delivers people-power to small and medium sized businesses in warehousing, freight handling, light industrial services, manufacturing, social events, and retail industries. They also support commercial construction and demolition industries with general labor and skilled trades people. Labor Smart was founded in 2011, is based I Hiram, Georgia and currently operates 30 branch locations in the Southeast and Central States. Their growth model includes both new office establishments in addition to acquisitions.

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Market Strategies Economic Cycles

Triple Witching, End Q3, Strong Dollar & Geopolitics Deliver Seasonal Dip Setting Up Q4 Rally

Last week we called an audible on the blog and suggested buying into any market weakness during the Rosh Hashanah holiday instead of the usual trade of selling ahead of the holiday and buying on or before Yom Kippur. Over the years we have observed market weakness during this brief period. But this year we felt that with the market selling off as it often does in the week after Q3 triple witching (last week), Rosh Hashanah would be a better entry point than exit.

So far the close last Thursday on the first day of Rosh Hashanah was the low of this minor end-of-September correction. Yom Kippur may prove to be just as fine an entry point as the stock market appears to be consolidating here over the past few days. Despite some rather tense situations overseas, broad commodity weakness and a strong dollar, the U.S stock market has been rather resilient.

The small-cap Russell 2000 index is down about 6.5%. It has broken through monthly support and is testing the August lows. The next support level is around 1080 near the February and May lows. Russell 2000 has also been inflicted by the infamous “death cross” where its 50-day moving average fell below its 200-day last week. Small caps have been leading the market higher and lower this year, so this needs to be watched. But for now the major large cap indices (DJIA, S&P & NASDAQ) are only off 2.5%-3.0% since the high early this month.

This is a puny pullback in the face of pro-democracy protestors taking it to the streets of Hong Kong, continued cold war style maneuvering with Russia, near-regular war with the Islamic State and the midterm elections on the horizon – not to mention the end of quantitative easing. In the accompanying “Market at a Glance” and the “Pulse of the Market” below note the improved sentiment picture, where excessive bullish has eased, technical and internals are getting oversold and the sweet spot of the year and 4-year cycle are upon us.

We may yet see lower prices and a bottom in October though we do not anticipate any major correction. In fact the current weakness has facilitated the addition of many positions that we had implemented buy limits on well below the market in late August and early September.


Current market weakness could be setting up October 2014 to be another “turn-around” month.


Midterm election year Octobers have been downright stellar thanks to the major turnarounds mentioned above; ranking number one on the Dow, S&P 500, NASDAQ and Russell 1000 and second for Russell 2000. This is also the beginning of the sweet spot of the four-year-presidential-election-cycle. The fourth quarter of the midterm years combines with the first quarter of the pre-election years. However, this year we are encumbered with geopolitical events that are unsettling the whole world notwithstanding the markets.


Stocks to buy on a September dip

Symbol Name Business Description PE P/S MV mln Price Buy Limit Stop Loss
APT Alpha Pro Tech Medical  Disposables 18 1.1 5.1 3.24 2.42 2.21
IIIN Insteel industries Metal fabrication 29 0.7 411 19.82 21.22 18.50
KR Kroger Retail Food 17 0.24 24.6K 48.28 48.90 46
XOM Exxon Mobil Energy 13.4 1.1 420K 93.92 94.40 89
SIL Silver Miners ETF Silver ETF NA NA 10.98 10.93 10.41
UAL United Cont Hld Transportation 16 1.2 18.1K 48.28 46 43
CAT Caterpillar Construction 18.24 0.46 67.4K 107.31 104.60 101
BELFB Bell Fuse Inc B Electronics 9.5 0.74 276 23.60 23 21.50
SPXU Ultra Short S&P Hedge purposes 45.62 43.20 41
VXX VIX Volatility Hedge Portfolio 29.62 27.10 26
SAN Banco Santander World Banking 18 2.73 118.6K 9.22 9.30 8.50
MOS Mosaic Company Agriculture Chemicals 70 2.10 42.61 42.28 38.70

Highlighted numbers indicate execution


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Rule 17B Attestations and Disclaimers

Princeton Research, Inc. has approximately 2,581,578 shares of AIVN both free and restricted and represents them for Investor relations. Princeton also has about 40,000 shares of TXGE. Princeton is paid $ 1,500 per month from RMS Medical Products. Princeton has bought 81,100 shares of RMS Medical Products. Princeton has been paid $ 2,500 to write a report on Xinergy. Princeton has signed a contract with CBLI to be paid $ 2500 for July and August. for investor relations. Princeton has been engaged by Target Energy. No contract is currently in place. Princeton was paid about 500,000 restricted shares of Leo Motors.


When there is no movement in penny stocks, even though there is none or very small losses, we will liquidate ( sold AIVN on stop ) even though we like the company, if money is needed for better opportunities.


We now believe REPR represents upside opportunity. The Target ADR trades at about $ 4.50 in U.S. vs 0.05 in Australia. Princeton owns 400,000 Australia shares and about 900 U.S. ADR’s.


Pursuant to the provisions of Rule 206 (4) of the Investment Advisers Act of 1940, readers should recognize that not all recommendations made in the future will be profitable or will equal the performance of any recommendations referred to in this e-mail issue. Princeton may buy or sell its free-trading shares in companies it represents at any time.



Please Direct All Inquiries To:


Mike King

(702) 650-3000



Princeton Research

3887 Pacific Street,

Las Vegas, Nevada 89121

how to invest $10000

Where to invest October 2014