October 2014
Where To Invest Now
Options Trading Strategies
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September 29, 2014 Options Trading Strategies Newsletter
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September 29, 2014
Market Strategies Newsletter
Sample Issue
Options Trading Newsletter Covering:
Options Trading Strategies
How to trade Options
Stock Options Trading Alerts
Best Stocks To Buy October 2014
Top Stocks To Buy
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
The last 3 years our gains have gotten progressively greater year over year.
284% Returns for $28,400 Profits In 2013
171% Returns for $17,100 Profits In 2012
77% Returns for $7,700 Profits In 2011 (only 33 weeks)
Options Trading Newsletter
Options Trading Strategies
$10,000 Trading Account
There are 5 Open Positions:
AAPL October 3rd 100 Calls
FB October 80 Calls
HOT October 84.35 Calls
LVLT October 48 Calls and
WFM October 39 Calls
Funds in Use $ 2324
Gain for the Week $ 465
Gain for the Year $ 10,530
Over 105% YTD Returns
Options Trading Strategies
$10,000 Account
Traders Comments
Funds in use has again ballooned to $2,324 as we had a good “shake out” of long positions.
This was the 10th time since January 2013 that the S&P500 was either at or slightly below the 50 day moving average. Each time we were down between 2.5% and 4% and each time werallied to new highs.
While we could certainly turn down again and test S&P500 1940, we have open equity in the AAPL, HOT and FB trades and LVLT and WFM are the leftover half positions from liquidations on the 100% Up Rule.
The market’s volatility for the past 2 weeks is a stunning departure from the past year or so.
We had triple digit moves in 7 of the last 9 days in the Dow. While the volume hasn’t been dramatic, this is the type of daily range expansion that erupts into big moves one way or the other.
Right now everyone is talking about the coming rise in rates and guessing it’s up, but I’m still not so sure. The more trouble with the slowing EU economies, and the Yen’s extended weakness and the Euro’s decline the better off we look. However, all of those are deeply oversold. The Yen (which closed at another new low) and the Euro could have some major “bounce” potential.
I’d look for a better opportunity in USD ($) and the US 10-year note for an entry point.
There are no new trades tonight since we go into another week with 5 open positions, I will text new trades.
…CAM
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Market Strategies $10,000 Trading Account
Trade Table
| DATE | TRADE | PRICE | COST | PROCEEDS | RESULTS |
| 09/25 | Bought 6 AAPL October 3rd 100 Calls | 1.13 | 678 | ||
| 09/25 | Bought 10 FB October 80 Calls | 0.96 | 960 | ||
| 09/25 | Sold 4 FB October 77.50 Calls | 2.51 | 1004 | 360 Gain | |
| 09/24 | Sold 10 WMT October 77.50 Calls | 0.71 | 710 | 210 Gain | |
| 09/23 | Bought 4 FB October 77.50 Calls | 1.61 | 644 | ||
| 09/22 | Bought 4 HOT October 84.35 Calls | 0.92 | 368 | ||
| 09/22 | Bought 10 WMT October 77.50 Calls | 0.50 | 500 | ||
| 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 | |
| 09/16
09/24 |
Sold 5 FCX October 35 Calls ( 100% Profit Rule Leaves 5 lots long ) ..Sold Balance on the 50% Loss Rule | 0.84
0.21 |
420
105 |
210 Gain
105 Loss |
|
| 09/16 | Bought 10 FCX October 35 Calls | 0.42 | 420 | ||
| 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
TEXTING SERVICE TO RECEIVE ALL UPDATES.
Previous closed out trades not listed here may be seen in previous market letters in the
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.
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MARKET Laboratory – Weekly Changes
Prices are copied from Barron’s Weekly and Yahoo Finance and may be incorrect.
| Dow
17,113.15 -0.96% |
Nasdaq
4512.19 -67.59 |
S&P 500
1982.85 -27.55 -1.37% |
Transportation
8484.91 -148.92 -1.72% |
Russell 2000
1119.33 -2.41% |
Nasdaq 100
4053.72 -46.37 -1.13% |
| Gold (spot)
1214.10 -1.20 -0.1% |
Silver (July)
1753.7 -30.7 -1.7% |
Crude
93.54 +1.13 +1.2% |
Heating Oil
270.24 -2.04 -0.8% |
Unleaded Gas
2.4881 -0.0389 -1.5% |
Natural Gas
4.029 +0.126 +3.3% |
| VIX
14.85 +2.74 +22.6% |
Put/Call Ratios
S&P 100 122/100’s +33/100’s |
Put/Call Ratios
CBOE Equity 69/100’s 9/100’s
|
Bonds
137-20 +1-01 3.25% -0.03% |
10 Yr. Note
124-14 + 14 2.54% -0.04%
|
Copper
303.55 -5.60 -1.8% |
| CRB Inflation
Index 280.28 +0.88 +0.3% |
B9arron’s Confidence
69.0% -0.7% |
S&P100
885.25 -11.84 -1.32% |
5 Yr. Note
118-052 +075 1.77% -0.04% |
Dollar
85.64 +0.90 +1.1% |
DJ Utilities
547.95 -8.96 -1.61% |
| AAII
Confidence Index |
Bullish
41.8% -0.4% |
Bearish
28.3% +5.3% |
Neutral
29.9% -4.9% |
M1 Money Supply
+13.29% September 15th
|
M-2 Money
Supply +6.59% September 15th |
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 1966
Resistance S&P 500 2012
Support Levels DOW 16,937
Resistance DOW 17,352
Support Levels QQQ 97.70
Resistance QQQ 100.30
Support Levels NASDAQ 4465
Resistance NASDAQ 4558
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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) | ||
| FCX 150 | 34.99 | 09/09 | |||||
| AUXL 200 | 18.55 | 08/29 | |||||
| GALE 1500 | 3.05 | 08/11 | |||||
| GRPN 500 | 6.35 | 07/31 | |||||
| BCRH 300 | 19.45 | 07/10 | 17.55sco | ||||
| 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 | ||||
| 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.
TEXTING SERVICE TO RECEIVE ALL UPDATES.
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
There were three closed out option positions last week causing a gain of $ 1,170.
Charles has continued a “hot” hand during the difficult months of August and September. He has done very well with Apple, FB, LVLT, WFM, the TBT and Kroger, while losing on FCX.
A stock purchase of Auxilium Pharmaceuticals was bought at $ 18.55 and now resides at $ 31.03.a gain of 66%.
He took a bad loss in WLT, a beleaguered coal stock during this dismal period of dollar strength and commodity weakness.
We now have five options positions long.
For the full year now we have gains of $ 27,476
Open position losses remain at $ 5,961
NBG has been costly but hopefully, Europe will get beyond geopolitical headwinds and will be roaring back . The earthquake in California has put a damper on BCRH, which has a stop close only stop at $ 17.55, narrowly missed last Friday when they went ex-dividend.
We also have not counted dividends received on stocks like Apple, Nordic American (NAT),
BCRH and JP Morgan.
The Stock table has the following 17 positions:
AA, AAPL, AUXL, BCRH, FCX, GALE, GRPN (2),
GSG, HL, NBG (3), REPR, RPTP, TEXQY, XRGYF
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
$ 58,811 in 17 stock positions plus
$ 4648 in five options positions totaling
$ 63,459 with
$ 36,541 in cash.
These figures are approximate. We do not count commission costs and there may be errors.
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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) |
| FB October 80
20 lots |
Calls
0.96 |
09/25/14 | |||
| AAPLOct3rd100
12 lots |
Calls
1.13 |
09/25/14 | |||
| FB Oct 77.50
8 lots |
Calls
1.61 |
09/23/14 | 2.51 | 09/25/14 | $ 720 |
| WMT Oct 77.50
20 lots |
Calls
0.50 |
09/22/14 | 0.71 | 09/24/14 | $ 420 |
| HOT Oct 84.35
8 lots |
Calls
0.92 |
09/22/14 | |||
| FCX Oct 35
20 lots 10 lots remain |
Calls
0.42 |
09/16/14 | 0.84 Sold Half on 100% Profit Rule 0.21 Balance sold on 50% Loss Rule | 09/16/14
09/24/14 |
$ 420
( $ 210 ) |
| WFM Oct 39
12 lots 6 lots open |
Calls | 09/15/14 | 1.10 Sold half on 100% Profit Rule plus Gap | 09/17/14 | $ 354 |
| RPTPSept12.50
4 lots Short |
Calls
0.65 |
08/29/14 | 0.65 expired worthless | 09/22/14 | $ 240 |
| LVLT Oct 45
10 lots 5 lots remain |
Calls
0.55 |
08/28/14 | 1.15 Sold half on 100% Profit Rule plus Gap | 09/18/14 | $ 300 |
Note: Previous closed out stock and option positions can be found in past Market Strategies Newsletter issues available in the VIP Subscribers Members Area.
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This Weeks’ Economic Numbers and Media Data
| Monday | 08:30 hrs Personal Income August ( 0.3% vs 0.2% )
Personal Spending ( 0.4% vs -0.1% ) CORE PCE Prices ( 0.0% vs 0.1% )
10:00 hrs Pending Home Sales ( -0.2% vs + 3.3% ) |
| Tuesday | 09:00 hrs Case Schiller 20-city Index July ( 7.4% vs 8.1% )
09:45 hrs Chicago PMI Sept ( 61.5 vs 64.3 ) 10:00 hrs Consumer Confidence September ( 92.0 vs 92.4 ) |
| Wednesday | 07:00 hrs MBA Mortgage Index 09/27 ( NA vs -4.1% )
08:15 hrs ADP Employment Change ( 202K vs 204K ) 10:00 hrs ISM Index Sept ( 58.5 vs 59.0 ) 10:00 hrs Construction Spending Aug ( 0.4% vs 1.8% ) 10:30 hrs Crude Inventories 09/27 ( NA vs -4.273 Mln Bbls ) 14:00 hrs Auto Sales September ( NA vs 6.2 Mln ) 14:00 hrs Truck Sales Sept ( NA vs 7.9 Mln ) |
| Thursday | ECB Governing Council meets followed by announcements of quantitative easing or interest rate cuts:
07:30 hrs Challenger Job Cuts September ( NA vs -20.7% ) 08:30 hrs Initial Claims 09/27 ( 297K vs 293K ) 08:30 hrs Continuing Claims 09/20 ( 2458K vs 2439K ) 10:00 hrs Factory Orders Aug ( -9.3% vs 10.5% ) 10:30 hrs Natural Gas Inventories 09/27 ( NA vs 97 bcf ) |
| Friday | 08:30 hrs Nonfarm Payrolls Sept ( 210K vs 142K )
08:30 hrs Nonfarm Private Payrolls Sept ( 205K vs 134K ) Unemployment Rate ( 6.1% vs Same ) Hourly Earnings Sept ( +0.2% vs Same ) Ave Workweek Sept ( 34.5 vs Same ) 08:30 hrs Trade Balance August ( -$40.9Bln vs -$40.5Bln ) 10:00 hrs ISM Services September ( 58.9 vs 59.6 ) |
Market Strategies Fundamentals
Worries over a global slowdown amid geopolitical concerns have stymied what could be explosive growth across the board. The major European nations have embargoed Russian trade which following sluggish economic conditions has caused their GDP’s to languish, while the USA is surging ahead. Early last week, Germany’s IFO survey showed Teutonic business confidence in September dropped to its worst level in more than a year.
The IFO survey is prepared by the IFO Institute for Economic Research, and is based on about 7,000 monthly survey responses from companies across the board, in manufacturing, construction, wholesaling and retailing. Companies are asked to express their opinions about the business climate in Germany regarding both the current situation and expectations for the next six months. The change for September was a drop of 0.5% to a value of 110.7, which is a negative indicator.
This week’s meeting of the European Central Bank ( ECB ) on Thursday is very important as they have previously promised a form of quantitative easing including the purchasing of covered bonds and other asset-backed securities. The result of all this puts upward pressure on the dollar and negatively impacts American competitiveness across the board. As a result volatility has exploded the VIX up over 22% last week. One investor bought 125,000 November 120 Puts on the S&P 500 SPDR for $ 0.22. Many investors have bought inexpensive Put Options on the S&P 500 to protect their portfolios in the event of a big drop. The VIX closed at 14.85. Its long term average is about 19. Every major country, China, Japan, and Europe are all increasing money supplies to boost their economies.
Market Strategies Economic Data
Second Quarter GDP was revised up to 4.6% in the third estimate from 4.2% in the second estimate. This was the best quarterly estimate since Qtr 4, 2011. The bulk of the great numbers came from improvements in investment spending which increased 19.1% after previously reporting a 17.5% gain. Equipment Spending rose 11.2% from 10.7% and intellectual property jumped 5.5% from 4.4%.
The net export deficit was even revised down to $ 460 Bln in the third estimate from $ 463.5 Bln in the second estimate. Government spending was revised up meagerly to 1.7% from 1.4%. However, all that was prior to the ISIS situation requiring additional U.S. military outlays.
None of these serious geopolitical events were evident during this period of the Second Quarter or any time in our history since the times of the cold war.. The worst of the events is the Russian situation which is likely to have been over-reacted to by Western powers and causing contractions everywhere from Finland, France, Italy and of course Germany over the Ukraine which is hardly worth the effort as these people have been self-dealing, infecting the whole world with their ambitions. This is a wild-card to possibly retard all the good work done by the Bernanke-Yellen Fed.
Market Strategies Economic Cycles
October often evokes fear on Wall Street as memories are stirred of crashes in 1929, 1987, the 554-point drop on October 27, 1997, back-to-back massacres in 1978 and 1979, Friday the 13th in 1989 and the 733-point drop on October 15, 2008. During the week ending October 10, 2008, Dow lost 1,874.19 points (18.2%), the worst weekly decline in our database going back to 1901, in point and percentage terms. The term “Octoberphobia” has been used to describe the phenomenon of major market drops occurring during the month. Market calamities can become a self-fulfilling prophecy, so stay on the lookout and don’t get whipsawed if it happens.
But October has become a turnaround month—a “bear killer” if you will. Twelve post-WWII bear markets have ended in October: 1946, 1957, 1960, 1962, 1966, 1974, 1987, 1990, 1998, 2001, 2002 and 2011 (S&P 500 declined 19.4%). Eight were midterm bottoms. Current market weakness could be setting up October 2014 to be another “turn-around” month.
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From Stock Market Almanac
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.
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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 | 2.59 | 2.42 | 2.21 |
| IIIN | Insteel industries | Metal fabrication | 29 | 0.7 | 411 | 22.44 | 21.22 | 18.50 |
| KR | Kroger | Retail Food | 17 | 0.24 | 24.6K | 50.30 | 48.90 | 46 |
| XOM | Exxon Mobil | Energy | 13.4 | 1.1 | 420K | 98.50 | 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 | 48.46 | 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 | 25.28 | 23 | 21.50 |
| SPXU | Ultra Short S&P | Hedge purposes | 45.46 | 43.20 | 41 | |||
| VXX | VIX Volatility | Hedge Portfolio | 29.98 | 27.10 | 26 | |||
| SAN | Banco Santander | World Banking | 18 | 2.73 | 118.6K | 9.75 | 9.30 | 8.50 |
Highlighted numbers indicate execution
Undervalued Small Cap Stocks
We have bought positions in each of these companies.
Target Energy* ( TEX.AX 0.061 Australia ), In the USA, ( TEXQY: $ 5.50 ) a new ADR
Target Energy* ( TEX.AX 0.06 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 $ 0.06 )*
Has merged with LGM, a potential to be the Tesla of Asia. We like it now, above its 13-day moving average. 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.
See more about the company at www.leomotors.com ( English Version )
Cleveland BioLabs, Inc ( CBLI $ 0.40 )*
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 Russians have 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
45%+ Upward Movement Week — See Report
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.
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CONTACT
Please Direct All Inquiries To:
Mike King
(702) 650-3000
Princeton Research
3887 Pacific Street,
Las Vegas, Nevada 89121
Fax: (702) 697-8944
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